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Short Sale Expert Lawsuit

By
Real Estate Broker/Owner with J. Luis Properties, Inc.

Recently I received an unsolicited e-mail (spam) from someone named Sally Larabee about a very interesting subject. She claimed that Realtors all over the nation will be getting sued for calling themselves experts in short sales, when in fact they haven’t completed not one. It went on to list how this would take place and the only way to avoid it is to take their course (probably at a hefty price). It also states that if you really want to call yourself an expert you need to take their course and prepare yourself.  I thought to myself now wait one minute you just said if I don’t do a bunch of short sales and gain “experience” that I can’t call myself an expert, now you tell me if I take your course you can call yourself an expert. Which one is it? Expertise is not measured by how many times you perform a task, that’s called experience.

Although the argument is very compelling, it’s fairly easy to protect ones self with the proper disclosures without taking another short sale course. If you are doing short sales and haven’t had an attorney write a disclosure for you, shame on you. Get it done today and have all parties sign it.

Finally what I found interesting is that when I surfed the Real Estate Radio Blog, low and behold I found the exact same article written by Barry Cunningham, I thought the e-mail had Barry’s tone. I also wrote a post to that blog and somehow it was never published. I just wanted to let Barry know that his stuff had been plagiarized-or vice versa.

 

Comments(16)

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Audrey June-Forshey
RE/MAX Realty Services - Darnestown, MD
GRI, Gaithersburg, MD

Noel,  I think you raise a great point.  People, agents, think that because they have had a few short sale listings they are experts.  I think calling yourself an expert in anything that you do not have some sort of license or certification for is a very dangerouse thing.  I also think that agents need to be oh so careful with all of the advice that they give here in regard to tax ramifications as well.

Funny how the top selling agents who specialized in no doc buyers are all of the sudden they are experts in foreclosures and short sales?  I have a real problem with that.

Jan 06, 2009 07:21 AM
Noel Padilla
J. Luis Properties, Inc. - Kendall, FL
CDPE

Audrey,

They should be the experts they were the ones who created the mess, so they should know the inner workings of those whatchamacallit mortgage programs. Oh that's right, they weren't experts in that areana as well and tht's the problem. Too many agents jumping from fad to fad to squeeze every dollar they can out of whatever is in today. In the meantime they ruin it for all the agents who really take the time to educate themselves and crawl before they walk. When I first started doing short sales I told everyone I could that I was specializing in short sales. One friend in particular said to me "Oh yeah everyone is doing that." Oh did that hurt! I was officially grouped in with all the other "Realtors". Not good.

Okay hold your breath, I actually would rather make less money and do things right than make a ton of cash and burn poeple along the way.....now breathe, okay there I said it.

Jan 06, 2009 07:38 AM
Brian Brumpton
Keller Williams Boise - Boise, ID
Boise Idaho Real Estate

I got the same email and I echo you sentiments.  Is is just me or is AR being abused by marketers?  I'm getting more and more junk mail from people trying to sell me something who got my information from AR.

Jan 06, 2009 07:43 AM
Noel Padilla
J. Luis Properties, Inc. - Kendall, FL
CDPE

I think you are correct. I get no less than about 100 e-mails per day trying to sell me the latest in real estate gadgets or services. I read through them and most are crap, they don't even know how to spell.

That's another reason I wrote this blog so no one falls victim to these scare tactics, I've seen them before and everytime I verified that they only contain half truths and exagerations.

I guess these folks either don't understand marketing or are too cheap to pay for real marketing campaigns. I don't ever buy anything from spam-when I need to buy something I do this thing called shopping. What a concept!

Jan 06, 2009 07:50 AM
Gene Allen
Fathom Realty - Cary, NC
Realty Consultant for Cary Real Estate

They are just trying to create opportunity and make you call them.  All part of the game for them.

Jan 07, 2009 01:10 PM
Valerie McNeal, CRS, GRI, CDPE
Keller Williams Integrity Bob Lucido Team - Ellicott City, MD
Integrity, Knowledge, Results

wow! Everone's trying to make a dollar in this market! Don't get suckered...

Jan 08, 2009 07:09 AM
Sergio Rebollo Jr.
Real Estate TeamMates - Miami, FL

Noel...I was just told about this "lawsuit" thing today at a breakfast meeting.  Hadn't heard or seen it myself so I am glad that I stumbled on your blog.  If you don't mind, I'd like to re-blog on those groups that you did not post to providing additional exposure to "the truth" about this scam.

On a separate note....I've received your e-mail campaigns and I think you've got a great Integrated Campaign going on with your campaigns/website, etc.

Jan 08, 2009 12:14 PM
Paul Francis
Francis Group Real Estate - Las Vegas, NV
Las Vegas Real Estate Agent - Summerlin Homes

I think someone who has closed several short sales and has done them for years (before the bubble anyways) is far more qualified then somebody who has never closed a short sale, takes a $290 class and gets a certificate... just my thoughts.

Jan 08, 2009 06:37 PM
Noel Padilla
J. Luis Properties, Inc. - Kendall, FL
CDPE

Paul

That is exactly the point. The e-mail is trying to solicit for you to take a class to become an expert. I agree with you, until you have done at least 3 or 4 short sales you really don't know what to expect. Personally I think short sales are a breeze. There isn't much to them at all. I was a mortgage broker in Illinois so you are basically asking for the same documents as when appling for a loan. I tell my prospects that in a short sale I have to basically disqualify them for the loan using the same documents and of course some added ones as well. Short sales are more fustrating and time consuming than anything.......nothing replaces in-the-trenches experience.

Jan 08, 2009 10:46 PM
Josh David
Bridgeview Bank Mortgage - Tampa, FL
Purchase Specialist... www.joshdavid.us

Hello Noel, I belong to a group "Carpe Diem Partners, LLC', Carpe Diem will negotiate your short sales for FREE and there is NEVER an expense to either you or your clients.

We have completed over 500 successful short sale transactions, and they currently hold over $37M in escrow.

The process typically takes 60-120 days. You are still entitled to your 2.5% commissions on all of your listings.

If you are interested, I would love to talk to you about getting started. I simply provide you with a lead sheet, you send it back w/a CMA and we will have an approval w/in 24-48 hrs.

Sound good?

Cheers to "09"

JD

Jan 09, 2009 12:07 AM
J. Philip Faranda
Howard Hanna Rand Realty - Yorktown Heights, NY
Associate Broker / Office Manager

As much as I dislike amateurs calling themselves "experts," this sounds like bologna.

Jan 11, 2009 02:36 PM
Noel Padilla
J. Luis Properties, Inc. - Kendall, FL
CDPE

Barry

I don't have a problem with anyone making a buck, it's just the scare tactics I have a problem with. I could care less of your claims of Realtors being sued for whatever reason. It's my responsibility as a professional to know that what I am doing, is not in fact against the law or misleading. I don't need some spam in my inbox telling me what appears to be exaggerations of what may or may not be happening. Give me a link to a publicly recorded lawsuit or incarceration of a Realtor doing what you said then I may pay attention. I likened that e-mail to someone in Nigeria claiming I have a long lost relative who died and left me money. I'm kind of getting sick of it you know what I mean.

I do provide some services free of charge, all the time. I call it customer service and guess what, it has paid off time and time again in the form of quality referrals. I am not rich and do not aspire to be, I just want to make an honest living. Apparently you have built a fine profitable organization and kudos to you. I also want to compliment you on your marketing its genius, just not my style.

Jan 13, 2009 12:21 PM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

Anyone can be sued and it is just a matter of time, like real estate it is just a numbers game for Lawyers too. Look up expert in the dictionary and everyone can claim to be an expert.

Jan 14, 2009 12:16 PM
Maya Thomas, Broker
Tampa, FL
Please see my client recommendations.

We have a lot of liability in this business.  I keep that in mind. 

I'm getting a lot of wacko AR unsolicited emails too.  I have a really strange one that I'd like to forward to someone so that something could be done about it, but I don't know who to send it to or how.

Feb 26, 2009 02:59 AM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Disclosure is key when doing short sales. . I usethe same disclosures I got when I completed my CDPE and everyone signs!

Feb 26, 2009 11:37 PM
Darrell Catmull
Destiny Real Estate - Salt Lake City, UT

Short Sales are not for the meek or arrogant.  I'm concered when we think disclosures and indemnification gives us a gold pass to help a homeowner short sale a home.  Even worse is the agent who sits in a class and then uses a designation to overcome their inexperience.  We all know consumers don't ask the questions they should before hiring an agent.  Knowing this, I feel it's our responsibility to take on transactions we can confidently close with the mortgagors best interest at heart.  If you're not organized, shrewd, creative, and resourceful you shouldn't be attempting short sales.  Period!  I'm hope a flury of lawsuits do get filed against education companies and agents who arragontly bite off more than they chew.

 

Nov 04, 2010 11:55 AM