The “Core Problem”

Posted April 21st, 2008 by Joe Kaiser

The only reason someone would sell their house for no money is because they were promised the opportunity to buy it back.

Dear Rob,

AAG Jim Sugarman is at it again.

He’s testified before the legislature regarding the new foreclosure law, demonstrating the cloud of confusion your office is operating under.

sugarman.png

What our bill (HB 2791) does . . . is address the core problem . . . people were being convinced to sell their house for no money. No money whatsoever.— AAG James Sugarman
Consumer Protection Division

That’s what you think happens and that’s what you consider the core problem?

Ugh, no Jim.


Not about convincing

Let me explain (again).

People doing business with me do not need convincing. I don’t have to trick them, twist their arms, pull the wool over their eyes or do anything remotely related to “convincing.” It doesn’t work like that.

How does it work?

I show up when there are few options remaining. I let them know what I can do, and, I let them decide if that works for them.

“Being convinced to sell?”

Never happens.


No understanding

How do you create a law to address a problem when you have no understanding of the problem?

The simple answer is, you don’t. Except, you did, so maybe the better answer is, you shouldn’t have. The problem, btw, is they’re in foreclosure.

Remember, foreclosure?


Making sense

Jim continues . . .

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The only reason someone would sell their house for no money is because they were promised the opportunity to buy it back. And what we said is if you’re going to make that promise, you have to know that it’s performable, that you can buy it back, because otherwise, it makes no sense at all.

Rob, I don’t think Jim’s considered the alternative here.

Do you think that maybe, just maybe, they’re interested in avoiding foreclosure and that, in and of itself, is their motivation?


Making Sense

Were there not a foreclosure days or maybe even hours away, then selling a house to an investor, and doing so for little or even no money, may, in fact, make no sense.

However, with foreclosure on the horizon and losing their home the certain outcome of not doing whatever it takes to avoid it, it makes perfect sense.

Remember, foreclosure?

We don’t do these deals in a vacuum, we do them with foreclosure fast approaching.

Suggesting it makes “no sense” for them to sell for “no money” unless they’re guaranteed they’ll be able to buy it back demonstrates yet again your office’s inability understand their motivation to do this sort of deal . . .

THEY’RE ABOUT TO LOSE THEIR HOME TO FORECLOSURE.

In the arena,

Joe Kaiser


2 Responses to: “The “Core Problem””

  1. David Alexander responds:
    Posted: April 21st, 2008 at 2:29 pm

    Wow!….

    So, I guess that all those folks that have sold me houses for not a dime of their equity… because I offered to sell it back….

    Nope… wrong….

    I don’t sell houses back… and folks sell to me all the time just to avoid that inevitable thing called “Bad Credit”… so they might be able to buy another house in the future…

    To avoid that thing called “stress”

    To avoid anymore of those nasty phone calls…

    To avoid having to list the house….

    To avoid having to deal with fixing the house…

    To avoid having to having to figure out all the red tape…

    It’s hard for folks to understand things that have never been under any type of real stress in their life….

    Somehow they seem to think of themselves as white nights…

    In fact right now… congress along with all these politicians are doing the greatest injustice of all… giving folks false hope..

    We are going to do a moratorium on foreclosures, and all the rhetoric that goes with it…

    People that are in foreclosure are now stopping dead in the tracks… doing nothing… waiting for that hand me down from these guys who are playing “god” with their emotions…

    When in the end… they will just end up losing their house, their dignity, and their credit… further tanking the economy… because these peopel wanted to make some folks feel good for a few weeks… so, they could get good press to get elected…

    Talk about manipulation…

    And we as the real estate investors are the bad people… because we solve problems that the rest of the economy can’t solve and get paid well for it…

    Because we have developed marketing skills, tog et things done….

    We developed and understanding of real estate knowledge and skills that would make most would real estate attorneys envious…

    When you keep doing things without consulting those actually in the know… going by the hip… your gonna… Muck it up… and muck it badly….

    Hey, but, it’ll all be on your shoulders at the end of the decade…

    This is the legacy you are leaving to you’re children and children’s to clean up when their are people perfectly willing to do it now…

    We tried to warn ya… !!

  2. Joe Kaiser responds:
    Posted: April 21st, 2008 at 3:24 pm

    Jim is addressing foreclosure rescue scams where people sell for no money expecting to be able to buy their house back.

    My point is people accept these types of offers to sell because they want to avoid foreclosure and stay in their homes.

    Being able to re-buy the property is great and is an incentive, I’m sure, but avoiding the foreclosure is their primary concern and the goal that matters the most. If foreclosure isn’t stop, there’s nothing left to rebuy.


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