IT'S JUST NOT RIGHT, YOU PIG!

I just got off the phone with an agent in Miami and I was completely and utterly stupefied by the conversation. Of course, I am going to fill you in and I want to hear your honest opinion.

So, this Miami agent was talking with me about short sales. She was wanting to know more about short sales and specifically about the short sale specialist network. As many of you know, I support the Short Sale Specialist Network because I have worked with them for over a year and they are great. As you can imagine, I had a lot of positive stuff to say.

Well, why we were talking, she asked me if I charge for doing short sales. Now, this question was confusing to me because I thought....of course I charge, I charge a commission. I told her what I was thinking and said, yeah, I charge a commission, 6%.

Apparently I didn't understand the question and she says to me, my title attorney charges $1,500.00 to negotiate the short sale and she wanted to know if I did that up here in Nashville.

I told her that in my opinion that was unethical. Well, of course she was slightly offended and proceeds to tell me how in Miami everyone does it. I very nicely explained to her...that's fine but, I wouldn't do it. Funny enough, she never asked me why....just kept justifying the behavior by telling me, or at least trying to tell me how it's done in Miami. The problem is, every time I got to the meat of my argument, she kept on telling me about how it's done in Miami.

So, what is my problem with this business model, let me explain.

If I have a client, who can't pay their mortgage, doesn't have a job, can't put food on the table and, needs to get out from under the debt burden of their home, I don't pile on more debt that they can't pay. It's unethical.

I don't care that the bank pays it....because, the bank isn't paying it, the seller is....let me explain.

Johnny gets a loan for $100,000.00

Johnny short sales for $50,000.00

Johnny owes the bank $50,000.00

Just because the bank tells Johnny he doesn't have to pay it, doesn't mean that $50,000.00 Johnny owes just simply goes away, someone has to pay it. Now, who do you think that might be...well, let me tell you, the banks depositors pay it. That's right folks, all of you doing short sales, do you understand that the owed money just doesn't float away in to space to never be seen again?

Now, my next point is going to flabbergast many of you because you aren't going to understand and it's too hard for me to put in a blog but, I will do my best.

If you get a bank, even as large as Bank of America, who operate without having liquid cash on hand to cover every single deposit, what happens to the bank when they begin loosing so much money that they are at risk of failure? The Federal Government jumps in and takes them over in receivership, or in the case of Bank of America, TARP aka nonvoting preferred share holders. My point is, the Federal Government begins giving them money to just stay alive. Let's use a better example, Fannie Mae. Fannie Mae is not only selling record numbers of non-performing assets, they are also selling them incredible short and that is why they keep going to the Federal Reserve via Congress every quarters asking for $350,000,000.00, yes that is millions, in money to keep the lights on. WHERE DO YOU THINK THAT MONEY COMES FROM? IT COMES FROM ME, THE TAX PAYER. In other words, why would I want to or seek out ways to add more debt to a seller that ultimately is going to come right back around to me to pay when Obama goes to the Congress and ask for  debt ceiling increase....that he did just last week to know 16,000,000,000,000.00 (Not sure what that number is but, its suppose to be 16 trillion). Did you miss that....I am sure you did, we all almost did.

Who cares that everyone else is doing it....that's why this country is where it is economically. She then proceeds to tell me that it's not her job to negotiate with the bank.

WTF! If it's not the Realtors job to represent their client to the best of their ability, whose job is it? SOMEONE TELL ME! What happened to fiduciary responsibility here? She then tells me that the majority of homes in her area are selling below $50,000.00 and a commission is only like $1,000.00 a job and she can't sustain her living, she tells me she could make more scrubbing floors........THEN GO F**KING SCRUB FLOORS YOU LAZY A$$.  (Oh, I didn't say that but, boy I was thinking it)

I am sick of lazy Realtors who don't want to get out there and work, making an honest living and then bitch and moan that when they do work, it's too damn hard and they can make better money doing something else. Yeah, if you are one of those, don't reply to this blog because if you do, I am going to light you up like a East Texas 4th of July. That's right, I have no problems saying it anymore. I am a conservative, gun toting, constitution loving, capitalist pig that believes that this practice is unethical and should be stopped.

If you believe that these services that take more, on top of your commission, is the right way, I work diligently to ensure all my means and efforts expose this lie and show these sellers that these fees are a crock because you could do the work yourself, with no additional expense and that the only reason you let these attorneys, title agents, 3rd party "negotiators" work these deals is because last summer they came and put hard woods in your home or every Christmas Santa comes by and delivers you that vintage Harry Winston.

No matter how you spin it, no matter how you justify it, piling more debt on to someone who can't afford it and expecting someone else to pick up the tab is ireprenshible and in my book, that makes you lower than a East Texas Rattle Snakes Belly. (Yes, I live in Tennessee now but, originally from Texas, born in Houston)

Now, it's your turn, go ahead and tell me how wrong I am. Go ahead and tell me how I am a socialist because this practice is nothing more than Capitalism and the American way....go ahead buster, say it.

What I do know, the America I grew up in, The Republic for which I am here and blessed by, was never Capitalism through theft. It was honorable, right standing and showed people who to make an honest days wage for an honest days labor....not this "lets see how much debt we can pile on".....CRAP!

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Jesse Gonzalez is a highly accomplished and respected real estate professional with a wealth of experience in the industry. With a career over 15 years, Jesse has established himself as a leading real estate sales and marketing expert.

As a licensed real estate agent since 2005 and a broker since 2008, Jesse has a comprehensive understanding of the complexities of the market. In 2013, he founded his firm, Liberty House Realty, LLC demonstrating his entrepreneurial spirit and commitment to delivering exceptional service to his clients.

Jesse's expertise extends beyond traditional real estate transactions. He obtained his Registered Appraisal Trainee in 2019, providing him with valuable insights into property valuation and market analysis. Although he decided to focus primarily on sales, his appraisal background gives him a unique advantage in understanding the intricacies of property values and trends.

With a dedication to excellence, Jesse consistently achieves outstanding results for his clients. Last year alone, he closed over $20 million in sales and received the prestigious Sapphire Award from his local association, recognizing his exceptional achievements in the industry.

Beyond his successful career in real estate, Jesse is passionate about education and personal growth. He is completing his undergraduate degree in Forensic Psychology, with plans to attend Law School in the fall of 2024. Jesse's ambition is to become a real estate litigator, focusing on real estate consumer protection law and advocating for the rights and interests of homebuyers and sellers.

As the owner/operator of the nation's largest social network for REO professionals, <a href="http://www.REOProNetwork.com">www.REOProNetwork.com</a>, Jesse has positioned himself as a thought leader and industry influencer. Through this platform, he fosters collaboration and knowledge-sharing among REO agents, attorneys, asset management firms, and other professionals in the field.

With a commitment to professionalism, integrity, and providing a personalized experience for his clients, Jesse Gonzalez is a trusted advisor and a driving force in the real estate industry. Whether assisting clients with buying or selling properties, he consistently goes above and beyond to exceed expectations and ensure successful outcomes.

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Comments

  • Short Sales are here. I believe the more you do, the
    Better you become. Knowledge, Training, Networking, and
    the desire to help the Real Estate Market back to normal.

    Ethics us most impotant,
  • ROFLMAO....I just read my blog and damn...I was angry. Regardeless of licenseing requirements, regardeless of statutory practice and law......I, me, myself, personally, can't and wont pile more debt on to someone who already can't pay it and then expect that someone else will.....ie, the bank.

     

    I guess part of my anger is because in the long run, I know who ends up paying, it's the tax payer. I shouldn't be saying this but, I had meetings this weekend with someone who has direct first hand knowledge of bank regulation and I was told that 2012-2013 will be the year of forced bank mergers under the guise of "stress testing" for the preperation of an inevitable fall of the Euro Zone.

     

    Yes, that last paragraph is full of crazy words you may not understand but, ultimately what I am telling you is that the government doesn't believe Europe is going to last pay 2013 and now they are preparing banks here for what could end up as the, "single, largest collapse of America's financial institutions ever recorded"

     

    So, let's all do our part and add more debt on to these banks....wouldn't you agree? Of course you wouldn't, no well intentioned person would but, our politicians aren't being honest with the American people, they aren't telling you what they know because they aren't just afraid of not getting re-elected, they have an agenda to do so in order to rush in the socialist utopian society which can't work......look at the Euro Zone!

     

    Anyways, personally, in my business and with my customers, I promise here and now, I will never pile on more debt to someone who can't pay it, expect someone else to pay it, for work I can justifibly do on my own. I promise that if I ever get to the point in my business where I can make more money doing something else....well, I will go and do something else.

  • Actually I think both of you have an argument, is just that you couldn't have a dialogue two see your points. As an agent my job is to look for the client's best interest, but I am limited two what my scope as an agent to just make sure the real estate contract and its negotiation is fair and protects my client from future liabilities.

    However my license doesn't cover the negotiation of a short sale, because the future legal and tax implication with a short sale. I can facilitate the client the negotiation with the bank for a short sale approval, but I always suggest to my clients, in writing, to look for legal and tax advise from an attorney and a CPA. 

    Unfortunately most lawyers and CPAs charge hourly fees for consultation, but in the long run that can save the client a lot of money and headaches, and in some cases the lawyer might help the client realize that a bankruptcy can make more sense than a short sale, and at that point we have to do what is the client's best interest nor ours.

    I think have some reputable attorney in a rolodex is a good idea, you can send your clients there for legal advice and in some cases to help negotiate a better deal with a bank in a short sale. I don't see anything unethical about that. I know some law firms who work with agents to facilitate the negotiations with the lenders and they charge either 1% of the commission so the commission goes down to 5% or they have a flat fee that is included in the HUD1. I have not use any of those services with any of my clients, but I suggest to my clients to consult with an attorney after they have the short sale approval letter from the bank to make sure they are in the clear. 

    I know some of my clients are struggling to pay the mortgage after the ARM reset or because their income loss, etc. but also they have been mortgage and rent free for up to 3 years. So as difficult as it is for some, I am sure paying $250 to $500 on legal consultation is nothing in comparison with the thousands that they have already saved in past and the thousands that they could save in the future.

  • Jesse, here is the thing. I am a bleeding heart liberal and I agree with you 100% on this. In a short sale it is the job of the realtor to negotiate the sale and not try to get more money piled on the debt relief. However, my experience has been that these junk fees don't get paid anyway so it is not an issue in my market. I also don't know what it like to sell homes that are worth $50,000 because I am fortunate enough to be in a market where I can work 60 hour weeks and make a great living. So it is hard for me to tell someone else off the way you do. I have nothing but admiration for agents who work tirelessly on transactions that pay so little. However, in the case of short sales my feeling is if the pay is not enough for you as an agent then don't do it. On one of my short sale listings I met a an agent whose job it was to take pictures for a large bpo practice, He took pictures of 5 homes a day and was paid $12 a home. I off handedly said I thought he was working awfully hard for so little money and was promptly rebuked with his honest answer that he thought it was a great job and he was happy to make $60 every day. I learned my lesson on that one.

  • Well said....I am with you Jesse!

  • I love you Jesse! 

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