The new flipping: short sales

[SD Squatter]

I guess nothing here, a good read on flipping of short sales:

http://www.heraldtribune.com/article/20091115/ARTICLE/911151083/

Real estate professionals are a key part of short sale flipping. Of about 120 short sale properties that sold twice within a month in the Sarasota area, more than half of the buyers or sellers were real estate agents, real estate attorneys or mortgage brokers.
(…)
On behalf of a friend, business partner or straw buyer, the agent starts by reporting a low value to the bank, allowing the related party to buy the property for less than the fair-market value. While the bank considers the offer, the agent can put the property “on ice, ” ignoring higher bids or turning away potential buyers.
(…)
Banking experts point out that those losses trickle down to taxpayers, who have bailed out the banking industry.

[Rt.66]

I wonder how many on this board have called on a well priced home only to get voice mail that never gets responded to? Or my favorite the mail box that is perpetually full?

How many have been discouraged by the listing agent?

At this point realtors should be pariahs, yet they are still allowed and encouraged to interject themselves into the home purchase process.

Is anyone surprised at any story of realtor self enrichment shenanigans?

The one good thing that could have come out of this bubble would have been an end to this scourge.

[Rt.66]

I wonder how many on this board have called on a well priced home only to get voice mail that never gets responded to? Or my favorite the mail box that is perpetually full?

How many have been discouraged by the listing agent?

At this point realtors should be pariahs, yet they are still allowed and encouraged to interject themselves into the home purchase process.

Is anyone surprised at any story of realtor self enrichment shenanigans?

The one good thing that could have come out of this bubble would have been an end to this scourge.

[Rt.66]

I wonder how many on this board have called on a well priced home only to get voice mail that never gets responded to? Or my favorite the mail box that is perpetually full?

How many have been discouraged by the listing agent?

At this point realtors should be pariahs, yet they are still allowed and encouraged to interject themselves into the home purchase process.

Is anyone surprised at any story of realtor self enrichment shenanigans?

The one good thing that could have come out of this bubble would have been an end to this scourge.

[Rt.66]

I wonder how many on this board have called on a well priced home only to get voice mail that never gets responded to? Or my favorite the mail box that is perpetually full?

How many have been discouraged by the listing agent?

At this point realtors should be pariahs, yet they are still allowed and encouraged to interject themselves into the home purchase process.

Is anyone surprised at any story of realtor self enrichment shenanigans?

The one good thing that could have come out of this bubble would have been an end to this scourge.

[Rt.66]

I wonder how many on this board have called on a well priced home only to get voice mail that never gets responded to? Or my favorite the mail box that is perpetually full?

How many have been discouraged by the listing agent?

At this point realtors should be pariahs, yet they are still allowed and encouraged to interject themselves into the home purchase process.

Is anyone surprised at any story of realtor self enrichment shenanigans?

The one good thing that could have come out of this bubble would have been an end to this scourge.

[sdrealtor]

I get emails almost daily from short sale companies looking to pull these kinds of shenanigans. They are slimebags. From what I see in the SD market there isnt alot of this going on. Thhe market is strong enough that the lenders recognize they can get full retail on the properties so there isnt much margin to facilitate these things on short sales. Not to say it doesnt happen here (I’m sure it does to some degreee) just that it isnt all that prevalent in this market.

[sdrealtor]

I get emails almost daily from short sale companies looking to pull these kinds of shenanigans. They are slimebags. From what I see in the SD market there isnt alot of this going on. Thhe market is strong enough that the lenders recognize they can get full retail on the properties so there isnt much margin to facilitate these things on short sales. Not to say it doesnt happen here (I’m sure it does to some degreee) just that it isnt all that prevalent in this market.

[sdrealtor]

I get emails almost daily from short sale companies looking to pull these kinds of shenanigans. They are slimebags. From what I see in the SD market there isnt alot of this going on. Thhe market is strong enough that the lenders recognize they can get full retail on the properties so there isnt much margin to facilitate these things on short sales. Not to say it doesnt happen here (I’m sure it does to some degreee) just that it isnt all that prevalent in this market.

[sdrealtor]

I get emails almost daily from short sale companies looking to pull these kinds of shenanigans. They are slimebags. From what I see in the SD market there isnt alot of this going on. Thhe market is strong enough that the lenders recognize they can get full retail on the properties so there isnt much margin to facilitate these things on short sales. Not to say it doesnt happen here (I’m sure it does to some degreee) just that it isnt all that prevalent in this market.

[sdrealtor]

I get emails almost daily from short sale companies looking to pull these kinds of shenanigans. They are slimebags. From what I see in the SD market there isnt alot of this going on. Thhe market is strong enough that the lenders recognize they can get full retail on the properties so there isnt much margin to facilitate these things on short sales. Not to say it doesnt happen here (I’m sure it does to some degreee) just that it isnt all that prevalent in this market.

[urbanrealtor]

[quote=sdrealtor]I get emails almost daily from short sale companies looking to pull these kinds of shenanigans. They are slimebags. From what I see in the SD market there isnt alot of this going on. Thhe market is strong enough that the lenders recognize they can get full retail on the properties so there isnt much margin to facilitate these things on short sales. Not to say it doesnt happen here (I’m sure it does to some degreee) just that it isnt all that prevalent in this market.[/quote]

I actually managed to have a sit down with an Escondido atty who was doing this.

Its pretty easy.
She did not even have MLS access.

Instead, she just went through the UT announcements about the NOT’s and knocked on the door.
The borrower was happy at avoiding a foreclosure.
The bank was happy to have cash instead of a property.
The atty was happy because she found a new buyer while in escrow to buy and sold it about a week after buying (with a healthy markup).
The new buyer was happy because it was a small premium for not having to deal with a short sale or an REO.

Honestly, I think the only one acting dumb or unethical here are the banks for the following reasons:

-They aren’t doing research prior to contracting to sell and thereby getting low prices for their collaterals (thus costing shareholders and possibly taxpayers)

-They aren’t being proactive regarding foreclosure alternatives (thus leaving it to others to figure out how to avoid it.)

They set it up as a sink-or-swim for borrowers with fucked up loans and then feign surprise when the borrowers look after their own well-being.

It seems to me that everyone other than the banks are looking after their own interests in a fair way.

[urbanrealtor]

[quote=sdrealtor]I get emails almost daily from short sale companies looking to pull these kinds of shenanigans. They are slimebags. From what I see in the SD market there isnt alot of this going on. Thhe market is strong enough that the lenders recognize they can get full retail on the properties so there isnt much margin to facilitate these things on short sales. Not to say it doesnt happen here (I’m sure it does to some degreee) just that it isnt all that prevalent in this market.[/quote]

I actually managed to have a sit down with an Escondido atty who was doing this.

Its pretty easy.
She did not even have MLS access.

Instead, she just went through the UT announcements about the NOT’s and knocked on the door.
The borrower was happy at avoiding a foreclosure.
The bank was happy to have cash instead of a property.
The atty was happy because she found a new buyer while in escrow to buy and sold it about a week after buying (with a healthy markup).
The new buyer was happy because it was a small premium for not having to deal with a short sale or an REO.

Honestly, I think the only one acting dumb or unethical here are the banks for the following reasons:

-They aren’t doing research prior to contracting to sell and thereby getting low prices for their collaterals (thus costing shareholders and possibly taxpayers)

-They aren’t being proactive regarding foreclosure alternatives (thus leaving it to others to figure out how to avoid it.)

They set it up as a sink-or-swim for borrowers with fucked up loans and then feign surprise when the borrowers look after their own well-being.

It seems to me that everyone other than the banks are looking after their own interests in a fair way.

[urbanrealtor]

[quote=sdrealtor]I get emails almost daily from short sale companies looking to pull these kinds of shenanigans. They are slimebags. From what I see in the SD market there isnt alot of this going on. Thhe market is strong enough that the lenders recognize they can get full retail on the properties so there isnt much margin to facilitate these things on short sales. Not to say it doesnt happen here (I’m sure it does to some degreee) just that it isnt all that prevalent in this market.[/quote]

I actually managed to have a sit down with an Escondido atty who was doing this.

Its pretty easy.
She did not even have MLS access.

Instead, she just went through the UT announcements about the NOT’s and knocked on the door.
The borrower was happy at avoiding a foreclosure.
The bank was happy to have cash instead of a property.
The atty was happy because she found a new buyer while in escrow to buy and sold it about a week after buying (with a healthy markup).
The new buyer was happy because it was a small premium for not having to deal with a short sale or an REO.

Honestly, I think the only one acting dumb or unethical here are the banks for the following reasons:

-They aren’t doing research prior to contracting to sell and thereby getting low prices for their collaterals (thus costing shareholders and possibly taxpayers)

-They aren’t being proactive regarding foreclosure alternatives (thus leaving it to others to figure out how to avoid it.)

They set it up as a sink-or-swim for borrowers with fucked up loans and then feign surprise when the borrowers look after their own well-being.

It seems to me that everyone other than the banks are looking after their own interests in a fair way.

[urbanrealtor]

[quote=sdrealtor]I get emails almost daily from short sale companies looking to pull these kinds of shenanigans. They are slimebags. From what I see in the SD market there isnt alot of this going on. Thhe market is strong enough that the lenders recognize they can get full retail on the properties so there isnt much margin to facilitate these things on short sales. Not to say it doesnt happen here (I’m sure it does to some degreee) just that it isnt all that prevalent in this market.[/quote]

I actually managed to have a sit down with an Escondido atty who was doing this.

Its pretty easy.
She did not even have MLS access.

Instead, she just went through the UT announcements about the NOT’s and knocked on the door.
The borrower was happy at avoiding a foreclosure.
The bank was happy to have cash instead of a property.
The atty was happy because she found a new buyer while in escrow to buy and sold it about a week after buying (with a healthy markup).
The new buyer was happy because it was a small premium for not having to deal with a short sale or an REO.

Honestly, I think the only one acting dumb or unethical here are the banks for the following reasons:

-They aren’t doing research prior to contracting to sell and thereby getting low prices for their collaterals (thus costing shareholders and possibly taxpayers)

-They aren’t being proactive regarding foreclosure alternatives (thus leaving it to others to figure out how to avoid it.)

They set it up as a sink-or-swim for borrowers with fucked up loans and then feign surprise when the borrowers look after their own well-being.

It seems to me that everyone other than the banks are looking after their own interests in a fair way.

[Author]

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