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Friday, March 12, 2010

Local Lending is the way to go!

Today’s world of real estate is to say the least, interesting. Sellers have to compete with short sales, foreclosures and a host of other problems plaguing the market. Is there hope? Yes, of course, but first we must realize that as real estate professionals, we need to be extremely knowledgeable and patient.
No longer is it good enough to just show homes and write a contract and go to a closing. We must be the calming voice of reason in a storm of ever changing rules and regulations. More and more, the real estate agent is the one that holds the deal together all the way thru the process. We must never assume that everyone is on the same page in today’s world of real estate transactions. The front man for the lender claims to want to get the deal done when in reality he has no control over the process at all. The loan is in the hands of an “underwriter” who is nameless, faceless and views themselves as all powerful. The underwriter’s in today’s world of real estate look for reasons to reject a loan, not approve it. So we need to be half real estate agent and half counselor. People believe they are approved only to be told at the last minute they are not or that they need something that the underwriter has already received several times. Frustration can sometimes boil over into anger, so we must have a patient approach with both buyer’s and seller’s. Both buyer’s and seller’s do not understand when rules change in the middle of a transaction. To be honest, I am sure most agents don’t understand this as well. Our system in place at present looks to cover all involved, so blame can be deflected in case of a problem. No one involved seems to want to “pull the trigger” on the deal, so it’s easier to just say no, or throw up so many roadblocks the consumer just walks away in disgust. When you add asset managers to the mix on foreclosures and short sales you have a whole different dynamic, when it comes to problems and grief.
The solution we are finding effective is an old one, but a very good one. Local lenders have gotten back in the lending business in a big way. Yes they can and do sell the note, but more and more they are holding on to the note and servicing the account themselves. They know about local conditions and community needs far better than the big faceless giants that helped create the mess we are in today. One of the greatest things occurs when dealing with a local lending source to, the buyer has interaction on a consistent basis with their banker or loan officer and foreclosures come down. Wow, personal attention equals better returns! Who would have ever thought? Truth be told, everyone thought this, in this great country. Everyone but the ones who created the mess we are in today, that is.
So it’s simple really, build your brand locally with strong affiliations with lenders in your own town and you can and will grow your business in ways you can only dream of. Also, seek out the best training and knowledge available from a real estate company in your area.

Terry Miller
Keller Williams Tyler, Texas
903-534-6600 email:


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