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  Topic Review (Newest First)
12-18-2012 12:09 AM
BPWY Nice catch. LMFAO
12-17-2012 11:43 PM
PropPresPro
Quote:
Originally Posted by 4square View Post
. . .subs just suck it up and simply dismiss it as the cost of dong business. . .
Was that spelling error Freudian or what!
12-17-2012 12:26 PM
thanohano44
Quote:
Originally Posted by david View Post
if banks would take over and let contractors handle things state by state we'd be much better off,i've had numerous realtors tell me this is how it use to be and got all screwed up when nationals took it over,now you have regionals wating a job done that cost 900.00 to do and want to pay 500.00 if im gonna get a screwing im surely gonna enjoy it
While your are. 100% correct, the banks don't care. Nationals and regionals sold the banks on the idea of being the property management firm.

Highlighting the following benefits for servicing/lenders:
1) reduce costs by eliminating their in house property management and remarketing departments. WIN WIN for them.

2) they will absorb all liability for what happens to each property. This reducing liability for the banks/servicer. WIN WIN again.

3) they will do it for the prices they have set forth if volume requirements are met. Imagine millions of properties not only covered by CPI but also large contractors GL policies.

4) if work is not done to their standards, the work gets done free. WIN WIN


Repeat for regional

Remember, the REO and remarketing business is NOT the same as residential sales. The banks have already lost money and want to get these properties moved ASAP at the lowest cost possible. Each property is assigned a value, given a price point by the AM. If you have a awesome broker who is intelligent enough and has a track record to speak of, they can get more $ applied to the same property.

In The metro Phoenix area, its rare that the AM's will approve anything beyond, carpet, paint, re glazed windows, or landscaping beautification. Maybe they will complete pool repairs. We once finished a deck the home owner didn't complete. The AM wanted it removed. The broker demanded it be finished, have them the reason and voila, it was completed. Rehabs on REO's are usually completed.

This is why I prefer PPO work orders over REO. Rehabs aren't done on PPO properties because the bank doesn't own them outright yet. Check your states right to redemption etc. in 8 years, we have done 2 large bid approvals on PPO properties. The bids were approved due to the department of health, HOA, neighbor complaints and daily fines.
12-17-2012 10:35 AM
Splinterpicker
Quote:
Originally Posted by david View Post
if banks would take over and let contractors handle things state by state we'd be much better off,i've had numerous realtors tell me this is how it use to be and got all screwed up when nationals took it over,now you have regionals wating a job done that cost 900.00 to do and want to pay 500.00 if im gonna get a screwing im surely gonna enjoy it
BAnks
(1) Don't want the hastle
(2) with a national or regional have an additional layer or 3 of liability and target to point the finger at.
(3) are NOT in the forclosure business by choice. They want your payment tnd that is IT.
12-17-2012 08:37 AM
david
hi

if banks would take over and let contractors handle things state by state we'd be much better off,i've had numerous realtors tell me this is how it use to be and got all screwed up when nationals took it over,now you have regionals wating a job done that cost 900.00 to do and want to pay 500.00 if im gonna get a screwing im surely gonna enjoy it
12-17-2012 06:31 AM
GTX63 You thinking like the average Joe and that is why it doesn't add up. If a National issued you a chargeback without being chargedback by the client or issuing them a credit, that would be fraud. However, lawyers and pinheads write up contracts and bids with legalese that eliminate that legal hoop so they are able to sting you and keep the green.
12-17-2012 01:07 AM
4square
Where our money goes.

To truly understand the problem with not getting paid, you have to understand the positionong of the regional and national service companies that are monopolizing the market. The first and most significant impact to the preservation world has been the acquisition of BOA by Safeguard.

The service companies develop a set of rules designed to increase their own percentatge on almost every job. They actually hire people to grind down invoices, in order to maintain their profit margins. For example, lets say the primary contracor (national/regional service company) receives $100 from a bank for an initial lawn cut. The sub-contractor would normally receives $45, if the job is completed to their requirements. If not, deductions are made, $5, $10, $20 or the full amount of the job, just because a photo is missing for edging, but clearly show the before and after state of the lawn. Obviously, it was cut. But because they claim the bank has, or is going to back bill them, we get 0. The most famous of the excuses is the old, not taken from the same angle or not at the same distance. Man! that burns my *^%.

Another issue is that we never know whether the bank actually back billed the primary?? If they weren't, where is the the $$$ that was deducted from the invoice. The service company just got that job completed for 0 dollars, but received 100 from the bank. That is a profit of 100%. I have never received a credit back, without fighting for it. Most of the time, subs just suck it up and simply dismiss it as the cost of dong business.

I figure I lose between 7-10k a year on unjustified charge backs. Sometimes they are corrected and sometimes they are not. Because so many people are out of work, relpacing a sub who confronts the backcharge issue finds themselves cut off until they behave or just completely cut off. or their work load reduced to a point that the cost to perform the work, out weighs the payout.. The key to your investigation, will be to determine, whether the nationals/regionals actually were back charged the amount deducted from the subs invoice.
12-17-2012 12:20 AM
mtmtnman
Quote:
Originally Posted by Wannabe View Post
Swift,

Call the guy I stated. He is the main man.
Oh boy!! I'll be watching the southeast sky in the morning for the mushroom cloud!!!!!!!!
12-17-2012 12:01 AM
BPWY
Quote:
Originally Posted by Wannabe View Post
Swift,

Call the guy I stated. He is the main man.




LMAO


You are mean.
12-16-2012 11:54 PM
SwiftRes Will do. Thank you.
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