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!
