Nightline Reviewed

Posted November 3rd, 2007 by Joe Kaiser

We investors get that a lot, the “they’d have been better off," thing, and it’s pretty much bogus.

Dear Rob,

Hope your office was able to watch the Nightline segment last night about foreclosure rescue schemes.

It did make a couple issues all the more apparent and demonstrated what foreclosure investors are up against, that’s for sure.

And Mr. Ira Rheingold was an interesting fellow. He made some comments I agreed with, sort of, but for the most part I felt he completely missed the mark and his bias got the better of him.

Blame Us, Amos

Not to put words in his mouth, but he pretty much called the concept of foreclosure rescue a “scheme.”

We’ve learned throughout my experience with your office that all foreclosure rescue is automatically assumed to be a scheme, and Ira is in lock-step with that mentality.

I’ve sent him an email and have asked him to contact me. Perhaps I can enlighten him. I’ll let you know.

better off

He maintains he’s never seen a foreclosure rescue scheme that actually works, admitting it might buy the owner a little time, but they’d have been better off refinancing or simply selling.

We investors get that a lot, the “they’d have been better off,” thing, and it’s pretty much bogus.

How so?

Sellers we talk to are already in foreclosure, which means they can’t refinance. Suggesting they do so shows there’s a clear reality disconnect here.

How does someone with no credit and in foreclosure refinance?

They don’t, Ira, and suggesting they could shows there’s little actual understanding of the dynamics involved.

But, that’s the least of the problems.

Or they could just sell

Ira went on to suggest sellers would have been better off just selling outright.

Psssssst . . . they don’t want to move.

It’s their home.

HOME matters.

Selling is out of the question. The’ve chosen to do whatever it takes to keep their home.

How do you not get that?

That’s why they’ve waited too long to call me, by the way. It’s why they’re now out of options and why, with only a day or two remaining, they’re asking me to drag out my cape to save the day.

Consider the Source

It amazes me that someone like Ira can stand there and say all foreclosure rescues are scams.

Sure, there are investors who are scam artists, and there are attorneys who are scam artists, and I’m guessing the ratios are pretty much the same.

Blaming investors for doing whatever it takes to save a home the seller has brought to foreclosure’s doorstep completely ignores the reality of the situation.

Given the circumstances, we investors do our best.

And AAG’s and Ira’s living in fairy tale land suggesting refinancing or selling or God forbid, letting homes go to foreclosure to collect overages would have been the seller’s better alternative?

They call us scam artists because they have no clue.


In the arena,

Joe Kaiser

4 Responses to: “Nightline Reviewed”

  1. Loya responds:
    Posted: November 3rd, 2007 at 4:55 pm

    A major disconnect….A business decision it is not….It is home and when someone does not want to move, can’t refinance, lender is tired of working with them, has run out of time to sell and talked to friends and relatives untill blue in the face——talking to a guy like Joe turns out to be a pretty good deal—–one with major value. Joe gives a solution that no one else is offering and allows the owner to stay in his home. Sure the owner is going to part with some equity but don’t tell me the owner is going to get full value when he lets the house go to foreclosure. Heck, many of the homes today are going back to the lenders as no one is bidding on them—overage–smoverage….

  2. olyguy responds:
    Posted: November 3rd, 2007 at 8:06 pm

    It has been a buyer’s market for years now. The default rate is thru the ceiling…and going up. The market is glutted with homes that have not sold… for several months or longer. Someone in foreclosure at that point has no other options; it’s go for a rescue deal offered by someone or lose the home.

    LOSE the home.

    These are very simple scenarios and it amazes me that people do not understand or choose to pretend that the reality is something else – referring to the WA AG’s office or Ira whoever.

    If the people in the foreclosure had ANY other viable option, they would have gone that route. If they can stay in their home for any material amount of time, they are ahead.

    What’s interesting to me is that since so many business deals don’t work out at all, the fact that Joe Kaiser has been dedicated enough to work out all of these foreclosure deals is eminently commendable.

    Joe has done all these people a great service; even the ones who tried to scam him in various ways.

    Disclaimer Declaration: I have no disclaimer statement for me. There is none. I don’t know Joe Kaiser, never met him, have never had any association with him at all in any way. I have read the news articles and the information from the AG’s office, etc. I have however, put many business deals together, attempted to put a lot more than that together, have developed several companies successfully, had a few that were bought out by Fortune 100 companies…. So I do recognize the some of the challenges Joe faced in helping these people. And yes, he made money in some situations-that’s how it works, that is how it is possible for him to offer this help.

    So here is all this criticism of him-all from people and agencies and offiices that have done NOTHING to help these people.

    My wife and I had an interesting experience this summer. She had walked away from working with the Sec of State’s office due to the politics involved. As she looked around at different jobs, she decided to work with Comcast for a while to get out of the house. Turns out that the company was actually a contractor to Comcast. An UNlicensed, UNregistered company with shady background in other states. We called a lot of state offices concerning their illegal operations. Not one of them cared. She started with the AG’s office. No one cared. She never got paid for her work. The agency that was supposed to send out the forms for her to file did not do so. No one would even take the information. So here is an illegal company doing business in the state of Washington, not paying their staff, not paying their licensing fees or taxes, etc. And no one at the AG’s office cared; no one would pursue it. I guess it was small time and not worth the publicity. Or Comcast is a contributor to their political campaigns. Or… they are just the lazy, incompetent people that they are.

    What I do know, is that the WA AG’s office and Gov Chrissy turn my stomach. They disgust me. Washington is such a nice place to live. And people like them, who have a responsibility to us, have forsaken the public trust and their stewardship.

  3. David Alexander responds:
    Posted: November 3rd, 2007 at 8:35 pm

    Or heck… for us investors that only buy houses where the homeowner is moving… it’s still a better option than trying to sell….

    Let’s see… it’s 4th and 30 and the only option is to punt….

    All these so called guys on the side that say it’s a scam… would have you believe that someone who buys a house in foreclosure is scamming them out of equity never having been in that situation…

    It’s amazing how you can be on the sidelines and play armchair quarterback…..

    We solve problems and get paid for that… often times it’s just saving a sellers credit…. a better alternative than losing not only their equity but there future ability to buy when their problems in life clear up….

    In this market selling is not as easy as all these wanna be do gooders would have you believe… not even for investors, agents and people who base their careers on being able to turn houses….

    It’s funny how people want to control how much we buy and sell for…. it can’t be right….

    Last I checked that’s one of the things that makes this country work… the right to free enterprise….

    The ability to contract to buy and sell will never go away… and there will always be people who clean up the messes others have left behind…..

    Without investors who are willing to take risks beyond the norm our whole housing market would come to a halt….

    If someone wants to sell because they do not want to deal with the hassles…. or are facing crazy life problems…. and someone wants to buy… it makes no difference whether they buyer makes 10,000,000 or 50 cents…..

    It’s absolutely immaterial…. but, all these do gooders armchair quarter back and say they could’ve, woulda, shoulda….

    But, you never see them put themselves at risk…. they can only say… I wouldn’t have done that…. please…. you don’t know what you will do till the situation happens to you….

    Before I was in the house biz…. my dad lost a house years ago… I only wish an investor would have come by to pull his house out of foreclosure…. and saved his credit at the very least…

    It would have taken him a lot less time to bounce back…. from the vents that happened that year…. Job loss after 25 years, divorce, and and finally the loss of his home….

    Instead.. it was just attorneys that showed up to ask him to pay through the nose to file bankruptcy…. he had no money it wasn’t a solution…..

    Most investors I know usually even pay the closing costs and charge No Fees to the seller…..

    But, again these wanna be do gooders want to have you believe in every situation you can sell….

    Gentleman…. it often cost money to sell… money the sellers don’t have…. in fact a lot of times there isn’t even equity…

    Most of the time the sellers want a very private transaction so that they aren’t embarrassed….

    And typically the sellers have waited till the zero hour (wanting to keep their home) where the options to sell are now limited to either someone with cash to act fast or the ability and knowledge to solve problems must act quick….

    And we as investors have typically payed dearly along the way for the educated risks we take and deserve every dime we make…. I assure you…. as none of those do gooder guys would last 10 minutes in our arena….

    They would get eaten up… it takes a certain discipline to seperate emotion when You are trying to help a family save what little they have… and the fine line comes when you at times you offer too much giving in to emotion and the street again teaches you why you have to stick to educated risks…. as you lose money….

    It’s for for these guys that don’t put out there efforts and/or money to cast stones… when they’ve never been there….

    Without us…. the world comes to a halt and the housing industry would sit and stagnant….

    We are here to say and here to clean up the messes… and there’s nothing wrong with making a profit while we do…..

    And who are they to say what is too much or a seller coulda, would a shoulda…..

    Get a new life… one where you don’t live in a glass house….

  4. Bruce responds:
    Posted: November 4th, 2007 at 10:29 pm

    The people in these state and local gov offices are SHOCKINGLY uniformed!….what little they know about the foreclosure process (real world) would fit in a thimble. Don’t they understand these “options” are NOT AVAILABLE to these folks anymore?????

    When an investor gets into serious talks with these folks it is getting very near crunch time. The property is often not that salable even in a good market. AND as Joe said, THEY CANNOT REFINANCE!!! (heck, right now, ‘A’ credit owners with even a small blemish on their credit report may have trouble refinancing).

    So what lender is going to refinance a person in FORECLOSURE who’s missed a bunch of payments?????….gimmee a break.

    Do these gov fools even read a newspaper and know what the market is like today???

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