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Good morning Superstars.

Banks prohibited from entering into real estate brokerage and management businesses? Right. And pigs fly.

In 2001, the Federal Reserve Board and the U.S. Treasury Department proposed rules allowing national bank conglomerates to engage in real estate brokerage and management. The rule would have reclassified these activities as financial in nature.

The National Association of Realtors was dead set against this and used their powerful lobbying force to fight.

NAR's position was that.....

• "Allowing large, national banking conglomerates into real estate would create anti-competitive and anti-consumer concentrations of power within the industry." Read full article

On March 11, 2009, President Obama signed into law the FY2009 Omnibus Appropriations Act that permanently prohibits banks from entering the real estate brokerage and management businesses.

Fast forward to today.

When was the last time you did a Real Estate transaction that the Banks didn't control? In my market area of Poinciana Florida approximately 65% of all real estate transactions are either REOs or Short Sales. In both cases the Banks are in control.

The Banks control the real estate commission by limiting how much we can charge and how we can charge. The once "always negotiable" commission is now set at 6% whether we like to or not. Anti-competitive and, in my opinion, a direct violation of Sherman Anti-Trust Laws.

Banks are also.....

• Interfering with Fiduciary relationships.
  
• Interfering with contracts.
• Taking away the rights of a property owner by placing restrictions on who can purchase real estate.
• Restricting when a new owner can resale the property.
• Restricting who a new owner can rent to.
• Dictating how the home is sold. Think auction.com
  

Banks are doing everything they can to make selling and purchasing Real Estate difficult. Banks are making up the rules as they go along and most make no sense whatsoever. So agents, buyers and sellers are thinking of ways to skirt around these unreasonable rules. Problem is.....we can't act illegally or unethically just because the bank is doing so.

Banks prohibited from entering into real estate brokerage and management businesses? Right. And pigs fly.

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• Qualifying The Seller
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• Negotiating Techniques 1
• HUD1 Tips
• Escalation and Communication Tips
• Disputing Bad BPOs
• Cash Contributions and Prom Notes
• Negotiating Junior Liens
• Lead Generation
• 10 Short Sale Mistakes
• VA, HAP and FHA
• Getting Short Sales Closed

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Whether you are dealing or have dealt with a short sale, foreclosure, BK, delinquency on your mortgage payments, or have a number of late payments elsewhere, your credit score is damaged and your finances are most likely in lockstep. However, recovering with bad credit will be difficult as interest rates inflate the cost of living and affect various other facets of your life and naturally you get caught in a downward spiral of poverty.

The best example of this is a home mortgage. Do not even consider pushing for another home without rebuilding your credit prior. The figures below will show you why.

The Ding Of A Delinquent Payment, Short Sale, Foreclosure, and/or Bankruptcy

Take a look at the impact of each situation on your FICO score. As you can see, regardless which consumer type you are, you will have incurred a significant ding on your credit score.

Can You Obtain Credit?

There are great deals out there on the housing market but a big problem these days is the inability for homeowners to obtain credit to finance their home. Large agency investors such as Fannie Mae changed their minimum credit score requirement from 580 to 620. Anything under 620 is considered high risk. Your local bank may require a credit score of up to 660 or higher. The question is, even if you were able to qualify for a mortgage, should you finance with sub-par credit?

A Bad Credit Score Will Cost You!

These figures are based on rates from 9/12/11. The example below clearly shows you how much you will be affected from obtaining a mortgage without an outstanding credit score.

How Can I Quickly Rebuild My Credit Score?

Whatever situation you may be in, the longer you are stuck in a bad credit rut, the more exacerbated your financial situation may get. Here is how to prepare: If you have a low credit score and/or want to prepare your credit situation to qualify for excellent loans for your next home purchase, by the end of this article, talk to a Lexington Law credit specialist. I have personally researched and found them to be the absolute best company to work with in rebuilding credit scores. Here is a direct number provided through the short sale blog for a free consultation: 888-586-6113 or you can apply through their website.

Hope this helps!

Peter

Ahhhhhhhhh!! The joys of working and processing short sales! Some of you Super Stars may understand the motive for today's post. Others may just be on the other end of my message. I love short sales. No, I mean I truly enjoy the art and skill necessary to do this amazing job.

I love it so much that I've begun doing it for other Realtors who either don't have the time and/or skill. I do it for FREE and I truly take great pride in what I do. However, there are days when you get hit over the head and taken for a ride in this amazing business.

So I been working a short sale with Aurora for the last three months. It's a Freddie and it's been a dooooosy. We have the second with United Guaranty who then gave it over to DCS (Another story). So after calling, working, crying (JK LOL) smiling, postponing the foreclosure sale and everything else we finally got it to a negotiator only to get a call from the Realtor to say "Hey, I started calling this week and I have APPROVAL in hand".

What...!! Now it may be my own self-conscious but I just feel like this feeling of "I got it done quicker than you". Don't get me wrong, I'm for the borrower and whatever whenever to get them to avoid foreclosure. It's just that the APPROVAL is like that Holy Grail of processing the short sale. It's like running a marathon only for them to say "hey we stopped the race, come back tomorrow".

So great job for the Realtor and borrower and I'm very happy. Once again......The joys of short sales!!