Let me first say, it usually takes quite a bit for me to let go of a money making opportunity. I mean, if there are problems with a transaction, I will always go the extra mile, or extra hours, to get the job done. I pride myself as a problem solver, and over the past 16+ years have repeatedly saved deals from the graveyard, when it would have been easier to let them die. Creative solutions to transactional problems are just part of the job.
However, mortgage companies have displayed a new level of ineptitude, and quite frankly, I'm done with dealing with them! I understand that mortgage companies are very busy dealing with all the foreclosures, and the fallout that is caused by them. But these idiots get exactly what they deserve.
I have had two transactions in the past 90 days, fall apart because the Mortgage company, just couldn't get to it! WHAT? They simply didn't have the time to deal with these two transactions. It's understandable, that is, if there is a short fuse on something they might have some issues with manpower to deal with an emergency situation. But here is the rest of the story.
The first transaction was presented to the mortgage company in early November 2007. It was a scenario that a foreclosure proceeding was started. We offered them a contract to "unload" the property for a fair value. Seems pretty simple. They had a couple of options; Say YES, let's go, make it happen, we don't want the property on our books. Or, NO, we don't feel the value received from this contract is sufficient, and as a company we think we can do better by taking possession and selling the property on our own.
Well, neither of the options happened. Instead, no response was the preferred reply. Literally, dozens of calls were made, with a substantially similar response each time. "We don't know yet, we'll get back to you soon." Soon to these idiots, means NEVER! The beginning of January 2008 was too long for this buyer to wait out the "highly trained staff" at XYZ Mortgage Co. to give us a simple Yes or No. Heck, a maybe would have been OK. My guess is, the delays from big bank USA, is going to cost it's shareholders, well over $30,000!
Transaction number two is substantially similar. Different mortgage company, but it seems the same training. "Our Policy is no answer until everyone is so pissed off, that they walk away, and we don't have to deal with anyone. We can simply sell the property off a major discount, and write off the losses, Hell, who's going to know how our ineptitude is responsible for big time financial losses!" We are nearly 60 days into the sit and wait process now, and I'm quite sure, the deal will fall apart before they get us a pretty simple "YES or NO" Unfortunately, this deal is above market value, and should be a no brainer. Guess what business school rejects? This little delay will cost you a minimum of $30k-$50k, when you try to wholesale it to the investor community!
I could continue to rant for many more paragraphs, but will comment on how I would like to see the problems dealt with and the bottom feeding "foreclosure specialists" in a future post!
I will leave you with this, Don't become a shareholder in any mortgage companies, the management and training are a recipe for disaster (unless, of course, the real estate market starts appreciating at double digit rates again!)
All investors looking to take advantage of the Mortgage Company Mensa's, contact the Get Home Denver Team today!
Feel free to comment on the mortgage debacle!
Did you hear the latest news story, about a "Mystery Buyer" closing on the Sun Microsystems property between Denver & Boulder? Well it must be a very qualified buyer, because it's estimated the property is worth $60++ million!
What it tells me is the big dollars from corporate america are moving to Denver for a reason. They believe, as do I, that the local economy, work force, standard of living, real estate market, are better HERE, than most other places around the country.
The real estate market benefits substantially when corporations, like this "Mystery Buyer" invest in our local economy!
Have you thought about investing? If so, get on our "wholesale property" weekly e-mail list. We provide a weekly listing of great properties, at Wholesale Prices. To get qualified to be on this list simply contact us today!
Bob
bob@gethomedenver.com
www.GetHomeDenver.com
Well, many have said the mortgage debacle the US has been experiencing was the result of a "perfect storm" of sorts. Lenders being shady, and getting clients into less than suitable loans, the slowing of the real estate market, and overall economic uncertainty. Usually any one of these would not have precipitated such a dramatic increase in the foreclosure rate, but together, BOOM! The house of cards is falling.
The flip side is another potential "perfect storm!" This time it will be the opportunity of a generation to buy real estate and secure a financial freedom that most only dream about. The coming together of a huge number of below market value properties hitting the market, interest rates that are VERY attractive (currently qualified investors can get in for less than 7%), and our federal government doing whatever it can to stimulate the national economy.
What this means is for the next year or two; The people with ablility to buy real estate while it is down (NOW!), will be able to get a great deal on both purchase price, and interest rate. While the rest of the population, loses their homes, rebuilds their lives, and then jumps back into the real estate game. This will take a couple of years, but when it happens, they will drive the demand back up, and inventories down, such that appreciation will be had by those able to buy now.
There is an old saying, "The best time to buy, is when everyone else is trying to sell!" I think you'll agree, there have been very few moments in our lifetime, when this many people were trying to sell.
For more information on how to get into the game, contact the Get Home Denver team.
First, we define wholesale pricing as 10%-50% below pricing levels in 2006 or earlier. With this in mind, there are many great options for real estate buyers RIGHT NOW!
Anyone who has been looking to move into a new home (and not sell their current property) or those interested in purchasing property for investment purposes, this is the time to act! We have a window of less than a year to get into the best "Rich get Richer" market in 2o years (see earlier blog post http://gethomedenver.blogspot.com/2008/01/rich-get-richer.html#links)
Interest rates are once again down to historic lows, and bargains are available for the taking. We have sold a number of great deals in the past 90 days, but are running across more than we are able to fill!
So, here is our solution, we are going to present approximately 10 deals per week to those who are interested. We will have a pro-forma/analysis created on each one, and every Monday they will be emailed to anyone who is interested! Then, on a first come, first served, basis, we will fill these deals to those who are interested. NO PRESSURE, NO STRESS! You will simply receive the email, then choose if you would like to receive more info, visit the property, or pursue any of the available deals.
Currently, we have individual investors, groups of friends buying as investment groups (through Limited Liability Companys LLC's) and those looking to buy their first home, or new home without the sale of a property. If you or anyone you know is interested, please contact us to get more info about how to get prepared for our offerings. In order to receive the email, you will need to have all of your legwork done, up-front!
We anticipate this email to go out to 50-75 clients weekly. If you would like to be a part of this program, please let us know. Only pre-qualified purchasers are eligible, as these deals go fast. The ability to move quickly is often necessary to obtain the deeply discounted prices (many investors are scooping these up, so delays often mean the deal will be gone!)
Once again, now is the time. If you are interested, want more info, help with creating your own investment group, a copy of a sample pro-forma/analysis, or have any other questions, contact us today, via email is preferred.
If you are not interested or just a little curious, subscribe to this blog for updates, and great real estate info, then, please pass this along to your network of friends, family and co-workers.
Bob Schenkenberger
bob@gethomedenver.com
303.770.1180
Check out the article in the Rocky Mountain News...I'm wondering if they are responding to my last blog post???
The Denver-area housing market is looking strong compared to many other places in the country, according to a national report released today.
View article...
Everyone is screaming the sky is falling! The national and local press, "reporting" the facts, when they see fit, and not reporting them when they don't! Sure the market is slower, appreciation is non-existent in most areas, and foreclosures are screwing up a large scale recovery.
However, Real Estate is a localized commodity. Every market is different. Colorado has been in a slow market for over 5 years! All while places like California, Florida, and Arizona were experiencing double digit annual appreciation. The country will not recover all at once. It will happen market by market.
Currently the Denver market is absorbing the foreclosures and inventory faster than it has in over 2 years! What is still a weak market, IS GETTING BETTER!
Whenever you have a weak market, it is also a huge opportunity. The Classic rich get richer market is upon us. Those who have stable income, and employment, are currently able to buy properties for 10%-40% less than what they sold for only a few years ago. Those with the ability and foresight to buy and hold for a few years will be selling properties back to those who don't for a tidy profit! All the while renting these properties to those, who can't or won't buy today!
For complete listing information on every property for sale in the Denver area, go to www.GetHomeDenverTeam.com
