If it were not for the experience of the last 4 years, I would disagree with the below blog post. In theory, banks are just like any other owner of homes. As such, banks could rent out and manage homes to the American public.
However, we have had the last 4 years' experience of being the go-between between, on one hand, homeowners in distress and losing their homes, and, on the other hand, banks that make it beyond difficult to approve short sales, loan mods, etc. Banks' mandated profit motive on behalf of their owners/shareholders comes without the personal conscience that individial homeowners or investors have. Banks' employees, while personally recognizing hardship, seem to think that doing their jobs does not allow them to consider win-win scenarios for the individual on the other side of the contract.
As for the effect on the real estate agent industry, I tend to agree with the following blog. Please read on...
One of my favorite sayings is that "as long as people still want to live indoors, I will have work".
Not so fast Buck-o.
The banks have been trying to do everything they can to muscle in on the one business where an American can work hard and support their family. As long as you don't have a felony conviction you can make a living in this business. That's about it. No college degree is required, no high school diploma, you can be challenged in any number of ways and make a decent living in this business. Back in the 80's one of the biggest producers in Berkeley was wheelchair bound. The title company I worked for moved their office so that there were no more stairs and that agent had access to their office. I've known many agents with various challenges who have been able to make a good living in this business. It's one of the reasons I love this business. I don't love the banks messing around with it.
I don't love the bank's lobby money determining what happens next. I've been hearing for a couple of years now that the banks are going to rent out their REO's. I have hated this idea from Day One. Their business is banking. They horned in on the securities business back in the 90's and look what it got us. Now Bernanke has come out and suggested that the banks rent out their REO's. I am completely opposed to this idea.
As far as I am concerned this is the last step to the corporations turning this country into a banana republic.
The Supreme Court of the United States declared corporations had the right to make political contributions in Citizens United v. Federal Election Commission. Corporate personhood has gone back to 1819 and the original legislation had some legs. Corporations were responsible for their actions as if they were a person, thereby making their contracts enforceable. Good thing. Tons of corporate money going into the elections? Not so much. But I think every person should get one vote. I have worked for corporations who have sent out letters and emails telling me how to vote. The results with me are always counter intuitive.
I don't trust corporate America and with good reason. Quite honestly, why are we giving back the banks a point of our commissions? Seriously? Does that point make a bigger difference to us or them? It's obscene that we have allowed that into the marketplace. Now, just because there are still foreclosures moving through the system Bernacke is proposing to move the cheese and allow the banks to rent out the REO's.
So let's review. The banks hold our money. They are the ones that control our credit. We bailed them out of their bad decisions with our taxpayer money, and now they are our landlords? Stop the madness.
They all have non-profit departments that throw money into the community to spiff up their images but rarely does that good will find it's way into the board room. If I thought that they would act with some degree of compassion, understanding or even moral turpitude that one be one thing, but when does that ever happen? We need to stop being Charlie Brown. Lucy is going to pull the football away, she always does. Stop it.
Lisa Delzompo (951-704-4559)
"May your home always be too small ... to hold all your friends!"
CA Dept of Real Estate, Real Estate Broker License #01379811;
NMLS Identifer #331744
REAL ESTATE: www.SandToSeaProperties.com. Covering northern San Diego, Oceanside, Temecula, Murrieta, Riverside County and desert areas of Yucca Valley, Joshua Tree and Twentynine Palms, CA.
LOANS: PRW Lending, Inc. Call direct 951-704-4559, or email me at lisa(@)sand2sea.us
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