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It’s a sad day when a belief dies.  In this case it’s my belief in Geeks.  Geeks have had my respect and admiration, usually tinged with awe for their depth of knowledge and expertise in whatever their specialty.   I’ve known I could count on Geeks…until now.  Are these two self-appointed “geeks” purposely withholding information or are they really that uninformed?  I’m stunned that they believe the only caution to purchasing a foreclosed home is because the banks sell them “as is”!!  For those of you who follow this blog please bear with me while I repeat:

What about telling the potential buyer of a foreclosed property:
1-that the moment they sign the paperwork they are underwater?
2-that they will be unable to get title insurance worth the paper it’s written on?
3-that they will likely never get clear title even if they paid cash up front for the whole purchase, or at least not without extensive research, time and legal expense and even then it’s just a possibility.
4-that they face the very real possibility of the foreclosed owner coming back for their property and the courts kicking them, the new buyer out
5-that anyone with their name attached to the property, including the real estate agent, could be facing future law suits for not informing the new buyers of the above.
There’s SO much information circulating now about what Wall Street did, about the pretender lender banks and the impact of it all, how can anyone plead naiveté especially if they call themselves an expert, a Geek?  So why would any realtor lead a potential buyer to the slaughter?
There are realtors who know the difference between right and wrong.  Realtors who have even quit their career in real estate when they realized they were nothing but pawns of the pretender lenders.  Realtors who are feeling a sense of shame for being part of the scam.  
You see Wall Street didn’t just change the rules of the game, they changed the game.  Realtors were once admired for their knowledge and the assistance they provided to buyers and sellers and they were respected as an essential part of the growth of our communities.  But real estate is no longer about the buying and selling of homes.  There’s no pride in that anymore because that’s not what it’s about anymore.  
Pretender lenders bank on realtors as an essential cog in their wheel of destruction going around and around.  They say everyone has their price, that anyone can be bought, but really, if you knew that you were aiding and abetting the largest financial crime in the history of the world, wouldn’t you try to do something about it in your own corner of the world?  Let the pretender lenders do their own dirty work.
Start caring enough to really inform potential buyers about what’s going on.  Think about it.  Do realtors not own houses too?  What makes them believe they are immune from what the rest of the world is going through?  Start reading your own mortgage documents and what you believe is your own title insurance.  
And to these two who wrote this article, stop using the title “Geek”.  It’s an insult to Geeks the world over who actually know their stuff.

A “foreclosure filing” is any one of the following foreclosure-related events : A default notice on a home; a scheduled auction for a home; or, a bank repossession of a home. Because of this definition, a single home can account for up to 3 foreclosure filings — one from each category.

Because of this, we may glean more relevant insight into the foreclosure market by separating RealtyTrac’s foreclosure report into “event types”.

  • Default Notices : Up 10% from September 2011; Down 31% from October 2010.
  • Scheduled Auctions : Up 8% from September 2011; Down 38% from October 2010.
  • Bank Repossessions : Up 4% from September 2011; Down 27% from October 2010.

As a home buyer, foreclosures are worth watching. They account for 18% of home resales nationwide and, in some markets, can be bought at steep discounts versus a comparable “non-distressed” home. That is part of their appeal, in fact.

But just because foreclosed properties can be a “deal”, it doesn’t mean you should rush to buy one. Buying a foreclosed home from a bank is different from buying a non-foreclosed home from a “person”. The contracts and negotiation process are different, and foreclosed homes are sometimes sold as-is.

“As-is” means “this home may have defects”.

24 Responses

  1. Excellent – on point for calling out the real estate agents who are all too willing to profit from this ongoing fraud. It’s just like the vultures going for the road kill.

  2. A good video on this situation that has caused ALL our problems with the foreclosure frauds is a documentary called THRIVE. Only seen online….at

    Well worth the $5 to rent the movie.

    There is some very shocking true information in this video. It keeps getting taken down from youtube

    “The cancer stage of capitalism is not a metaphor.
    It is a rigorous description of where we are.” The current financial
    stripping of economies and environments across the world exhibits, in
    fact, all the hallmark characteristics of a carcinogenic invasion. As
    on the cellular level, an uncontrolled rogue sequence of reproduction
    invades and self-multiplies across social borders with no committed
    function to life-hosts. As on the cellular level, the cancer advances
    by not being recognized by surrounding life communities. —John
    McMurtry, Professor of philosophy at the University of Guelph, in Economic Reform, Vol. 11, Number 3, March 1999

  3. Each mortgage banker originator has special real estate lawyers/brokers who are compliant
    …(complicit more like it)
    are in Agreement with Freddie/Fannie. c/o Originator.

    91st Day of Foreclosure EXCHANGE or transfers servicing of new default debt and special real estate lawyers/brokers as vendor are new SERVICER have first option to purchase property first as substitute trustee Sheriff Sale closing will take place and it fixed by computer – transactions electronic are of the treasury of the county the property located (many are electronically connected) and monies delivered payable to Sheriff.

    The REO brokers many are owner/operators of one of the valued chains ERA Francise, Century 21, Sotherby’s, Better Homes & Gardens, Coldwell, Weichert, etc. These real estate brokers who are licensed are partnered with ‘Mortgage Banker Originators’ who do the escrow closings ….

    Like the attorney’s wear multiple hats so do the real estate brokers and which hat are they wearing ? Got to look closely at the HUD and look up the individual names and find out who they are in agreement with, what private LLC’s they are managing members of, etc.

    Example:Premier Asset Services handles the nationwide network of RELS Title Settlement & Closing Valuation Services and give Origiantor GOOD TITLE c/o Lender.

  4. Ken Johnson I am with you!
    The real estate business that I have worked in and loved for 25 years has been destroyed by something so much bigger than Realtors, title company employees, processors, etc. I am not a Realtor although I work along side of them. Most agents love helping people that is why they got into the business but The American Dream is not what it was 20 years ago. Real Estate is no longer an enjoyable referable process; the banks have destroyed every realtors business with complete disregard for time lines, and contract law. Banks do not care that babies are being born and spouses are dying and children’s lives are being changed by the stress put on ordinary families waiting for a short sale or foreclosure sale to be completed during the buying process. The realtor is not on a salary so no closing no pay. You folks who want to cast daggers at these agents just think would you work for FREE for 6 to 9 months in hopes of getting your commission helping the buyers and sellers through a very difficult process that should have take 45 days dealing with the stress that goes into each one of these transactions?

    Realtors need to stop doing the banks dirty work problem is no one is educating the Realtors. Most do not have a clue about what is going. They are all independent contractors running their own business unless their Broker or NAR tell them something is wrong they will not believe it.

    It does make you want to puke!

    Even worse is the poor homeowners who have lost their home to foreclosure two and three years ago are longing to be homeowners once again and they could be walking into land mines if they buy a foreclosure or short sale themselves. Or worse wait till they find out that they may still own the home they were forced out of so long ago. No one believes this either but I think that is what is coming out more and more each day.
    The silence is unbelievable from the Associations of Realtors across this country.

    Realtors are starving and loosing their homes just like everyone else who is unemployed or under employed. The sad truth is the good realtors who have made this their life’s work do not even recognize their industry they are really trying to help people to work through these complex issues at their own peril!

    Jeff you make excellent points.

    Charles I am with you Double Dipping and Dual Agency should not be allowed ethical agents do not do it.

  5. Funny you should mention ND banks, yes there is a group of people there that basically took back the government up there, the rest of the country DOES need to follow suit! It CAN be done!


    REALISTICALLY SPEAKING, what you say Realtors or others should do is simply not going to happen Sad to say, the 5 or 6 points that you raise in your article amounts to no more than wishful thinking,

    By including the realtors in your list of potential victims as a way of getting them to wake up and smell the proverbial roses, is not going to work because pasiveness, timidity, simple lack of caring and the need for them to survive on a day to day basis will win out every time.

    People in general are not that noble that they would even come close to implementing any of your suggestions and the rare few that would, are practically non existent. Here’s why….

    1. As a general rule, people are not naturally built or oriented the way you say they should be in your article. Of course, they will all pay LIP SERVICE and say, yes, thats what needs to be done, but in reality, adopt the attitude, “if you are depending on me to do it you are in for a long wait”. You will also hear them say, YES!! I own my own home and if anyone challenges my title to it, they can deal with my attorney.

    2. They could also very easily justify their position by stating, “I am not about to open a can of worms and place my job and livelihood at risk by being the good Samaritan”.

    3. “I am not financially or emotionally equipped to take on a project so magnanimous, I am too busy trying to survive myself”.

    4. “I am not about to kill a prospective sale to a willing buyer and deprive myself of thousand in commissions, by warning or alerting them to the potential pitfalls that could occur (as described in your article) if they go through with their purchase, warnings of which could quite possibly involve me in a potential lawsuit from a variety of sources.

    Example a lawsuit by the seller for deliberately killing his sale which is in direct conflict with what I am contractually bound to do with him/her, especially if the pitfalls I cautioned the buyer about never came true.”.

    5. Another attitude is, Let the Occupy Wall St movement get things moving in the right direction, so far they are doing a fine job, I will just go with the flow in whatever comes of their efforts.

    6. In any event, its up to the buyers Attorney to point and safeguard his client (buyer) from these potential pitfalls that you describe.

    There are many other reasons that could be given, whether they be real or imagined. In short, the nature of the beast in us cautions us not to get involved, it all boils down to one thing, let someone else put the world right.

    Again, as sad as it is to point this out and tell it like it really is, It simply ain’t gonna happen the way you suggest. BUT WHEN ALL IS SAID AND DONE, YOUR HEART IS IN THE RIGHT PLACE.

  7. @joann

    It’s purposely ignored by main street media owned by Wall St and Big Banks. I have posted about this before. And I will keep posting.

    Any state starting a state bank modeled like North Dakota will end their troubles with the Wall St money machine.

    It could take but a few months.

  8. @cubed2k

    “Ellen Brown on Wall Street, Banks, North dakota:”

    Thanks. Simple common sense ignored so far. Individual states could get this done quickly couldn’t they? How long would it take? Or does it take a new contstitution? There is more in it for states than is mentioned even in the link you posted. North Dakota isn’t socialist. Bank of North Dakota partners with local business and local banks in win win. Amazing it isn’t in discussion more than it is. Amazing big banks profit on the state debts just like the consumer debts and even run the unemployment programs and food stamp programs and make money off those. Few know that.

  9. “Only when the Federal Reserve becomes an instrument of the people to calm the mood swings of the market – and not a piggy bank for transnational banking corporations – can we really protect ourselves from a technocratic takeover in the future. And the way to do it is pretty straightforward – it was Alexander Hamilton’s idea back in the George Washington administration. Have the central bank owned by the US government and run by the Treasury Department, so all the profits from banking go directly into the Treasury and you and I pay less in taxes while the banksters on Wall Street can find a job at Wal-Mart.”

    from this article:


    Our Country and all other Countries having a Central Bank are in fact, the Central Banks and their Chairmans —- they are in fact the Presidents of those Countries, and ours. when Obama is just a spokesperson

  10. Ellen Brown on Wall Street, Banks, North dakota:

  11. Ben Still for President:

  12. Its how much they (Realtors) don’t know that is scary… maybe some con-ed classes geared towards understanding chain of title/ownership would help them. Oh wait, Congressman Bill Posey has begun doing this in Brevard County, FL… look, here he is willing to teach ‘everything’ you need to know about f-c and short sales (wink wink)

    what else does one expect from the creator of FL SB 282

  13. Pensions are being destroyed, families are being rendered homeless and our government officials sit on their hands and do nothing to protect the citizens from massive fraud and theft.

    95% of foreclosures are not defended in any way. The majority of foreclosure cases I’ve reviewed involve fraud on the part of the bank (almost every one!), and I have reviewed many. I took my own case against Deutsche Bank to the court of appeals and WON (I was denied a trial by the lower court so appellate level litigation was the only “next step” available). I am very familiar with the numerous types of fraud involved (fraud in origination, servicing related fraud, manufactured foreclosures, fraud on the courts, robosigning, roboperjury, roboforgery, etc.).

    I fear the only people that will be accorded justice are those that advocate/litigate for themselves and are able to successfully take their cases to a jury of average citizens. Clearly few in Washington are advocating as they should.

    I have recently become associated with a licensed Investigative Agency specializing in mortgage fraud (the MANY different types). Knowing the facts, and being able to prove them, is a very powerful position to be in. If you, or someone you know, has been victimized by mortgage fraud of any type please have them contact me, Glenn Augenstein, at Initial consultations are free.

  14. Does anyone know how to contact Spitfire?

  15. I told my buyer. I told him we need to look for a property that he could buy…like a property that has been held by the owner for 20 or 30 years that has a clean title. Not a property with a subprime loan, a short sale or reo. I don’t know if we can find a buyable prop. I havesent livinglies posts to my broker-in-charge and just got a thank you. My heart sank when I heard NAR spokesman saying “best thing to do is work through foreclosures as fast as possible” with no mention of Robo anything. I have been spending more time at Occupy SF and Oakland than at my real estate office. I am reading for a couple of hours every morning at 6 am. Job transfers, relocations, buyers wanting a bigger or a smaller house all are still trying to share the american dream. It’s my nightmare. My mission statement…Creating wealth and security through ownership and investment in real estate” is all the more difficult and complex. Everyday i get emails from Short Sale and REO scamers wanting me to pay for signing up with bankers and bankster servicers. I want to puke. NAR and CAR ignor the truth. Why should I pay my dues? I add an adendum that spells out Fraud and cautions all parties of future litigation. I wish all Realtors would march with me on the Occupy front line.

  16. It stinks from the top. Obama’s too big too fail is anti capitalism. Obama is a Communist not a socialist. This is Anti American. The blame can go to Bush to Clinton to George Washington, but that wont help us now. Obama is in power. Everything this Goldman Sachs employee has touched has been a failure. Except for his ability to raise money for election. Sounds like a Demagogue to me. The most dangerous form of politician.

    As the Presidential Candidate Repuplican Jon Huntsman said Capitalism without Failure is not Captalism.

    As much as I would like to blame the Realtor. The Realtor is doing what he/she knows.


  17. Funny to find this here – I was talking to a buyers agent prior to the buyer arrival and talking about the fraud and my unwillingness to buy a foreclosed property BECAUSE the buyer doesn’t really know who they are buying it from, and nor are the titles clear. Later, during the quick signing, the wife asks, “who exactly am I buying it from” and I & the agent immediately looked at each other – and I had no time with them by myself, so I certainly didn’t bring it up in front of them. I just handed the papers to the agent to let her answer, I wasn’t going to touch it with a ten foot pole. She looked at the HUD1, looked at the Warranty Deed, stumbled and then just said, “The bank.” What a JOKE, there is no way to know, which was EXACTLY my point in conversation with her previously.

  18. Realtors are about the dumbest party in a REO/Short Sale transaction. REO Listing Agents don’t have a clue who the “Owner” of a property is before they offer “cash for keys” or bombard a homeowner’s door with the Sheriff to evict. All they know is some default manager told them that it was okay!!! THEY DON’T BOTHER TO CHECK PUBLIC RECORDS FOR OWNERSHIP, THEY DON’T EVEN QUESTION THE DEFAULT MANAGER. I’ve always said, start making regulatory complaints to the Real Estate Commission and the Bar Association on local Realtors & “Bank” Attorneys. Chop the “Banks” off at their feet… if they didn’t have these “agents” they wouldn’t step foot in a property or in a courthouse…they’ll never put themselves in a position to be fall guys as long as they have “geeks” to do it for them….

  19. I quit the NAR a LONG time ago. What I have come to discovery that most professions that teach “ethics” don’t have any (think about it). Doesn’t solve the whole problem but at least quitting allows you to not add to the lobbying efforts they put foth in passing laws illegal in other professions (like “dual agency”…as if…) and so forth. I can still remember being flabbergasted during the weekly company meeting for the first real estate firm I worked with announcing and applauding double-dippers and showing reward for those earing both sides of a commission from both the buyer and seller side. It stank then, and from then on.

    Tried once, using thier “mediation and arbitration” process for a broker who kept a commission I earned when working as an exclusive buyers’ agent and when sitting for the arbitration and realizing that I had no actual “peers” on the panel, that was the end for me…long before the mortgage mess came about. Single agency/advocacy and actually working for one client is completely foreign to most if not all of them…I realized.

    I can also say in the years I was involved in the business, EVERY transaction I was involved with, the other agent did something either illegal; in breach of contract or in violation of at least one or more of the Codes of Ethics and Standards of Practice and I’m still experiencing it today having been forced into the rental market and seeing what agents continue to do in screwing renters and buyers alike.

    If you like filing and litigating law suits it’s good…but what a way to live (NOT!) Going on even to this day and in my current situation…simply amazing how screwing people seems to be a way of life for these people doing anything to anyone to earn a commission. Simply disgusting.

  20. There’s gonna have to be a new school of realtors, or some sort of realtor information packet brought to you by the FDIC, or the OCC, or some regulators, LOL. If the realtors are not aware of the problem we have in the real estate business in this country today, then who the heck is supposed to know? On the other hand, they are hungry for work, it’s been I can imagine a very dry couple of years for them!

    Businesses in this capitalistic system is based on how to make the most amount of money in a short amount of time. You see an opportunity, you take it. I can also imagine how attractive foreclosed homes prices are to those wanting to own a home or investors trying to capitalize on the idea. The problem is in my opinion, is that most people are either still ignorant of the facts or just playing stupid. If 95% of homeowners walk away from their homes because of the foreclosure issues and the lack of knowledge, then how can we expect more from the real estate people! And if the main stream media is downplaying down the whole thing, most people will not know much of what’s going on.

    What we are going to have is another crisis looming in the shadows of this crisis, which either complicates things or perhaps improve things for the homeowners who are battling the banks. the more problems arise from the foreclosed homes on the market the more open and vulnerable and exposed banks will be, but again it would be hurting more people in the process. So where does the responsibility lies, in the hands of the banks, the government, or the whom? There was no honesty back in the subprime days, people saw money and they didn’t care how it’s going to affect others in the process, no conscious!

    I think it’s going to take people like us to bring it out in the open, we have to educate people in as many ways as we possible can. Because if it wasn’t for the fact that the average person is broke, lots of these homes would have been sold by now, as they are…We cannot keep the reality hidden from those who are ignorant, we have a responsibility to our fellow neighbors and friends to enlighten them, and to prevent further damage in the real estate world. The banks and the government will have to suck it up just like we did. They created this mess, they have to fix it, and they cannot fix it by just continuing to close their eyes and pretend that there’s no problem.

  21. I quit… the ethical mathematics just didn’t add up = (

  22. A great % of them do not care. That market is so depressed, and I know because I have been in the rehabilitation of homes for years, they care less, just about the check. Many realtors are very unsophisticated.

    Given what I am seeing and reading a great many short sales and foreclosures are VERY risky to the buyer.

  23. @Linda,

    True! They know nothing and don’t want to learn whatever may hurt their business in the immediate term. The took a solid part in this mess by failing to disclose. They puwhed and pushed for short sales, even though foreclosure was inevitable. They saw their interest and only followed it. Part of the problem.

    Case in point: a friend was about to buy a Maronda home through another firend of mine, a realtor. Last March, Maronda filed for BK 13. The closing was in June. I called the realtor and told her about Maronda and asked her if she had mentioned anything about BK13. Her words: “It has nothing to do with the buyer. Don’t say anything and chase them away needlessly”.

    It won’t?

    Maronda is the origination lender. Afterwards, they sell the note. Maronda also guaranties the properties for 10 years. If they go belly up, who will? It seemed to me to be very important. I had a choice to make of which friend I was willing to keep. It ain’t the realtor…

  24. This is correct but you would be shocked at how many realtors don’t even have a clue about what is going on with chain of title. I guess the DRE thinks if they don’t talk about it then it will just go away. I will not
    even show an REO. My business has taken such a huge loss as most
    of our listing’s are REO’s or short sales and so while I am having a hard time making ends meet I refuse to take part in the on going fraud. I tell everyone I know to stay away from these properties. Once the public get educated the first people they will sue are the realtors that sold them the properties. Even though it states in fine print on the bottom of the REO contracts that these properties are being sold as is and that means title defects and all. BUYER BEWARE….You would be stunned by the amount of people who have no clue who MERS is or anything that they banks have done.

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