The Real Estate Sage at The Real Estate Investment Institute - REII

Understanding Stubborn Banks! Stubborn Banks are accepting short sale offers yet often only throwing a $3,000 to $5,000 bone to the secondary lender, citing it's there policy. This of course often kills a short sales, when the secondary lender refuses to take less than $5,000 or what ever citing it's there policy.

OH MY! The First Bank won't allow any more to go to the second. The Second Lender won't take any less! Worse! The amounts involved are often a mire pittance!

If the seller can afford the difference the Bank wants it. If the Buyer is willing to pay more the Bank wants that money, too!

Why? Why would a Bank risk further losses over as little as $2,000? Why would the Bank be so stubborn?

Let's start with why a Bank would accept a short sale? The first reason and most important reason a Bank accepts a short sale is because they see it as in their best interest! They could care less how you as a debtor or REALTOR® see it, they answer to their stockholders and regulators not the debtors or entitlement mobs! The second reason is pragmatic, if the debtor's condition has substantially and uncontrollably changed! That's the reason for the "Hardship letters" the debtor must acceptably explain his position, "I quite my job I don't want to work any more" or "you got Federal "bail out" money so I'm entitled" won't get you a short settlement with any Bank!

So why won't they allow a reasonable amount to go to the second lender? Because, they see the second as creating the problems! Especially cash out seconds that are so common! The Bank made a safe or an insured loan to a qualified applicant then along comes a secondary Lender who loans the Debtor even more money, with little or no improvement in the debtor's financial position! Simply put the Bank sees the secondary lender as greatly responsible for the debtor's problems and worse the National problem. Often ignoring the fact that they may have originated the second, except when they still own the second!

From the Bank's position money going to the secondary lender is like paying Bonnie and Clyde to only rob you on Tuesdays, Wednesdays, or Thursdays because they have large deposits on Mondays and bring in lots of cash on Fridays to cash checks! They're pragmatic enough to pay a little because if they've accepted a short sale they believe it's saving them money, but see the payments to the second Lender as extortion!

I have a solution for some! Watch for it.

Irony: The Incongruities between what we hear and what is.

IE:

Having put in the time is not the same as experience.

Having a license is not the same as experience.

Having gotten away with something even repeatedly does not make it legal.

Agreeing with the masses doesn't make any of you right.

Knowing your not guilty doesn't mean the other guy is.

Watching from the sidelines doesn't necessarily teach you how to play.

Knowing what's allowed without knowing what's allowable precludes professional competence.

It can't be done doesn't mean you can't do it.

Saying is not the same as doing!

Wishing is not the same as willing.

Ignorance does not require stupidity.

There is hope! I've been very discouraged reading about REALTORS® demanding extension of the $8,000.00 tax credit for purchasers of selected homes to the determent of individual home sellers! Driving down the value your home! Worse, the NAR is demanding the credit be nearly doubled! There is hope! A few understand. This is Robin Hoodish! Robbing the good who's only crime is making more than you do to give to poorer who's only claim is that they make less than you do! All for a perceived boast in sales, fact is these buyers needed housing, they already qualified for the loan before this costly abomination. There is hope! Some people understand for most this is stealing your tax dollars and your equity to buy votes.

There is hope! I've been very discouraged reading about REALTORS® demanding banks and bankers be required to take what ever they the REALTORS® think is best! There is hope! Some understand banking and some understand they know nothing about banking.

Then, there is hope! I found this:

"Has man any right to exist if he refuses to serve society?" *

 "Has man any right to exist if he refuses to serve society?" *

"Has man any right to exist if he refuses to serve society?... Self sacrifice is the law of our age!" *

Does anyone believe this except those that think they're entitled to the sweat of another man's brow?

Does anyone demand sacrifice who believes he'll have to sacrifice?

"Self sacrifice is the law of our age!"* Hasn't this been the cry of every despot, every tyrant, every evangelical hollier than thow cultist? Everyone seeking to enslave! Self sacrifice can never be legislated, it can never be ordered only freely given! Those that would order such behavior are merely avoiding the proper term, slavery!

"You can't turn men into slaves unless you break their spirit..." * Indeed, hasn't the deliberate efforts to destroy our economy merely been to break our spirt?

*Ayn Rand "The Fountainhead"

ISM ISm Ism ism An Old Lesson  ‘ism" is that little suffix that turns a good word into fanaticism.

"Ism" is that little suffix that turns a noble idea into evil!

"Ism" is that little suffix that turns non-thinkers and haters into lemmings!

"Ism" is that little suffix that replaces logic with dogma!

ISM ISm Ism ism An Old Lessonis that little suffix that turns good people into evil masses.

There are some good "ism's" "capitalism" come to mind, but there is something about "ism's" that seems to corrupt. Politicalism is almost always evil! Who do you think corrupted those capitalist? I use to think Republicanism was good, but after keeping Bill Clinton in check for 6 years, "ism" got'm and it only took six months to turn as evil as Democratism.

I hold out hope for conservativeism. Man has to have hope! I do practice optimism and pragmatism.

A friend Ted Baker posted: http://activerain.com/blogsview/1238009/when-will-we-ever-learn- It needs seen!

From 1948!!

I've never tried re-blogging, here is a good cause! I've been going back and forth with Maggie's father for three years this month. This is a quite kid from a good family. We all get hit up for school projects, we all go after "POINTS" so lets help Maggie win double points!

Maybe if we can get her double points Daddy can throw in a pony! Buy a magazine and write Daddy telling him Maggie needs a pony!

Do you remember? Bunker Hill, The USS Chesapeake, The Alamo, Remember the Main, The Lusitania, The Reuben James, Pearl Harbor, The USS Maddox, The World Trade Center, Strasbourg

Bunker Hill, British troops attacked American Colonists. Result: The Revolution.               

The USS Chesapeake British navy captured and impressed American sailors. Result: Two years later the War of 1812.

The Alamo, Mexican troops attacked American occupying Mexican state of Texas. Result: Texas revolution, Texas independence. Texas joins the USA.

Remember the Main, the USS Main blows-up in Havana. Result: Spanish American War.

The Reuben James, American destroyer torpedoed five weeks before Peal Harbor. Result: Mugwumps procrastinate.

Pearl Harbor, Japan attacks America. Result: Mugwumps scared off the fence, America joins the Allies to fight for the oppresses. WW II.

The USS Maddox, reports being attacked in the Gulf of Tonkin by either the North Vietnamese or American Democrats lead by LBJ. Results Americans die, our allie falls, Mugwamps and Democrats blame Nixon.

The World Trade Center, over 3,000 Americans die at work. Result: Barack Hussein Obama "We regret that decisions were made by American officials, citizens, and building contractors to arrogantly place two skyscrapers in the path of a group of student pilots and their friends," said Obama in a speech at Saudi Arabia. "These were student pilots and there's no excuse for this kind of hubris." Mugwamps and Democrats sunder.

Strasbourg, Barack Hussein Obama apologizes saying "America has shown arrogance and been dismissive, even derisive."

Do you criticize or educate when dealing with others? Do you negociate or submit offers when you get them? Do you

 act like a real estate professional or a professional prevaricator?

Do you criticize or educate? I got involved in real estate education in 1973 because my broker didn't approve of me banging agents on the side of the head. Board rules restricted violence against other REALTORS®. By putting on monthly seminars I could address a third and some times half the Board at a time. Active Rain offers us the opportunity to educate like none before. Unfortunately many take the easer route.

Do you negociate or submit offers? The pragmatists in all of us almost demands we fax or e-mail offers to the listing broker no matter how unprofessional. But in the event your offer is not accepted, do you then negociate or exchange demands?

Personally, I'd like to suggest that if you don't come to agreement on the first submission that you try face to face negotiating with the buyer's agent meeting with the sellers and their agent!

Assuming that your differences are sincerely held beliefs negotiating is easer when you educate, when one side is wrong as apposed to manipulate.

Educating can be as simple as having well prepared comparables. If the seller believes there is a higher and better use of the property, be prepared with either zoning and/or cost estimates for the changes suggested.

Consumers are normally convinced that their ideas are right, to change their ideas you're going to have to gently educate not demand they prove their point. That's not to say that asking: "How did you arrive at the price? Is wrong in fact it's a great starting point, the more you can find out about the sellers position the less you have to teach.

Do you criticize or educate? Educators close more sales and enjoy life!

Do you negociate or submit offers? Negotiators close more sales and enjoy life!

The choice is your's! Misery loves company and criticizers gain lots of sympathy. Education takes more work and requires you to be right, but it pays better and you'll feel better.

I will not pander! I will not desecrate and decimate, discriminate or disseminate politically convenient de facto defecate!

I will not pander! I will not fan mawkish zephyrs!

I will not pander! I will not pontificate pompous political prestidigitation!

I will not pander! I will not join the vanguard purporting political protection through pompous legislation until we execute and prosecute current violations.