(239) 243-0630
Professional Debt Negotiator working with sellers and banks to liquidate problem properties. Over 30 years of construction and negotiating experience.
Great point, Julie. I especially like your provocative question to us. You remind us to focus on the next step in the solution to the mess we are all in together. There seems to be a pervasive lack of trust, no matter who, when or why it formed. The important question is, "What do I do next to help resolve the problem?" I can appreciate Mark's feelings and agree that 99.9% of folks are good people and really want to do the right thing. But according the webinar Freddie Mac gave to the National Association of Realtors Friday, Oct 10, 2008 (available at NAR's website), 50% of all foreclosures occur with no contact between the seller and the lender (or HUD-approved counseling). They emphasised the role of the real estate professional in directing the homeowner to free counseling BEFORE recommending any course of action in dealing with the defaulted loan (like signing a listing agreement). So to answer your question, Julie, I think we should encourage everyone connected with real estate to direct the homeowners facing default to get publicly funded counseling. That will ensure that the homeowner has guidance from a neutral 3rd party, qualified to truly help. The good-intentioned homeowner can take proper moral and ethical action only if they learn their options and what steps they can take to show a good-faith effort in resolving the default. Best regards, Tom
This is a complex problem, and needs a multi-part solution. I highly recommend Robert Shiller's new book, "The Subprime Solution". He explains that the bailout is just the first step in fixing the systemic problems of our national economy. While the government and major lenders address the big complex problems, real estate professionals need to adapt to the new marketplace. Defaulting homeowners need specialists that understand how to deal with this unique selling position. It's not just business as usual. If the house does not sell before the auction, everyone involved loses. If the house does not sell at the auction, the lender places another low price REO onto the MLS. REO's are flooding the market, increasing supply and driving prices down further. Lender's lose twice as much (on average 40% vs 19%) on an REO vs a short sale. The worst solution is to "let things run their course". REO's are rapidly increasing and need to be actively prevented from further damaging house values, lenders profits and the nation's economy.
Gustavo and Glenn, It's just my opinion, but I believe the best way to handle the new Florida Statute is to require the distressed seller to complete HUD-approved housing counseling BEFORE offering them a listing agreement. Real estate agents do not need to take on the responsibility and potential liability by implying legal and/or financial advice in providing a short sale listing without proof of counseling. The HUD-approved counseling is free online or over the phone, and available in English and Spanish. The Hope hotline is 1-888-995-HOPE. Their website is www.995hope.org. The online version takes about 45 minutes to complete. By the way, they provide 3rd-party verification of the seller's financial hardship. That goes a long way toward getting a short sale approved. Best regards, Tom
