More Tricks NAR uses to be a Cartel, and MAKE you Join "NAR" or you can't Play
Crystal L. Cox
Real Estate Industry Whistleblower
The National Association of Realtors is a Monopolistic Giant that is Above ALL Anti-Trust Laws, and because NAR Lobby's - Huffs and Puffs and Spends Millions a Year (Literally) Lobbying for what is Good for NAR and Bad for Consumers, well NAR is to Big for the Department of Justice to Really do anything to Fight them.
SO they have to cut deals and create illusions.
Meanwhile the National Association of Realtors
NEVER has to admit that they Really do actively
Violate Anti-Trust Laws Every Single Day..
Non-NAR
Now we now that NAR members boycott members who charge less commission, we know that NAR members boycott local Real Estate Magazines that Allow Companies that want to Market a For Sale by Owner... now these Magazines make BIG Money from Real Estate Companies with Lots of Listings SO the Magazine Does What they are TOLD too, Right?
It Violates Anti-Trust Laws TO not let Non-NAR Real Estate Agents, FSBO Marketing Companies or the Sellers themselves market in local real estate magazines. However NAR is above Anti-Trust Laws, meanwhile those BIG Tech Companies like Intel Corp. and APPLE have to pay HUGE fines seems like every year in order to make deal for the Anti-Trust Violations.
Why is the National Association of Realtors protected from all this?
Who is Protecting NAR and How Much are they Paid to Look the Other Way?
NAR acts like, and the Department of Justice seems to blindly believe, or pretend they do, that Realtors don't participate in Anti-Trust Violations and the NAR in no way promotes Anti-Trust Law Violation behavior in their Agent, "Realtors". Yet along with Magazine Boycotts, Boycotting agents that charge less, and blatant "Standard Commission" Practices that REALLY Do happen.....
We also have the, Well if your not a "Realtor" "NAR" member - National Association of Realtors Cartel Member TELL non members they won't show their listings because they are not guaranteed to get PAID - this Greedy behavior ... promoted by NAR is Flat Wrong, and designed to AGAIN force us to be NAR members... the "REALTORS" can show our listings they just won't - all they have to do is submit a Commission Agreement with the Purchase Agreement - that Simple Happens all the Time... yet NAR members tell their Agents and Yammer about it in groups that You won't get PAID don't show her LISTING... WHAT?
Flat OUT Lies brought to YOU by the National Association of Realtors !!!
Now on Top of this THEY make it Almost impossible to SHOW their listings because they are often to Busy to accompany you if your a Buyers agent, which is Really in the Sellers best interest because the Seller's Agent - so they won't go open it for you - or go get the key from the lock box so you can use it - you can't get a "Supra Key" the Magic "Realtor" key if your not a Member - so yet another way that NAR promotes Monopolistic Behavior and Pushes out Real Estate Broker that ARE not Members of the Realtor Club.
This is AGAINST the Law of the United States of America
and the National Association of Realtors is Above those Laws.
Crystal L. Cox
Real Estate Whistleblower
Crystal Cox Blogger
Thursday, January 28, 2010
Corrupt MLS Data - in Which the Entire Real Estate Industry and Secondary Loan Market is Built on.. by Crystal L. Cox
Crystal Cox Ten Lakes Realty
Crystal L. Cox - Ex-NAR Member .... Says the MLS Data is NOT Accurate or Policed for Quality in any way... this Data is the Foundation of the Secondary Loan Market - Economic Collapse..
People with Great Credit and Good Jobs are walking away from their Homes. WHY? well because they know they will never Sell it for what the Fake Real Estate Market SOLD it to them for. So these folks are letting the banks take the property back and they are renting places for half the price.
The Real Estate Industry is Broken and the Banks are Rewarded for their part in the Collapse and NAR - well no one seems to get the IMPORTANT role that "Realtors" MLS Data Place in the financial market - the Real Estate Industry is the FOUNDATION of the Banks, the Economy... and Allowing Prices to Rise Just to Get Deals Closed is Fraud on the Real Estate Consumer - and yet the Consumers are the ONES Losing everything - NAR is business as usual and the Lending Industry has NO Accountability to the Real Estate Consumers Losing Everything.
HELLO why are No Fingers Pointed at NAR ?
There is No Governing Entity that can HOLD the National Association of Realtors accountable for the Lies they Tell. The MLS, the National Association of Realtors created the False Real Estate Market with Corrupt, Un-Regulated MLS Data, this Data was used by lenders to give loans for Way More then property was WORTH, the Lenders knew it was happening and turned a blind EYE - oh well they get a bail out - the PUBLIC - you.. the REAL Estate Consumer Who Did not KNOW - well you get to Keep them in Business.
STOP the MLS Cartel,
STOP NAR from the lies they tell and the lack of accountability for Good Data that YOUR financial industry is built on. STOP NAR from not holding Realtors accountable for Fraud and LIES. HOLD the National Association of Realtors President, Assocition Board, Economist Accountable for their FLAT out LIES and Propaganda EVERYWHERE that Gives Consumers FALSE Confidence and Encouragement to Buy in a Market that was HUGELY over inflated by False MLS Data and Unscrupulous Lenders with the HELP of Mortgage Broker Lies and Pressure to Close a Deal with the Help of Appraisors and Realtors....
a Seriously Broken System - the Real EstateIndustry Needs a Total Make Over
Crystal L. Cox
Real Estate Broker Owner
Ten Lakes Realty
www.BrokersZone.com
Crystal Cox Eureka
Crystal L. Cox - Ex-NAR Member .... Says the MLS Data is NOT Accurate or Policed for Quality in any way... this Data is the Foundation of the Secondary Loan Market - Economic Collapse..
People with Great Credit and Good Jobs are walking away from their Homes. WHY? well because they know they will never Sell it for what the Fake Real Estate Market SOLD it to them for. So these folks are letting the banks take the property back and they are renting places for half the price.
The Real Estate Industry is Broken and the Banks are Rewarded for their part in the Collapse and NAR - well no one seems to get the IMPORTANT role that "Realtors" MLS Data Place in the financial market - the Real Estate Industry is the FOUNDATION of the Banks, the Economy... and Allowing Prices to Rise Just to Get Deals Closed is Fraud on the Real Estate Consumer - and yet the Consumers are the ONES Losing everything - NAR is business as usual and the Lending Industry has NO Accountability to the Real Estate Consumers Losing Everything.
HELLO why are No Fingers Pointed at NAR ?
There is No Governing Entity that can HOLD the National Association of Realtors accountable for the Lies they Tell. The MLS, the National Association of Realtors created the False Real Estate Market with Corrupt, Un-Regulated MLS Data, this Data was used by lenders to give loans for Way More then property was WORTH, the Lenders knew it was happening and turned a blind EYE - oh well they get a bail out - the PUBLIC - you.. the REAL Estate Consumer Who Did not KNOW - well you get to Keep them in Business.
STOP the MLS Cartel,
STOP NAR from the lies they tell and the lack of accountability for Good Data that YOUR financial industry is built on. STOP NAR from not holding Realtors accountable for Fraud and LIES. HOLD the National Association of Realtors President, Assocition Board, Economist Accountable for their FLAT out LIES and Propaganda EVERYWHERE that Gives Consumers FALSE Confidence and Encouragement to Buy in a Market that was HUGELY over inflated by False MLS Data and Unscrupulous Lenders with the HELP of Mortgage Broker Lies and Pressure to Close a Deal with the Help of Appraisors and Realtors....
a Seriously Broken System - the Real EstateIndustry Needs a Total Make Over
Crystal L. Cox
Real Estate Broker Owner
Ten Lakes Realty
www.BrokersZone.com
Crystal Cox Eureka
Saturday, January 16, 2010
Can YOU Legally Get Advice From Me? Can you Get Independent 3rd Part Advice from a Real Estate Broker Anywhere?
Real Estate Coaches Oftentimes Do not Have a Real Estate License in any State or A Law Degree of Any Kind. Which often I have found in Lawsuits does not matter, because the Real Estate Attorney has to Go Look up a Law That applies anyway.
Ok so I am not a Real Estate Attorney, what do I know Right? Well I have seen the Inside of HUGE lawsuits, I have seen what Real Estate victims go through and as a Broker Owner I know what can happen to you and I can Protect you.
NOW the National Association of Realtors DOES not want a 3rd Real Estate Broker, or even NAR member in the Deal so that is ONE of those National Association of Realtors ETHICS that they do love to WHINE about.
When a Buyer or Seller Would Call me Desperate, and already in Negotiations with Another Realtor, and I was then A Realtor - the NAR Ethics would have me say oh there is Nothing I can do for you, your going to have to Listen to the Realtor Representing you and Giving you Information that is ONLY based on them Getting Paid.
It is UnEthical according to the National Association of Realtors if I Tell you that there is Something Wrong with your Deal and you Could Get Hurt.
Though your Human Rights, Civil Rights, Constitutional Rights would say you CERTAINLY do have a Right to 3rd Party advice whether it Free or you pay for it.
Why can you hire a Real Estate Attorney, pay them a wage to give you advice but not also get another Real Estate Broker to tell you What they Think of the Deal and you pay them for that Time - REGARDLESS if you Close the Deal OR Not?
Real Estate Attorneys Do not know all that goes on behind the Closed Doors of a Realtors Real Estate Transaction and they may not be enough Protection. You have a RIGHT to Information and NAR has NO RIGHT to Deny you that Information.
This is VERY Ethical and VERY Consumer Friendly and Would Keep a WHOLE lot of Real Estate Consumers OUT of Trouble. But NAR frowns on this, WHY?
Well it really does not make any sense, I guess they don't want you Screwing up Deals with the Truth. What other Reason would there be ?
Obviously it is in the Real Estate Consumers Best interest to Get More Advice. I mean the more information and ANY Truly Objective information or advice they can get - the better Right? So Why is NAR against this?
State or Federal Laws, who knows what it says about me Giving you Advice. I mean certainly it would NOT be good for the Consumer to Get advice from a Real Estate Broker Owner who MIGHT just TELL them the TRUTH and their Advice is NOT based on whether the Deal Closes or Not. Surely any Real Estate Governing Body would Agree Right?
My State Law Regulators tell me it is questionable, however have not told me that I can't Give or Sell you Advice online. I mean Real Estate Coaches Do it and they have no license. I had a guy tell me that one year alone he spent $75,000 on a real estate coach, yet he kept me on the phone for hours.. I gave him FREE advice of Course Because I was hoping he would buy some Real Estate From me. .. So Why Can't I charge?
Realtors, Real Estate Agents Give FREE advice all the Time..
And if I give Real Estate Advice can it only be in the State I am licensed, or am I ALLOWED to Protect Real Estate Consumers EVERYWHERE with the TRUTH ? NAR and their Ant-Consumer Games are International.
Real Estate Coaches and those Infomercial Guys Sell you Stuff all the Time on how to get Rich in Real Estate and they charge you for online advice or phone advice, so why would it be bad in ANY way if a Real Estate Broker opened shop online to Give you Real Estate Advice even if your already Listed with a Realtor ?
You have a RIGHT to Real Estate Protection, you have a RIGHT to Advice, you have a Right to an Opinion on Your Real Estate Transaction that is NOT based on Whether the Deal Closes.
Mortgage Fraud, Lender Fraud, Non-Disclosure, Realtors Ruining Lives with Flat Out Lies, Silent Fraud, Adverse Material Fact, HUGE Financial Fraud in Real Estate and YOU getting Advice Seems to Be Taboo... ... so many BAD things happening to Real Estate Consumers and YET the Realtor SUPER powers worry about YOU getting advice from a NON-Realtor that Certainly Cannot be Of a HIGHER STANDARD. And they actually have an ETHIC - a Standard of Practice that Claims that a REALTOR cannot INTERFERE with another REALTORS transaction.. what??
Talk about UnEthical, you have a Right to ask another REALTOR if your deal looks right... you have a Right to Protection BEFORE YOUR deal Closes.
Any ASSOCIATION, State Law Maker or
ANYONE denying you this Right is Violating YOU.
So Yes I say I have a Right to Give or To Sell you Real Estate Advice.
You have a Right to Get that Advice, Demand that Advice.
You have a Right to have someone look for Red Flags and to Protect You in your Real Estate transaction and even Negotiate with your Agent for you SHOULD communications break down with your "Realtor" as they often do. You Should NOT have to Simply Sit Down, SHUT up and Take IT.
The National Association of Realtors Huffs and Puffs, and Lobby's with all their might to make sure that you have NO Rights in your Real Estate Transaction.
The main way NAR Keeps Consumers Down and powerless is to NOT hold Realtors accountable for what they do to you, NO Matter How Much Proof you have. Nor Holding Bad Realtors Accountable for the Damage they do to Good Realtors.
NAR should be FIRED, unless they can come up with affective Quality Control Efforts to Clean Up the Mess they have made of the Real Estate Industry.
Crystal@CrystalCox.com
Real Estate Whistleblower
Crystal L. Cox
National Association of Realtors
Ok so I am not a Real Estate Attorney, what do I know Right? Well I have seen the Inside of HUGE lawsuits, I have seen what Real Estate victims go through and as a Broker Owner I know what can happen to you and I can Protect you.
NOW the National Association of Realtors DOES not want a 3rd Real Estate Broker, or even NAR member in the Deal so that is ONE of those National Association of Realtors ETHICS that they do love to WHINE about.
When a Buyer or Seller Would Call me Desperate, and already in Negotiations with Another Realtor, and I was then A Realtor - the NAR Ethics would have me say oh there is Nothing I can do for you, your going to have to Listen to the Realtor Representing you and Giving you Information that is ONLY based on them Getting Paid.
It is UnEthical according to the National Association of Realtors if I Tell you that there is Something Wrong with your Deal and you Could Get Hurt.
Though your Human Rights, Civil Rights, Constitutional Rights would say you CERTAINLY do have a Right to 3rd Party advice whether it Free or you pay for it.
Why can you hire a Real Estate Attorney, pay them a wage to give you advice but not also get another Real Estate Broker to tell you What they Think of the Deal and you pay them for that Time - REGARDLESS if you Close the Deal OR Not?
Real Estate Attorneys Do not know all that goes on behind the Closed Doors of a Realtors Real Estate Transaction and they may not be enough Protection. You have a RIGHT to Information and NAR has NO RIGHT to Deny you that Information.
This is VERY Ethical and VERY Consumer Friendly and Would Keep a WHOLE lot of Real Estate Consumers OUT of Trouble. But NAR frowns on this, WHY?
Well it really does not make any sense, I guess they don't want you Screwing up Deals with the Truth. What other Reason would there be ?
Obviously it is in the Real Estate Consumers Best interest to Get More Advice. I mean the more information and ANY Truly Objective information or advice they can get - the better Right? So Why is NAR against this?
State or Federal Laws, who knows what it says about me Giving you Advice. I mean certainly it would NOT be good for the Consumer to Get advice from a Real Estate Broker Owner who MIGHT just TELL them the TRUTH and their Advice is NOT based on whether the Deal Closes or Not. Surely any Real Estate Governing Body would Agree Right?
My State Law Regulators tell me it is questionable, however have not told me that I can't Give or Sell you Advice online. I mean Real Estate Coaches Do it and they have no license. I had a guy tell me that one year alone he spent $75,000 on a real estate coach, yet he kept me on the phone for hours.. I gave him FREE advice of Course Because I was hoping he would buy some Real Estate From me. .. So Why Can't I charge?
Realtors, Real Estate Agents Give FREE advice all the Time..
And if I give Real Estate Advice can it only be in the State I am licensed, or am I ALLOWED to Protect Real Estate Consumers EVERYWHERE with the TRUTH ? NAR and their Ant-Consumer Games are International.
Real Estate Coaches and those Infomercial Guys Sell you Stuff all the Time on how to get Rich in Real Estate and they charge you for online advice or phone advice, so why would it be bad in ANY way if a Real Estate Broker opened shop online to Give you Real Estate Advice even if your already Listed with a Realtor ?
You have a RIGHT to Real Estate Protection, you have a RIGHT to Advice, you have a Right to an Opinion on Your Real Estate Transaction that is NOT based on Whether the Deal Closes.
Mortgage Fraud, Lender Fraud, Non-Disclosure, Realtors Ruining Lives with Flat Out Lies, Silent Fraud, Adverse Material Fact, HUGE Financial Fraud in Real Estate and YOU getting Advice Seems to Be Taboo... ... so many BAD things happening to Real Estate Consumers and YET the Realtor SUPER powers worry about YOU getting advice from a NON-Realtor that Certainly Cannot be Of a HIGHER STANDARD. And they actually have an ETHIC - a Standard of Practice that Claims that a REALTOR cannot INTERFERE with another REALTORS transaction.. what??
Talk about UnEthical, you have a Right to ask another REALTOR if your deal looks right... you have a Right to Protection BEFORE YOUR deal Closes.
Any ASSOCIATION, State Law Maker or
ANYONE denying you this Right is Violating YOU.
So Yes I say I have a Right to Give or To Sell you Real Estate Advice.
You have a Right to Get that Advice, Demand that Advice.
You have a Right to have someone look for Red Flags and to Protect You in your Real Estate transaction and even Negotiate with your Agent for you SHOULD communications break down with your "Realtor" as they often do. You Should NOT have to Simply Sit Down, SHUT up and Take IT.
The National Association of Realtors Huffs and Puffs, and Lobby's with all their might to make sure that you have NO Rights in your Real Estate Transaction.
The main way NAR Keeps Consumers Down and powerless is to NOT hold Realtors accountable for what they do to you, NO Matter How Much Proof you have. Nor Holding Bad Realtors Accountable for the Damage they do to Good Realtors.
NAR should be FIRED, unless they can come up with affective Quality Control Efforts to Clean Up the Mess they have made of the Real Estate Industry.
Crystal@CrystalCox.com
Real Estate Whistleblower
Crystal L. Cox
National Association of Realtors
Sellers Contributions or Kick Back of Any Kind is Mortgage Fraud, Banking Fraud, Tax Fraud and Creates a FALSE Real Estate Market.
Sellers Kick Back - Sellers Contribution at Closing - Sellers Cash Back
Sellers Giving Buyers Money for Any Reason Creates False MLS Data, and is Fraud on the Banking Industry, I don't Care what your Realtor tells you....
Still the Banking Industry with the Help of the Realtors and I Guess the Mortgage Broker are Convincing Sellers that it is Ok and Legal to to Participate in "Sellers Contributions" or other ways that a Seller Ends up Giving a HUGE amount of Money back to the Buyer.
Oftentimes it is done Like this and The Mortgage Broker Calls it a Sellers Contribution.
The purchase price is Say $200,000 and the offer Comes in at $215,000 and the contract says that the Seller Will Contribute or whatever Wording works good in your area, it is still the same meaning... the Lender takes this as the Buyers Down Payment so they can FORCE the Buyers Loan THROUGH when Really the Buyers Does not have a down payment. Oftentimes this is even given back as Cash the Same Day as Closing, Flat Out CASH to the BUYER and the REALTOR tells the Seller it is Legal. Wonder if the Realtor Gets any Kick Back from Deals Like This? Anyway...
the Lender KNOWS, because the Lender Sees the Buy Sell Contract, they know that the BUYER does not REALLY have the Down payment, so what do they do CHANGE the Contract to Submit it to their Loan Approval Department ?
Appraisers Know, because most ask me for a Copy of the BUY - SELL so they can then make an Un-Biased Objective Market "Opinion" on the Value of Your Home.
So it is Just Matter of Fact, and No one Seems to Be Concerned, or Was ever Concerned that it was Creating "Values" that were not real and people were paying Higher and Higher Prices based on FALSE - MisLeading SOLD Data.
The Motivation - greed of course because these Middle Man Lenders, Mortgage Brokers that Deal With Lenders that Deal with Banks and on and on, often times they Get Commissions for the Life of the Loan which Can REALLY ad UP. The Realtor who pushes the deal gets the One Time Commission... well more on that later.. (there are oftentimes other kick backs)
Sellers Contributing Money to Buyers so they Can Get a Loan is Bad for Comparable SOLD Data, it is Bad for the Fraudulent Bank Loans that Put the Homes Value quite a bit higher, it is Fraud on the banking industry no matter how you look at it, it is Bad for the Seller as they Pay Capital Gains Tax on this Money - most won't mind because it is included in their Free Equity with the Capital Gains Exclusion - which is Still Fraud on Someone.
There is no Rational way to Say it is OK, it is Simply NOT the SOLD Price, and it makes the SOLD Data Wrong which affects the Next Sale. It is FRAUD, no matter what anyone is telling you.
If the only way a Buyer Can Buy a Seller's Real Estates For Sale is if the Seller Fakes a Down Payment so the Lender thinks that the Down Payment is Coming from the Buyer and will therefore give the Loan, Well then the Buyer Cannot Afford the Property and Will eventually Lose it Anyway.
From the Seller's perspective, many take the Deal because they NEED and Want to Sell and they don't worry of the Tax because it is Tax Free money anyway. So the Buyer gets the Property with no money down, and NOT with a NO Money Down Loan... the Lender makes it look like there is a Substantial Down Payment.
Still in 2010 this is Going on, after Trillions in Bank Bailouts Due to the Fraudulent Secondary Loan market, Still the Realtors are in the Field Bringing Contracts that Make it So the Buyer is Getting their down Payment from the Seller. And Shocking but I am Getting Reports that not only is this going on for Down Payments but to actually give Cash Back to the Buyers.
And the Realtors are Telling the Sellers that this is Absolutely Legal. You see the Buyer gets this money the day of Closing, so what in the World would STOP the buyer from taking the Cash Back saving it, staying in the home til' the bank throws them out.
Then After months of Free Rent when Foreclosure finally happens - the Buyer just walks away, Cash Stowed away and Money Ahead. Or the Buyer may use this money for the payments for awhile til' the get on their feet per say. The thing is, that Buyer Could not afford the Home. And this Real Estate Transaction Scenario is bad for the Real Estate Industry and Should be Regulated.
And it all Originates with the Realtor pushing the Deal on the Seller so the Realtor Gets Paid, Now it looks like the Seller gets Paid too. The thing is, in the long run the bottom of the Game Falls out, because it raises the VALUE in the MLS Data and the Next Person to buy, say the house next door, the Appraiser does not know to Compensate 0r Change the Data on SOLD information to "Correct" for a Scam that he did not know about.
So we know that the Seller is Liable for the Extra Money they did not really get, because the Tax Man looks at the Settlement Statement and you Pay based on the Selling Price. Now if there is a 1031 Exchange involved, where does this leave the Seller Kick Back Scam. Well then I guess it would be some sort of Tax Fraud.
Because your Exchanging the $200,000 you REALLY got, but the Paperwork says you Got More then that... how do Realtors Explain that to Sellers. It looks to me like the Realtor just gets loud and Says it is Legal and the Seller Sits down and Shuts up...
Now What about the Buyers Tax Consequences in this Situation?
Well when the buyer goes to Sell the Property. They Paid $215,000 - yet they Really Paid $200,000 so if they sell for $215,000 they have no gain right? But in Reality they Really Do have a Tax Gain. And this is Legal to the Realtor, to all who let this Contract go through... which would include the Title Companies, the Lenders, Banks and Mortgage Brokers?
Also what about the Buyers Income Tax, Well they were Flat out Given $15,000 and they won't claim it because the Seller Claimed it and it was Tax Free, if it was Capital gains to the Seller and not part of their "Exclusion" well then the Seller Paid the Buyers Tax based on Capital Gains when Really it was Income and Income to The Buyer.
Does the Realtor Disclose to the Buyer that when they Sell, their Tax base is $215,000 and not $200,000? From what I see when this situation arises - no one explains - DISCLOSES any of this implications of all of this To Anyone.
No one is Policing the Real Estate Industry, the Ground Level where the real corruption and problem is No One is Looking. And well the Players at that Level they are Just trying to Make a Living and they don't get paid for their Hard Work unless there is a Closing.
So the Pressure To Close the Deal Surpasses the Integrity of the Deal and the Protection of the Consumer gets lost along the way. Meanwhile, the False Values and MLS Data increasingly Becomes False and then SHOCKING now people have loans for more then their real estate is worth. And the Lenders that allowed this Fraud - that Blatantly Allowed Appraisals to Come in High and that allowed Sellers Contribution that Created the Market Collapse - they Get a Bail Out. The Home Owner should Flat Out Get a Debt Reduction.
Lenders, Banks, Local And Federal Governments are Ignoring this is Fraudulent Behavior that affects every aspect of the Real Estate Industry.
This is Fraud Against the Stock Markets based on the Secondary Lending Market, which Let's Face it the Entire Economy is Rooted in the Real Estate Industry and without integrity there, without real values and The Controlling of False Bubbles a Collapse is Un-Avoidable. Never think they did not see it coming, they created it and the socked away plenty of Money for the Cartel at the Top of the Lending Industry.
Realtors in All this, well they Do the Dirty Work. And most just want to Close the Deal and do not look at the big picture of what it is doing to the market. The Realtor, as does the other parties to the Transaction, they just want a pay check.
IT is up to the Regulators of the Real Estate and Lending, Banking Industry to STOP this madness and even in an Economic Collapse and Real Estate BUBBLE Big Time Burst, this Stuff is Still Going on. Oh wait there is No Regulators... and the "Voice of Real Estate" THE " National Association of Realtors" well they don't care and they are NOT interested in Lobbying for things that actually HELP the Real Estate Consumer.
And the Realtor in all this, is Telling the Sellers it is Legal, and So is the Mortgage Broker. And the Realtor is NOT disclosing the Tax Consequences, the Mortgage Fraud Aspects and simply pushing the deal through.... even Right Now Today...
The Real Estate Industry is Broken and NEEDS a Complete Makeover - RIGHT NOW....
National Association of Realtors, SEC Violations, Anti-Trust Violations, RICO Lawsuit.
More on my Yammerings on the Real Estate Industry at
Sellers Giving Buyers Money for Any Reason Creates False MLS Data, and is Fraud on the Banking Industry, I don't Care what your Realtor tells you....
Still the Banking Industry with the Help of the Realtors and I Guess the Mortgage Broker are Convincing Sellers that it is Ok and Legal to to Participate in "Sellers Contributions" or other ways that a Seller Ends up Giving a HUGE amount of Money back to the Buyer.
Oftentimes it is done Like this and The Mortgage Broker Calls it a Sellers Contribution.
The purchase price is Say $200,000 and the offer Comes in at $215,000 and the contract says that the Seller Will Contribute or whatever Wording works good in your area, it is still the same meaning... the Lender takes this as the Buyers Down Payment so they can FORCE the Buyers Loan THROUGH when Really the Buyers Does not have a down payment. Oftentimes this is even given back as Cash the Same Day as Closing, Flat Out CASH to the BUYER and the REALTOR tells the Seller it is Legal. Wonder if the Realtor Gets any Kick Back from Deals Like This? Anyway...
the Lender KNOWS, because the Lender Sees the Buy Sell Contract, they know that the BUYER does not REALLY have the Down payment, so what do they do CHANGE the Contract to Submit it to their Loan Approval Department ?
Appraisers Know, because most ask me for a Copy of the BUY - SELL so they can then make an Un-Biased Objective Market "Opinion" on the Value of Your Home.
So it is Just Matter of Fact, and No one Seems to Be Concerned, or Was ever Concerned that it was Creating "Values" that were not real and people were paying Higher and Higher Prices based on FALSE - MisLeading SOLD Data.
The Motivation - greed of course because these Middle Man Lenders, Mortgage Brokers that Deal With Lenders that Deal with Banks and on and on, often times they Get Commissions for the Life of the Loan which Can REALLY ad UP. The Realtor who pushes the deal gets the One Time Commission... well more on that later.. (there are oftentimes other kick backs)
Sellers Contributing Money to Buyers so they Can Get a Loan is Bad for Comparable SOLD Data, it is Bad for the Fraudulent Bank Loans that Put the Homes Value quite a bit higher, it is Fraud on the banking industry no matter how you look at it, it is Bad for the Seller as they Pay Capital Gains Tax on this Money - most won't mind because it is included in their Free Equity with the Capital Gains Exclusion - which is Still Fraud on Someone.
There is no Rational way to Say it is OK, it is Simply NOT the SOLD Price, and it makes the SOLD Data Wrong which affects the Next Sale. It is FRAUD, no matter what anyone is telling you.
If the only way a Buyer Can Buy a Seller's Real Estates For Sale is if the Seller Fakes a Down Payment so the Lender thinks that the Down Payment is Coming from the Buyer and will therefore give the Loan, Well then the Buyer Cannot Afford the Property and Will eventually Lose it Anyway.
From the Seller's perspective, many take the Deal because they NEED and Want to Sell and they don't worry of the Tax because it is Tax Free money anyway. So the Buyer gets the Property with no money down, and NOT with a NO Money Down Loan... the Lender makes it look like there is a Substantial Down Payment.
Still in 2010 this is Going on, after Trillions in Bank Bailouts Due to the Fraudulent Secondary Loan market, Still the Realtors are in the Field Bringing Contracts that Make it So the Buyer is Getting their down Payment from the Seller. And Shocking but I am Getting Reports that not only is this going on for Down Payments but to actually give Cash Back to the Buyers.
And the Realtors are Telling the Sellers that this is Absolutely Legal. You see the Buyer gets this money the day of Closing, so what in the World would STOP the buyer from taking the Cash Back saving it, staying in the home til' the bank throws them out.
Then After months of Free Rent when Foreclosure finally happens - the Buyer just walks away, Cash Stowed away and Money Ahead. Or the Buyer may use this money for the payments for awhile til' the get on their feet per say. The thing is, that Buyer Could not afford the Home. And this Real Estate Transaction Scenario is bad for the Real Estate Industry and Should be Regulated.
And it all Originates with the Realtor pushing the Deal on the Seller so the Realtor Gets Paid, Now it looks like the Seller gets Paid too. The thing is, in the long run the bottom of the Game Falls out, because it raises the VALUE in the MLS Data and the Next Person to buy, say the house next door, the Appraiser does not know to Compensate 0r Change the Data on SOLD information to "Correct" for a Scam that he did not know about.
So we know that the Seller is Liable for the Extra Money they did not really get, because the Tax Man looks at the Settlement Statement and you Pay based on the Selling Price. Now if there is a 1031 Exchange involved, where does this leave the Seller Kick Back Scam. Well then I guess it would be some sort of Tax Fraud.
Because your Exchanging the $200,000 you REALLY got, but the Paperwork says you Got More then that... how do Realtors Explain that to Sellers. It looks to me like the Realtor just gets loud and Says it is Legal and the Seller Sits down and Shuts up...
Now What about the Buyers Tax Consequences in this Situation?
Well when the buyer goes to Sell the Property. They Paid $215,000 - yet they Really Paid $200,000 so if they sell for $215,000 they have no gain right? But in Reality they Really Do have a Tax Gain. And this is Legal to the Realtor, to all who let this Contract go through... which would include the Title Companies, the Lenders, Banks and Mortgage Brokers?
Also what about the Buyers Income Tax, Well they were Flat out Given $15,000 and they won't claim it because the Seller Claimed it and it was Tax Free, if it was Capital gains to the Seller and not part of their "Exclusion" well then the Seller Paid the Buyers Tax based on Capital Gains when Really it was Income and Income to The Buyer.
Does the Realtor Disclose to the Buyer that when they Sell, their Tax base is $215,000 and not $200,000? From what I see when this situation arises - no one explains - DISCLOSES any of this implications of all of this To Anyone.
No one is Policing the Real Estate Industry, the Ground Level where the real corruption and problem is No One is Looking. And well the Players at that Level they are Just trying to Make a Living and they don't get paid for their Hard Work unless there is a Closing.
So the Pressure To Close the Deal Surpasses the Integrity of the Deal and the Protection of the Consumer gets lost along the way. Meanwhile, the False Values and MLS Data increasingly Becomes False and then SHOCKING now people have loans for more then their real estate is worth. And the Lenders that allowed this Fraud - that Blatantly Allowed Appraisals to Come in High and that allowed Sellers Contribution that Created the Market Collapse - they Get a Bail Out. The Home Owner should Flat Out Get a Debt Reduction.
Lenders, Banks, Local And Federal Governments are Ignoring this is Fraudulent Behavior that affects every aspect of the Real Estate Industry.
This is Fraud Against the Stock Markets based on the Secondary Lending Market, which Let's Face it the Entire Economy is Rooted in the Real Estate Industry and without integrity there, without real values and The Controlling of False Bubbles a Collapse is Un-Avoidable. Never think they did not see it coming, they created it and the socked away plenty of Money for the Cartel at the Top of the Lending Industry.
Realtors in All this, well they Do the Dirty Work. And most just want to Close the Deal and do not look at the big picture of what it is doing to the market. The Realtor, as does the other parties to the Transaction, they just want a pay check.
IT is up to the Regulators of the Real Estate and Lending, Banking Industry to STOP this madness and even in an Economic Collapse and Real Estate BUBBLE Big Time Burst, this Stuff is Still Going on. Oh wait there is No Regulators... and the "Voice of Real Estate" THE " National Association of Realtors" well they don't care and they are NOT interested in Lobbying for things that actually HELP the Real Estate Consumer.
And the Realtor in all this, is Telling the Sellers it is Legal, and So is the Mortgage Broker. And the Realtor is NOT disclosing the Tax Consequences, the Mortgage Fraud Aspects and simply pushing the deal through.... even Right Now Today...
The Real Estate Industry is Broken and NEEDS a Complete Makeover - RIGHT NOW....
National Association of Realtors, SEC Violations, Anti-Trust Violations, RICO Lawsuit.
More on my Yammerings on the Real Estate Industry at
National Association of Realtors, Sellers Contribution
Subscribe to:
Posts (Atom)
