Afterimage

Suddenly someone or something is gone; all that is left is an afterimage, a ghost to haunt the walls of your memory. I use music to remind me of people, places and things so that I never forget the image. Some are good memories and some are bad, I tend to romanticize and remember only the good in everything (these days it’s too much energy to focus on anything negative). Almost everyone and everything in my life gets assigned music (I even have songs that remind me of me the way I want me to be)…

The reason I bring this all up, why has everyone forgotten the past history of the banks, NAR, DRE and the designations?

Why is it that everyone once again believes that the banks want to foreclose?

Furthermore, does everyone know that the three headed monster (wells, chase and BofA) as of late are being a bit more proactive in their approvals?

Why does everyone believe that banks have zero clues about property values?

How and the heck do half the active agents and investors still shy away from short sales?

Does everyone remember that the Big 3 turned a profit last January and paid back all the borrowed TARP funds in cash (by the way, if my memory serves me correctly, if we didn’t give the banking industry the TARP money, we would also have a complete financial collapse and martial law in the streets)?

I was speaking to a political person about political “stuff” recently and he explained to me that the American people have a memory of one month backwards and have a foresight of one month foreword. I could not believe this, in fact all political figures plan for exactly this type of memory. I am constantly amused, shocked and amazed at the scope of information that the hamsters in my head know.
I am attempting to compile a suite of music to remind me of the days of being a speaker and of short sales… “Strange Days” by the Doors fills my mind. So let me do a few reminders to help jog your memory.

Banks Lie! They know the precise value of the property. However, since the overwhelming number of agents doing short sales are incompetent, the banks know they are taking advantage of the situation. Remember your client is trying to get out of a debt; the banks are just trying to secure the best possible deal for themselves.

Banks don’t want to foreclose! In fact, as of late, they have been fairly quick in their approvals. Just know for a fact that the banks make more doing a short sale than if they foreclose (it certainly helps if you have the bank’s calculator to assure you of this fact www.shortsalegenius.com or hire a competent mitigation company to deal with it www.fastshortsale.org).

Agents are disappearing! I just read a recent figure that there are officially half the active agents there were in California as there were in 2007. I am not sure of what the national figures are, I’ll make a wild stab and say that it’s in the 40-50% range. If you are afraid of working with the banks then get your files to someone to do the mitigation work, but get involved in this market.

NAR, DRE and designations are all influenced by money! I don’t begrudge anyone from making money for good training (coincidentally all of my past seminars were FREE and had better content). However, I was recently told of a Florida Association of Realtors event that by most reports – FAILED! Most agents walked out before the training was completed. Let’s face reality, these organizations are run by attorneys and attorneys are scared of their own shadows. However, when you have Wells, Chase and BofA using lobbying control to push these organizations buttons… You have what we have now! Fear! Lets be very realistic, how and the hell can any of these organizations make claims that you, as a real estate professional, have a fiduciary responsibility to ANY bank? Last time I checked you had a fiduciary responsibility to the principals in the transactions and trust me the banks are not a principal. So, most of these organizations just try to bleed a few more bucks from the “herd” and hope that everything will go away.

This market will remain a short sale market and NOT a REO market! Look – forget the loan mods, forget the maturing notes that are still pending (aka toxic debt)… worry about the interest rate going up! If the interest rate starts to climb, sales will halt. Homeowners will have very limited options when it comes to short sales and it will eventually plummet the prices further down.

Your government is trying to help homeowners! I know, I am a conspiracy theory nut, but this is actual fact. Freddie Mac and Fannie Mae are run by the federal government. They have sent word that they are only allowing 2 foreclosure postponements. It’s simple, they are. Your hard earned tax dollars are working at asset management and forcing a bottom to the real estate market. Pretty nifty, huh?

I have new faces and places to find music for everyday. Every person who has left their mark upon my life, I try and find their song. If I’ve met you and spent time with you, I probably have a song on my iPod so I never forget you. With short sales and the memory of those standing in the trees admiring the woods they’re in, I search endlessly for a song that will remind me of this period of my life.

“This Dizzy Life is just a Hanging Tree… for me”…Counting Crows.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.