Rich Ex-Wall Street CEO Take a Beating - 01.03.11
Today's Poll: Do you think non-profit's should have first crack at foreclosures?
Yes
No
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iam 2520: (January 04, 2011 11:38am)
Non-Profit (501 c-3) can grant charitable contribution /tax-deductions for "the value received"... Inflated, not deflated then discount for CASH... someone mentioned the FHA's 203(k) is ALSO available for qualifing non-profits...like community churches. They could employee the layity to provide rehab services then sell, under a wrap to parishioners in their local neighborhoods. MLS's have long NOT reported sales concessions...WRONG even 3-6% HAS an effect on the NET to SELLER...but it is NOWHERE, especially recorded sales price. Hank is now a BUYER... call him up to see what he is looking for, you mentioned ONE pole, but didn't I see TWO, or was that just the SmokinMirrors...2 poles ARE better than one. Happy New Year !
Real Estate Nate: (January 04, 2011 5:17am)
A day late but had to post anyway. My owner occupied buyer got beat out by a non-profit that wants to buy the house and land, then sell just the house to a low income buyer. Just what the neighbors want. I'm all for everyone having a crack at REO's but a non-profit should NOT have first look and should NOT be able to compete against an owner occupied buyer.
TrishaBush: (January 03, 2011 6:52pm)
Just discovered this website. . .One word sums it up. . .GENIUS!
JohnAppraiser: (January 03, 2011 4:03pm)
DiveDude you really muist not understand me. The reason I am buying rentals is because I WILL NOT do appraisals for $150.00. I also only use sales that are compatible for the subject but sometimes those forclosures take 90 days to sell and there are no repairs needed, they just sell low. That is the comps that the realtors and borrowers hate and underwriters don't understand. So it them becomes my job to explain the entire workings of my local market to the underwriter.
voltaire3: (January 03, 2011 3:23pm)
The very first time I have ever heard anyone call Hank P. out like it really is. $700mm a lot in GS stock and strange holdings. GS needs to erect a 30 ft statue in front of their offices as a tribute to Hank for saving all those $2mm bonuses for about 1,000 of their employees as well as keeping intact his $700mm. Biggest scam in world history. Came to congress and said he didn't know how big it was, or what it was, just give me a open checkbook and Wall Street will let us know after their commissions.
someguy: (January 03, 2011 2:56pm)
"I feel so frustrated with the mortgage broker industry. I am a real estate investor. I cannot find any competent mortgage brokers that can actually broker a deal!" every RE investor i ever worked with will knock you down over every dollar. Maybe These broker would rather spend thier time with client that do not haggle them like at flea market. Let alone spend hours/days seraching for investors, finding the needle in the hay stack investor for your project then have the buyer moan about fees and cost....i bet if you pay a good commission and have mutal trust doors will open....
louiseowensrealtor: (January 03, 2011 2:38pm)
How can I find the video on the EHLP program that was on the Daily 1-2 months ago. Anyone know if the program has been funded yet?
teresatims: (January 03, 2011 2:28pm)
Whooo Hooo got my "NMLS approved to do business" for my Company, i was sweatin' it a little bit. I don't care what anybody say's you guys crush it everyday! Complain somewhere else. Geeze. And at the guy who can't find a good Mtg. Broker if it's investor product you are looking for not too many options, maybe that's why no return phone calls... Hmmm
Ronbo: (January 03, 2011 1:59pm)
That makes since. When a Relator® is contacted for a BPO the Lender wants the highest and best value. When a Lender is looking for an appraisal to do a purchase money loan, then that is a different story. Lenders are financing and not trying to get a bad loan off their books.
GODLIKE: (January 03, 2011 1:52pm)
OK let me just say it - most of the needy are needy because of lifestyle and job choices not because of specific short term circumstances in their lives. It's easier to live on the dole than get a real job. I know people who are 4-5 generations welfare babies. They don't know a single person who has a job. As has been stated before loans to these people have a very poor performance rating and drive up the late payments & foreclosure numbers. It's PC to feel sorry for them, but that's what allows them to live this way. Tough love baby! Tough love is what's needed.
GODLIKE: (January 03, 2011 1:42pm)
RONBO unfortunately the Appraisers don't have the same instructions. As several have said if they don't use them then they get grilled as to why not. Typically they are instructed to use them as well. In any case, in today's methodology they count. In the good ol' days the appraiser could explain.
Ronbo: (January 03, 2011 1:15pm)
I am a Realtor® and I do a lot of BPO's and I am always instructed NOT to use any "Short Sales" or REO's for comps. I am wondering if appraisers are so instructed. If so non-profits and the needed could benefit without hurting the neighborhood.
W.R.Buchanan: (January 03, 2011 1:15pm)
Yeah: I saw the story on Paulson on Fox Business, and the point was made he's worth $700 mil so $1.3 million is actually more like lunch money to him. These people need to go away. Hard. As far as non profits benefitting off foreclosures I say BS any foreclosure drives the local market down so everybody pays double for that bone they are throwing the "poor". Poor who. the non profits are selling the houses the refurb at full market plus so they are not really non profit any more. Are they? Randy
GODLIKE: (January 03, 2011 1:07pm)
I'm pretty sure when I get through doing my taxes for last year I'll be a non-profit too. When I was incorporating many moons ago they asked me if I was a non-profit. They told me that to be a non-profit all I had to do was zero out the profit by paying someone the money prior to fiscal year end.
reoman: (January 03, 2011 12:25pm)
That's right Mike8307! And in my experience, these "non-profits" are a joke. If you simply expense out, (salaries & other compensation), as much as you bring in...viola! No profit. Are these benevolent organizations trying their best to help the downtrodden or is this just another scam lining the pockets of the insider players? Why can't "we" just let the f/c houses sell, (after being on the OPEN market), to the whomever is willing to pay the most for them? Isn't that the quickest way to establish real market value? With the subprime fiasco and all the gov't/bankster limitations on supply, etc, we haven't seem true real estate market values in this country for at least a decade.
MortgageAngel: (January 03, 2011 10:57am)
Last week a friend of mine told me about a guy in L.A. that gets first dibs to buy properties from B of A, fixes 'em up and then sells them back to B of A.
DFragoso: (January 03, 2011 10:01am)
Ok Guys let's get back to informitive information. Yes Paulson made a ton of money but so what. Anyone of us could have done the same if we positioned our selves correctly. So what does anyone win even if Paulson BK's? I will let you know, nothing! I started watching your show because you brought us informitive information about our business. Please return to facts and figures so we can all make informed choices. These feel good stories lately do not help us put money in our pockets. One last thing, Frank really, buy something from our site? Guy's if your message is good then people will buy. I have your rate watch service and it is good. The daily show, well lets just say I think you can do much better than you have been doing the past few monhts. Get back in there and mix things up. That is when things happen. Where is the next Bank One story? Come on guys step it up!
woodyedwards: (January 03, 2011 10:00am)
Several of you mention that nonprofit sales should not effect a value. I agree except with BOA. They use Landsafe Appraisals, owned by BOA, and the appraiser didn't even go in the house! Better yet, they won't allow me to contest it for 90 days!
GetReal: (January 03, 2011 9:42am)
I feel so frustrated with the mortgage broker industry. I am a real estate investor. I cannot find any competent mortgage brokers that can actually broker a deal! There are so many deals available for residential houses, small-medium-large apartments, commercial properties, etc. and I cannot find any mortgage brokers that can find any source of financing (banks, insurance companies, private equity funds, note buyers, etc.). The only mortgage brokers around are all 1-trick-ponies with only 1 source of conventional financing and they have no incentive whatsoever to pick up the DAMN PHONE (or email) and build a list of financing sources! Real estate is a "borrowed money" business! [email protected]
Divedude: (January 03, 2011 9:34am)
Those comps should only be considered if that particular market is driven by distressed sales. Certainly not if at only 5%. If an idiot AMC diagrees based on what their client tells them, too bad. It's all in how you explain it anyway. If you take assignments for $150, than renting is probably your calling.
bucco: (January 03, 2011 9:31am)
@jplapf You are totally right, having 10% (give or take) inbuyers credits definitely affects the market. Who would buy yours when some one else for the same price is kicking them back 15 grand?
Mike8307: (January 03, 2011 9:27am)
so... let me get this straight. If I have a moderate income family who has saved for a down payment and closing costs. Who qualify for whatever loan best fits their position (FHA, FNMA, VA), who wants a shot at buying the best bargain they can... They can be squeezed out of the bidding process by a non-profit, in a non-compete process, and all sanctioned by the government? And THIS is the FREE MARKET SYSTEM?? No.. this is Government (acting as ACORN) funneling taxpayer money to achieve social justice. When does this nonsense STOP !!!! Happy New Year everyone.. just like the Old Year.
GODLIKE: (January 03, 2011 9:14am)
You know I'd love to buy something off your page, but email after email has gone unanswered by you guys as I try to buy a little TBWS video program from you guys.
jcollins: (January 03, 2011 9:13am)
FGONCHER: Have you contacted your Assembly or Congres Rep.? I would Imagine that you have been fighting this for a while. Use your Rep. to put the pressure on them.
T Bone: (January 03, 2011 9:12am)
I would like to begin the New Year by thanking you for all you do Frank and Brian! Much as people, when they actually got a look at Monica Lewinski said "No way! She's not hot enough", those closest to Bill Clinton said actually, she's the perfect person to do what she did. So too are you guys the perfect representatives for the mortgage industry. I will be entering daily rants about the mortgage industry and they will be numbered so that I/we can refer to them in the future.
fgoncher: (January 03, 2011 8:56am)
I have been writing loans in NYS since 1988. NYS has had my licensing application since 9/21/09 I am still not approved. I am listed "pending-review" with no outstanding license items open per NMLS. NYS will not report me as approved to NMLS. NMLS is now reporting in consumer access that I do not exist. This is a problem as Wells Fargo Wholesale will not take loans from me as I am not listed in the NMLS consumer registry. The fact that I am waiting over 12 months for approval seems to be of no concern to anyone but myself. The Bank Dept., Wells Fargo, and NMLS each point the finger at someone else, but no one is willing to help. Effectively I am cut off from my wholesale partner through apathy and incompetience. It takes several phone calls to get NYS banking dept on the phone only to be told, "We'll get to it when we get to it." May I should call our new governor, Andrew Coumo, for help!
david.romero: (January 03, 2011 8:19am)
Is this thing on
JohnAppraiser: (January 03, 2011 7:52am)
I DO fight them because I won't send what I cannot defend in court, but it is getting old being the lowest paid and most bullied part of the transaction. House prices fall, loans go south, economy is in trouble??? What's the solution??? Create the HVCC (a good idea with bad consequences) and reduce all appraisers compensation by 30-50%. Then make it 30% harder to complete assignments. I feel like I have to prove value beyond a shadow of a doubt lately. That is why I now have rentals and want to get more. So when appraisers are required to do 10 hour reports for $150.00 and get sued once a year I can opt out of most assignments and only work with a few companies that are fair. I work alone and do not farm out my appraisals to several trainees like many other appraisers so I don't make more from volume.
Ezradams: (January 03, 2011 7:26am)
Appr#1 and JohnAppraiser: It's a shame appraisers are allowing lenders and AMCs to dictate what you do, but transactions as described by Frank and Brian clearly do not fall under typically motivated sales and should not be used as comparables. (These are not your everyday short sale/REO/Foreclosure properties, they are something completely different.) I would assume that in these cases, the sales price is probably set by a state or county authority and offered only to buyers based on income levels. There is NO WAY these properties could be used as comparables. It is doubtful they will even find there way onto the MLS. Using a sale like that would put your appraisal license in jeopardy. It's not unusual to see these subsidized properties pop up once in awhile in NJ. As an appraiser it is your responsibility to to recognize what it is....not open market. Don't let the lenders and AMCs bully you!
JohnAppraiser: (January 03, 2011 6:44am)
I am also an investor and flip houses and now have rentals on the side. I WILL NOT invest in a neighborhood where there is a lot of "sweetheart financing" and non profit sales because I simply cannot compete with FREE or almost free houses. How can I sell my apple for $135k when the ones down the street are $110k and they set you up with no money down financing, grant money etc. I have appraised a few homes in what I call "Grant Only" neighborhoods full of all brand new nice little homes and every home sells for one price, $165k with everyone getting $28k from the state and $50k from the parish/county. Can you compete with that? Think any builder is going to build and sell a house for near that much as a regular sale? Redistribution of wealth at it's finest.
mmt110: (January 03, 2011 6:41am)
Some foreclosures are in need of substantial renovation. But that fact alone does not warrant putting every foreclosure offered for resale into a non-profit only offering status. @pamadams - I've seen a non-profit community rehad like you mention and it's a good thing. But many of HUD's foreclosure resales have a non-profit only offering status 1. in areas that are not blighted nor 2. is the property in horrendous condition. Is a better idea to have this be done based on census tracts or actual property condition reports instead of a blanket exclusive offering to non-profits? There is a neat program called the FHA 203(k) that owner occupants can use for purchasing a property that needs renovations.
JohnAppraiser: (January 03, 2011 6:34am)
I hate to admit it guys but we do use those as comparables. Truth is that in a sketchy neighborhood those usually are a signifigant portion of sales and cannot be ignored. OR.... even if they only represent 5% of sales in the neighborhood and one of them is the most recent guess what..... we will need to use them due to lack of comps. Underwriting has changed appraisal. It is no longer "My opinion of value". It is now "My opinion of value based on lender and underwriter guidelines and allowable comps used". I get stips left and right all day about "The MC form showed 4 recent sales within 90 days, you only used 2 of them". It was because the other 2 were forclosures or a short sale, someone moving and willing to take whatever they can get within 30 days in a 120 day market, etc. We also need to remeber that the buyers know what's up and they see that some houses sold for a lot cheaper. That makes them hold out to get a better price too. NO ONE wnats to be the guy who paid the most.
pamadams: (January 03, 2011 5:54am)
I list and sell to a non profit. They should be given first preference to foreclosures for 2 reasons #1, our non profit sells only to owner occupants, not investors, which helps keep the property off future foreclosures #2, we totally rehab these homes and sell them at market, not discounted values. We have been successful working in very blighted areas of abandon and foreclosed homes and slowly turning them to owner occupied neighborhoods. We are truly the best option for many of these REOs. Many of the REOs we have been out bid have returned more than once as future foreclosures. In the 7 years I have been involved, only one family has lost their home to foreclosure. The neighborhood has a great sense of community and is thriving.
Broker in RIC: (January 03, 2011 5:44am)
I was hoping that you guys would not forget to mention that he had stripper poles in his bedroom. Nice technique, Hank! :)
Appraiser Kat: (January 03, 2011 5:16am)
Thanks for the new music... your old intro had me throwing the head phones at the wall too many times...
ChicagoLen: (January 03, 2011 4:37am)
They COULD create a category for "non-profit owned" just as there are now places to indicate the "green" level of a comp, or whether there is a bath in the basement. The question is, will they? Since many MLS systems are run by agents and brokers, more so than appraisers, I don't see it happening any time soon.
jplapf: (January 03, 2011 4:30am)
In Phoenix, these properties are listed on the multiple listing. The amazing thing is they are providing $15000 in down payment/closing cost assistance along with a 3 year warrantee paid with your tax dollars. I have never seen an appraisal adjustment for "special or creative" financing, even though every FNMA/FHLMC appraisal defines market value as: the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. These properties are used as comps. If a 10 to 15% concession of the purchase price does affect property values, then I guess nothing does. How many more buyers qualify using the reduced mortgage provided by this assistance? This is another example of the government redistributing our tax dollars to influence the value for future home owners. Only in America!!
appr#1: (January 03, 2011 3:52am)
Get real ezradams, Do you think that the MLS is going to have a catagory to indicate that it was a sale by a nonprofit?!
Ezradams: (January 03, 2011 3:16am)
Guys, Any subsidized sale by a nonprofit would NOT be considered as a comparable. The property would have to be listed (exposed) on the open market and available to the general public at market price to be a usable comparable sale. So, the particular scenario you are discussing is not pertinent and would not affect the market.