Ron Taylor

• Real Estate Info For Investors

The mortgage lenders are still not willing to face reality. As a professional real estate auctioneer and real estate broker here in the state of North Carolina, I have been contacted by many homeowners who are about to be forclosured. The lenders are not willing to discuss a "short sale" until all financial documents they require, are in their possession.Then they send a BPO agent out to the property to tell them what the home is worth. In most cases, the BPO agent pulls comps that are 3 or more months old, disregarding the fact that we are in a market with falling prices. This whole process takes three or more months to go full cycle. The majority of the short sale offers are rejected because of the BPO figure given to the lender by the BPO agent. The lenders refuse to let me hold an auction for the benefit of the homeowner prior to the foreclosure, unless they can get the payoff plus all the penalities due. An example comes to mind on an upscale home in Wake Forest, North Carolina. A short sale offer was made on the home for $535,000. The payoff was $587,000. The BPO agent said the home was worth $640,000 to $660,000. That was back in November last year. The offer was refused. Here it is mid May and guess what? The home is still vacant. The banks call this a non-income producing asset. I could think of a different term but they wouldn't like it. Just think of the monthly payments they are not getting, the monthly property taxes they will pay, the cost of insurance they pay to protect a vacant property, utility payments and lawn maintenance. Not to mention all this effects their book value. How many home must the lenders take back before reality sets in? Ron Taylor<>< President/Broker/Auctioneer The Restorer, Inc. D/B/A Taylor and Sons Real Estate & Auctioneers 252-257-4822 (Office) 252-257-1302 (Fax) www.canSellnow.com

As a licensed professional auctioneer in North Carolina, I find it interesting that Ms. Caldwell, agent for Keller Williams, was at the auction to make sure the amount her client(s) bid, would meet any appraisal requirements for her clint(s) to get financing on any property they purchased. I am also a licensed real estate broker. Most real estate agents are still in the mindset that comps or an appraisal determines the value of a home. In todays upside down real estate market where prices are falling, why would someone buy a home today based upon comps or an appraisal that is several months old? If I am in a room with 50 to 100 people bidding on a home, the bidding process stops when buyers see "value" has been reached. Would an appraiser have a problem with this method of determining value? I know of a gentlemen that paid about $15,000 more for a home than what others thought it was worth because he lived in it as a child and it had "sentimental" value to him. Would an appraisal show this "added value?" I think not. It is the market, viz., a group of willing buyers, that determine market value, not comps or an appraisal. I know that is hard for my fellow real estate professionals to understand as most real estate training teaches differently. The "list and sell" method of selling real estate starts the price high, then lowers it over the coming weeks and months if the property doesn't sell quickly. And I must add, that if and when it does go under contract, in most cases it is full of contingencies that lowers the value even further. Whereas the auction method starts the price low and moves up until true maket value is percieved. And there are no contingencies as the property is sold "as is, where is." Auctioning real estate is the fastest way to establish true market value and to get the home sold fast. For more information on real estate auctions or auctioneering, visit my website at www.canSellnow.com . Ron Taylor<>< President/Broker/Auctioneer The Restorer, Inc. D/B/A Taylor and Sons Real Estate & Auctioneers 252-257-4822 (Office) 252-257-1302 (Fax) www.canSellnow.com

Can anybody tell me where our Constitution allows our government to subsidize a homeowner's loan? Pandora's box was opened when the Feds made a loan to Chrysler many years ago to "save" the auto industry. Are we to be the mother of all governments? Everytime there is a national catastrophe, the media starts its mantra of "what's the government going to do?" Was it really the Feds responsibility to provide housing after Katrina? Was it the Feds responsibilty to subsidize the tobacco industry? Is it the Feds responsibility to pay farmers not to grow certain crops? And we can go on and on... The free market and personal responsibility will take care of itself with regards to the foreclosure crises we are in today. We do not need more government but less government. Ron Taylor President/Broker/Auctioneer The Restorer, Inc. D/B/A Ron Taylor and Sons Real Estate and Auctioneers www.canSellnow.com POB 1083 Louisburg, North Carolina 27549 O-252-257-4822 Fax 252-257-1302