Deede Wockenfuss

• Manage |RSSReal Estate Bloggers
• Manage |RSSThe Real Estate Agent of the Future

I have personally come to NOT trust any banks due to some of the horrors we have experienced in the past couple of years. I can honestly say that all of my old, trusted lenders are either out of business or work for an institution that makes making loans almost impossible. As an example, we had a buyer 'pre-approved' for his mortgage loan with XYZ bank. He was purchasing a short sale I have listed. The short sale lender approved the short sale pretty quickly, so we assumed that we would close per the contract at the end of June. The lender requested an additional week, which we gave him. But, around the 4th of July, he stopped returning our calls. The selling agent went to his place of business on Monday and sat in front of him to get the real story. He says he can definately close the loan, but that he needs another 10 days. WHY? Because, banks are changing the rules for qualifying for mortgages on a daily basis. A letter of pre-approval may not be valid in 30 days. Meanwhile, money is spent by the buyer, seller, and agents to make repairs, pay for inspections and appraisals. All of this is done is good faith, as the buyer has PRE-APPROVAL. When something goes wrong at the last minute because of lenders further tightening up their qualifications, all of these people get stuck with the bill and agents, title offices and some repairmen, never get paid. In this case, the foreclosure is looming on the property and the short sale bank has threatened to 'move up' the foreclosure if this buyer does not close. Someone please tell me why lenders gave absolutely ANYONE a no money down loan a few years ago when prices were double what they are today, but tighten their standards when the prices are finally right and buyers can afford the loans? Chances are much better today than 3 years ago, that today's loans won't go bad. Why? Because the prices are low, the rates are low and no one wants to make these mistakes again. If we are really flirting with the 'bottom' of the market, isn't NOW the best time to take a risk on a loan? These banks continually throw out the baby with the bath water. Until they fully understand and accept that they MUST make loans to stay in business, they will continue to drive our country down the financial toilet. Deede Wockenfuss CybrSold Concepts A Frugal Virtual Real Estate Company 480-248-9500 http://www.CybrSold.Com

James Dwiggins says, I am personally sick and tired of the lack of responsibility Americans have for their actions. Obviously, you don't live in Arizona, or one of the other 3 states that have been devastated. I could cite homeowner nightmares that would make your hair stand on end, but I am going to cite a case that I am currently working on. Purchaser put 10% down payment on a $210,000 home two years ago. Unfortunately, this home is currently worth about $100,000. This homeowner wants to do the right thing. He contacts his mortgage company, tells them his situation ( he has a job, but with a 20% cut in pay). His current payment on this property is $1650. He tells the bank that he can afford to pay $1000 per month and that he will try to stay in the home several years hoping that the value will increase. Bank tells him that they do not see a problem, as he is CURRENT on his mortgage, so he must be in a position to pay the agreed $1650. Borrower says that due to the value of the home, he is overpaying by 50%. There is an identical home down the street for rent for $850 per month. The bank says, "Sorry, we don't have a program for you". Immediately, the borrower STOPS paying his mortgage payment. Should he let the home go to foreclosure? Should he attempt a short sale? This is an older home, and the homeowner has added thousands of dollars worth of improvements to the home. If he walks, he will never see his downpayment OR his investment in the improvements. Is he angry? You don't want to know what he has threatened. Bottom line is this: Banks need to quickly and graciously modify the loans of people in this man's position. It is better to get $1000 per month, than a stripped shell and a loss of over 100K. The full loan amount stays on the books, which means there is no 'paper loss' to the bank. Don't the share holders of these banks know what these idiots are doing? They are BANKRUPTING our country. Homeowners have lost their equity, lost their jobs, some their marriage, moved adult children back in the home, etc. They are DONE. They are not willing to lose anymore. NONE of this was this man's fault, but he is expected to possibly pay the rest of his life for an economic situation caused by rich, greedy businessmen. I am going to put the home on the market as a short sale. During this period, the bank will get NOTHING. It could take months or even a year to put together, and if the bank continues to refuse to play ball, it will be a stripped foreclosure. I have absolutely NO SYMPATHY for the banks. I am looking forward to the entire system falling apart, which it will, unless the banks start to realize that they are just NOT in control any longer. Deede Wockenfuss CybrSold Concepts A Frugal Virtual Real Estate Company 480-248-9500 http://www.CybrSold.Com

Greg Salera says, "In my market it's the discounters that have all closed up shop during the downturn, including Assist2Sell and FSBO.com. We never had a HelpUSell. Please back up your statement as to who the public is flocking to." Greg, you are right. Many of us top producing agents attempted to open and operate a 'discount company' model in the 'go-go' times. I can honestly state that at my discount company, we provided as much 'full service' and more than most of the 'trads'. However, those models are 'volume' based. Without the volume to support the discount prices, the discount franchiser closes up shop and reopens as a 'niche' model offering whatever type of commission structure works best for the client. Please don't 'discount the discounters' who are no longer operating via that model. Those guys are 'smart cookies'. They're not 'gone', they've just moved to greener pastures. Deede Wockenfuss CybrSold Concepts A Frugal Virtual Real Estate Company 480-248-9500 http://www.CybrSold.Com