Comments for HomeForSure

Comment on Selling out the Landlords by Christopher Medley

Christopher Medley — Tue, 17 Jan 2012 21:57:30 +0000

So far, there are rumblings that programs are in the works where this will happen, but nobody has yet put a timetable on it from what I’ve read. My guess is that when the banks do begin to rent out some of their holdings, they will probably start quietly so as not to upset the investor pool too much, which accounts for a lot of the REO purchase action.

Comment on Selling out the Landlords by Dave Smith

Dave Smith — Tue, 17 Jan 2012 21:51:50 +0000

So I am to understand that banks will now get into the property rental/management business? Your comment regarding banks don’t treat investments like private investor is true. Banks are not keen about being property owners let alone becoming landlords.

Comment on Same $@#%, Different Score by Borrowers, Brokers and Banks Playing the B-B-B-Blame Game

Borrowers, Brokers and Banks Playing the B-B-B-Blame Game — Mon, 16 Jan 2012 22:23:22 +0000

[...] made. Perhaps the answer isn’t to lower the risk tolerance of lenders and their overlords, but to look for ways to help them redefine risk. Filed Under: Featured Content, News, Views, and Tools Tagged With: bank, blame game, borrower, [...]

Comment on Government Intervention in Real Estate: Whose Team are YOU on? by sebfrey

sebfrey — Tue, 10 Jan 2012 22:11:31 +0000

I think that is among the least of our worries, but thanks for your sharing your perspective!

Comment on Government Intervention in Real Estate: Whose Team are YOU on? by stevor

stevor — Tue, 10 Jan 2012 20:51:31 +0000

The way we have some “leaders” with a communist tilt, I worry that if the government backed too many homes, they might try to fulfill the Communist Manifesto where nobody has Private Property.

Comment on Realtor Association Takes No Jive by Christopher Medley

Christopher Medley — Wed, 04 Jan 2012 15:52:02 +0000

I can’t really see it happening either, because in order to do so they would by implication be admitting that their standards aren’t up to snuff in the first place. And as we’ve seen, admitting they’ve blown it isn’t exactly something the NAR enjoys doing.

I went through the licensing process in California as well, and as I think back about it I had to learn a lot about laws of housing and real estate, but relatively little about the rules and ethics that governed the practice of actually selling it, other than obvious stuff like how to avoid overtly racist comments when marketing a home for sale. This of course was the licensing process through the California Department of Real Estate (DRE), which has nothing to do with the NAR and their continuing education protocol. Much of what I learned about the practice of real estate came from my first brokerage, where my learning experience took the “watch how I do it” approach that is unstructured and leaves holes in one’s education.

Either way, it seems to me that the end result is that many agents aren’t entirely sure as to how far they can and should go in terms of advice or counsel, while many buyers and sellers aren’t sure who they can trust for sound advice. Working to make these elements more clear would help to ensure cleaner transactions for everybody involved.

Comment on Selling out the Landlords by Christopher Medley

Christopher Medley — Wed, 04 Jan 2012 15:32:28 +0000

You bring up a couple of interesting points.

Yes, landlords like yourself will definitely be able to out-perform the banks in terms of rental service. However, banks aren’t looking to cash flow their properties like investors are, meaning that they will likely look to make up for their lack of service by undercutting area rents. One need only to look at how banks market and sell their REO holdings to understand how they would likely market their rentals. And just like REO buyers, renters in many situations would be willing to put up with a bit of inconvenience if it means saving potentially thousands of dollars over the life of their lease.

The bottom line is that the banks won’t have the same considerations for the investment as a private investor would – so no matter how you slice it, having the banks rent out foreclosure homes is a formula for lower rents.

Comment on Do we have Flipper to Blame, or to Thank? by sebfrey

sebfrey — Wed, 04 Jan 2012 15:27:47 +0000

I think it is good to limit speculative borrowing (that is, limit loans made to flippers or “investors” with a buy-and-hold strategy), AND I think it is good to waive the anti-flipping rule. Let’s remember that a large percentage of flippers actually buy with cash – that’s one way they can maximize their ultimate profit, because cash buyers can sometimes get a discount if they play their cards right. But limiting loans to less-well-heeled flippers who need risky loans to make their deals – that’s smart policy, because as we have seen, so many of these deals go bust. I have always been confused by the FHA’s anti-flipping rule, though – what does it matter if you’re buying a newly rehabbed house from a flipper? I guess the concern is that it smacks of a less-than-arms-length’s transaction – but distressed sales in general are not considered arm’s length transactions, and there’s certainly no problem with getting a FHA loan for any of those purchases.

Comment on Realtor Association Takes No Jive by sebfrey

sebfrey — Wed, 04 Jan 2012 15:17:44 +0000

As a Realtor® myself (and, of course, a Real Estate licensee, which is a requirement to be a Realtor®) I’d like to weigh in here. Agents – at least in California, where I practice – have a fiduciary duty to their clients, in short, to employ the highest standard of care for their clients. While an agent is just that – an agent – and it is the buyers who ultimately made often-times disastrous buying decisions – it is not a stretch to say that some agents pushed buyers to bid higher or buy bigger than perhaps they should have. I think that’s a problem which persists, and I don’t think it can be solved – but a step in the right direction would be to strengthen the real estate licensing standards to raise the bar for practitioners – I would love it if the National Association of Realtors would champion this cause, but I can’t see it happening.

Comment on Selling out the Landlords by Roberto Ribas

Roberto Ribas — Wed, 04 Jan 2012 05:31:35 +0000

Your logic is very flawed. EVERY home that doesn’t fall down will eventually be occupied. If a bank forecloses on a homeowner today, true they create a new renter. BUT they also create a foreclosed home which is sold. The person buying it either was a renter before thus removing one renter from the market, or is an investor who rents it out. 1 new renter – 1 existing renter = 0, or 1 new renter – 1 new property to rent out = 0. Take your pick.

So, it really doesn’t matter if banks rent out the home, the only difference to the law of supply and demand, is that a bank is renting the home rather than an investor like me. Banks are stupid, slow and cumbersome in everything they do. I can paint and re-floor a rental in 7 days, do you think banks can compete with me in remodeling price when they hire contractors? I advertise my rentals on craigslist, hotpads, zillow, etc. and drive out to meet prospective renters myself. Do you think banks will be as mobile and flexible as I am?