I'm curious if anyone has heard of such a thing. I was talking with some insiders and they mentioned that there is a list called the "Cruel Inspection List" it's an industry wide list that has the names of companies, Realtors and Brokers doing shady business and/or suspicious.

 

Has anyone else heard of this?? I'm curious.

 

Thanks

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Wow that is kind of problematic although it seemed to work to your advantage in both cases.  I always wonder if I will end up on a list for being a pain in rear on my files.  I had one bank say that they would not work with me because I told them that pricing a home according to a loan balance was irresponsible and would ultimately cause them to lose more investor money.  They didn't like that and said they wouldn't work with me.  I told them it wasn't their choice and they ended up "working with me" anyway and I closed that file.

 

In your case, I wonder why they objected to those agents and what their reasoning was.  Troublesome after all we are working for the seller and the buyer -- not the bank.  Not sure if I would even want their vote of approval.

Rick Stuart said:

I don't know whether it is industry wide list but I have received 2 short sale listings because the servicer refused the file submitted because in one case, the realtor was unacceptable to the servicer and in the other the brokerage (a small local brokerage) was unacceptqable to the servicer.  Both servicers advised the borrower that they would have to submit with different listing agent and brokerage before they would review the short sale request and in both cases I closed the short sales.

In response to Rick's comment - it seems like the banks should be required to explain why a particular Realtor isn't acceptable or what their criteria is.  If anyone knows more about that I'm interested to learn more.

Wow, interesting. So I wonder if there is some truth to what was told to me. I also agree that if this is the case and Brokers and Realtors are placed on this list you should be told why.

Rick Stuart said:
I don't know whether it is industry wide list but I have received 2 short sale listings because the servicer refused the file submitted because in one case, the realtor was unacceptable to the servicer and in the other the brokerage (a small local brokerage) was unacceptqable to the servicer.  Both servicers advised the borrower that they would have to submit with different listing agent and brokerage before they would review the short sale request and in both cases I closed the short sales.

Never heard of this...makes sense.  I'm sure the lenders see patterns in some transactions.  Such a predatory industry, especially negotiators on the lending side, when they sub contract out.

 

 

Would it make sense to you if you knew that Core Logic is OWNED BY CHASE??? Core Logic is the appraisal and financial services company that orders all of Chase's appraisals...Do you understand why HVCC exists??? It has little to do with appraisal malfeasance and more to so with a and in the appraiser's pocket...

 

This whole thing is about manipulation by the Bank's and servicer's.. OH, and did I forget about money??? They say that WE are responsible for 31m in short sale fraud??? What about all the banks and servicer's that sat on their assets and lost that and more by doing nothing except sit back on their fat assets and collected their servicing fees and then collected more when they foreclosed??? PLEASE...this whole set up stinks like a dead rat...

 

 

In one way or another... this all ends up being related to the flaws in the way the short sale system is to begin with... 

 

It's really not that complicated to approve or deny a short sale... 3 basic simple steps if the decision makers used common sense...

 

1) Qualify the sellers such as the hardship and financial situation with factors such as if the Sellers can afford the mortgage and would qualify for the loan today. (Not too hard to do... my preferred lender can figure out in about 30 minutes if a buyer is good or not..)

 

Accept or Deny the request... don't waste everybody's time... Go to Step 2

 

2) What's the range of the current market value for the home in today's current market? (Is it really that hard to figure out?)

 

3) Let everybody know the minimum net proceeds that are acceptable to close the deal and let the agents work on meeting that minimum.

 

It's not Rocket Science...

 

The amount of time being wasted to move the market forward and get it out of the mud with the current short sale system  is the real fraud... Servicing fees are getting racked up and they seem to really get racked up when Fannie & Freddie are the owners.

 

Which can somewhat explain the claims made by one of the above mentioned parties that short sale fraud was Rampant in the industry and costing gazillions of dollars. (More like an excuse to CTA for the way they have handled them at the expense of billions of U.S. Taxpayer Dollars...)

 

And if I just made the list for stating the truth....

 

Oh Well...

Nice Reply Jan...


Glad somebody read and understood that article and what it really means. You mention the real problem... and the powers to be for the NAR just let these claims of fraud slide without even questioning the entities making these claims and where they got their numbers from.

 


Jan Sanderlin said:

Would it make sense to you if you knew that Core Logic is OWNED BY CHASE??? Core Logic is the appraisal and financial services company that orders all of Chase's appraisals...Do you understand why HVCC exists??? It has little to do with appraisal malfeasance and more to so with a and in the appraiser's pocket...

 

This whole thing is about manipulation by the Bank's and servicer's.. OH, and did I forget about money??? They say that WE are responsible for 31m in short sale fraud??? What about all the banks and servicer's that sat on their assets and lost that and more by doing nothing except sit back on their fat assets and collected their servicing fees and then collected more when they foreclosed??? PLEASE...this whole set up stinks like a dead rat...

 

 

I worry about the list being comprised of agents who aren't willing to put up with the status quo.  I do everything ethically, but I won't do business the ways these banks do - and just accept whatever the negotiator tells me.  They are slow, inept, have poor business practices, lack the insight to make a logical business decision and are apathetic to the sellers' situations.  They received all the TARP money, bought mortgages from bankrupt lenders for pennies on the dollar, have the tax write offs and yet still can't get their act together to do anything to stop the bleeding.  Their continued incompentance hurts our economy.  They turn down short sale transactions in favor of foreclosure and then sell them 90-120 days later for 65% of FMV.  Fanniemae and Freddiemac are among the worst offenders.

 

I know that the guys who do the 4610 Power Hour got a lot of flack from Chase for pushing back and posting video blogs.  They were threatened with lawsuits etc just for telling the truth.  Very sad.  This is the kind of thing I worry is on the blacklist.

Let's keep in mind there are a lot of agents out there "posing" as short sale "experts".  You can hear it when you speak with customer service or negotiators, they are just waiting for us to say something ridiculous or to have to guide us through each step.  Even worse is when a buyer of mine wants to purchase a short sale and I have to explain why, after interviewing the agent, I wouldn't waste a minute of my time on it because it will never close with this "expert".

 

However, I recently attended a Chase "symposium" where they offered to put as as short sale agents on their "list of preferred" if we offered to send their mortgage division our buyer business. If you look you will see this happening with many banks/lenders.  That way they can reduce commissions and guide the process exactly as they want it, while holding their preferred agents "hostage". They will promise the world to their mortgagees in default if they will use their "preferred agent".

 

Also, Chase has a new program where they promise once the offer is submitted they will give a decision in 10 days.  However, they insist on negotiating with the 2nd.  Seriously.  How would that be in my distressed seller's best interest?

Rick Stuart said:

I don't know whether it is industry wide list but I have received 2 short sale listings because the servicer refused the file submitted because in one case, the realtor was unacceptable to the servicer and in the other the brokerage (a small local brokerage) was unacceptqable to the servicer.  Both servicers advised the borrower that they would have to submit with different listing agent and brokerage before they would review the short sale request and in both cases I closed the short sales.

American Homeowner Preservation was blacklisted by ING, although they referred to it as their "exclusionary list": “ING DIRECT will also be adding your company to our exclusionary list as your company strictly finds investors to keep sellers in their home, while the bank takes a significant loss.  This is against ING DIRECT’s short sale policies and guidelines, and as such you will no longer be able to work on this short sale file or any future ING DIRECT accounts,” Adam Agostinelli of ING Direct Retail Asset Management advised in an email to AHP. Read more at: http://shamethebanks.org/jorge/ing-direct-blacklists-american-homeo.... ING received abit of a press drubbing as a result (http://blogs.reuters.com/felix-salmon/2010/12/29/vindictive-service...).

 

 

Suzanne I feel exactly the same way.  Going into battle every day is exhausting, especially when the other team doesn't play fair.  Okay not fair, they outright lie.  That is, until you catch them doing something unlawful  Recently a BIG lender was servicing the 1st for Freddie and held the note on the 2nd.  My seller was current (relocation scenerio), and gave 2500 to Freddie, and 2500 to the 2nd to get that full settlement language and move on (yes no matter what they call it, a "contribution" is just a bribe for that release language).  The negotiator said Freddie will not allow any contribution to the 2nd as they want it instead. She said in an email  "Just take it off the HUD and we'll work it out under the table."  I replied in an email:" It would be in violation of RESPA to keep the contribution to the 2nd outside of closing and off of the HUD. This is also considered loan fraud.

"

Well dontcha know I called her supervisor and her supervisor's senior and left messages, and also emailed the negotiator's email and my response.  Within 1 hour the 2nd was approved with full release.

 

This is the stuff we deal with every day.  And WE get blacklisted??? 



Suzanne Kensington said:

I worry about the list being comprised of agents who aren't willing to put up with the status quo.  I do everything ethically, but I won't do business the ways these banks do - and just accept whatever the negotiator tells me.  They are slow, inept, have poor business practices, lack the insight to make a logical business decision and are apathetic to the sellers' situations.  They received all the TARP money, bought mortgages from bankrupt lenders for pennies on the dollar, have the tax write offs and yet still can't get their act together to do anything to stop the bleeding.  Their continued incompentance hurts our economy.  They turn down short sale transactions in favor of foreclosure and then sell them 90-120 days later for 65% of FMV.  Fanniemae and Freddiemac are among the worst offenders.

 

I know that the guys who do the 4610 Power Hour got a lot of flack from Chase for pushing back and posting video blogs.  They were threatened with lawsuits etc just for telling the truth.  Very sad.  This is the kind of thing I worry is on the blacklist.

I have heard that Bank of America has a report card for each agent they have done business with. 

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