Lie Lie Lie!

Lie Lie Lie!

So is it shocking to you that banks would lie? Didn’t your client tell an untruth or two for the first few months when they didn’t make the payments on their homes?

I do not lie, it is my horrible weakness. No matter how far I’ve evolved, I shoot from the hip and tell the truth when directly questioned. I aspire to create a filter that will allow me to temper this feature on me but to date I have failed to keep it in check. Perhaps it’s from the years of collecting on assets and lying to homeowners, agents… The carry over it dragged into my failed marriages… I will never know why I’m incapable of not lying today or at the very least tempering the truth to be palatable.

Banks LIE! Oh, I am sure there are bank processors that believe what they are telling you, but at the end of the day it’s a filtered down lie created through horrible misdirection.

OK, there are three places to take money on a file…all three require lying to get it. Money can be obtained from the buyer, the seller and the agent’s commission.

It’s not difficult to break this down:

To obtain money from the buyer, all you need to do, if you are a bank, is disagree with the fair market value and tell the listing agent you think the property is worth more money than it actually is. Consistently this will cause the agent to go to the buyer and ask him to raise his offer.

To obtain additional money from the Seller the bank will lie and offer a loan modification in exchange for disclosure of personal assets or the listing agent will submit too much information about the seller, thereby making it easy for the bank to ask for those funds.

Finally, to get the listing agent’s commission, the bank will lie about phony guidelines that do not exist or claim an ‘investor’ or anything else that will work at negtiation time.

I am convinced that negotiations have gotten so bad with agents that I could work at a bank and tell an agent that “Aliens have taken over the bank and I am now required to ask that you submit a human kidney with your HUD.” Somewhere there is an agent that would probably agree to the deal.

Someone asked me today, when do you know when the bank is lying? I responded “The minute you pick up the phone and start talking to them.”

Every finite rule and guideline I have ever encountered on an asset can be bent on the bank’s side. I have seen them bend, break and/or remove anything and everything that could be considered a finite bank guideline. From pre-payment penalties to commission pay-offs, I have seen management override “investor” guidelines to “corporate” guidelines. Because, maximizing the assets return is the most important agenda at in a bank.

At the end of the day this is just a glorified debt collection.

5 comments on “Lie Lie Lie!”

  1. Tania

    Question: “How do you know when the bank is lying?”
    Answer: “The minute you pick up the phone and start talking to them.”


  2. Terry in Tahoe

    I truly believe every word of this – everytime I pick up the phone with the bank I know that what I am hearing is not going to be the truth and so I proceed with that knowledge and work through the process.

  3. Kevin

    I thought a Wells Fargo rep was going to ask my client to send in their grocery receipts!

  4. bibi

    Thanks for being a shining star and taking this battle to the Banks! Your courage and fearlessness motivates us! Keep up the good work!

  5. So, tell me more!

    Thanks for helping unite our industry to fight back and help people in general, recover from this situation as best we can.

    I understand there’s always a loser when you take on risk and even when you don’t it’s a risk but the losers don’t need to get stomped on. Many of those “losers” don’t follow the trends or invest for profit, they just wanted a place to live.

    My personal opinion: All the GSE professional investors should be paying the price for putting their money on the line and losing, instead because it’s billions of dollars, we are supporting and covering their losses. As an investor, if they had started pulling their money back based on sound investing principles, the banks would have had to tighten their underwriting standards based on the supply of money. Stopping the market from heating up to the degree it did before “announcing” the fall. Investing IS Risk. Plain, usually Painful but very Simple. It’s gambling that you’re smarter than the next guy enough times to make a profit.

    If we learn how to protect our clients, then one-by-one we can start pulling people and our businesses out of the water.

    But, I see the banks winning if we don’t unite soon and provide very real Standard Operating Procedures (SOP’s) on how to effectively deal with the banking industries approach to handling toxic loans. Just as Independent Appraiser’s took the fall to “managed” Appraisals and BPO Opinion’s. I’d like to be able to prove our industry can “independently” and most effectively deal with the banks in representing our clients short sale transactions.

    One step further, (I have a knack for taking that step)in Illinois we have an atty. state. It seems atty’s. have got to step up and unite as short sale atty’s negotiating with the banks since we shouldn’t be doing it (unless it’s subject to atty approval-to shift the liability back to an atty. it seems). Most atty’s. I talk to are not with it- but I only know this because of my training about it. To my knowledge there is no training for Attys.

    Most of the Broker businesses in Real estate are small and not united except by NAR. We will go out of business enmasse, if we allow Banks to pick and choose which brokerages get to participate to the detriment of smaller independents. (As many might already know- ReMax has a deal to pick up BofA short sale referrals from the bank)- So do you assume if you go to work with ReMax that you’ll get more deals closed but did ReMax unite and as a Brokerage to offer better training or just promise to cooperate more fully in the transactions? Hum, will the rest of us not be able to prove our worth? Can the rest of us get on the list or is it the train out of town?

    Game on Lee, I got out of short sales because there was no path that seemed feasible in the past. I’ve ramped up due to favorable legislation and I’m glad you’re putting your knowledge base and sphere of influence to work!

    Yes, being brutally honest can be a downer but only when the opinionee doesn’t re-assess potential failings observed by others regarding their actions. If you are your own person, as we all should be, then opinions are opportunities to re-affim we are on “our” right path.

    Now nagging/whining is a totally different situation…

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