Charlie Ragonesi Big Canoe Realestate's Blog

Subject to Settlement, A cautionary message

This message applies to us in real estate but also applies to business in general. Here in Georgia the money goes into Escrow and then is dispersed. So If a buyer ,which happens most of the time, gives us a check for the Earnest money, I want it with enough time to clear. This is standard practise.

But what if a buyer or a renter, for that matter, wires you the money. This is a great way to get funds because you do not have to worry about them right? Not 100 percent right. The funds are given to you subject to settlement. This means that the sender of the funds has till the closing of the fed on that day to revoke the transaction. This happens VERY VERY rarely. But it does happen. So even if you are taking a wire make sure you have a day between you and the time the funds are being dispersed. You could be in for a nasty surprise. This goes for our business as well as others who are in business reading this post

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Charlie Ragonesi All Mountain Realty Big Canoe and Mountain Blog

On line at www.allmountainrealty.com Call at 706 579 1098

We sell Homes                                                    

 

2 comments • Charlie Ragonesi Big Canoe, Jasper, North Georgia Pros • November 04 2010 08:58AM

Bank of America stops foreclosures

Today Bank of America stopped the foreclosure process in all 50 States. If you are in the housing market this is NOT good news. But the reasons for why they had halt are not good either. With out Bank bashing lets look realistically at the situation.

The banks got into a financial tail spin. So they cut costs (i.e. lay folks off). Then there are banks failures and the strong start to gobble up the weak.  The housing crisis explodes.the number of short sales along with foreclosures. So more work is needed to be processed with less people. To make matters worse a lot of the work comes from banks who the big boys gobbled. So the folks handling the work do not understand the other banks systems and since most of the other folks were laid off there is no one to explain things.

As the work piles up Banks turn to outsourcing( Asset Management companies). Is it any wonder that people who are working 6 days a week 10 hours a day 2 years later are cutting corners? The real tragedy is that the banks have had 2 years to get this under control and have not.

Here is hoping Congress does nothing stupid and lets the business folks work through this. However the Banks should report to the regulators how they are fixing this problem. So you might ask why did they not hire more people? Think about it. They are selling short or losing in foreclosure on every deal . Where is the incentive to increase the cost of processing these things?

It is a big mess but a complicated one too. Stay tuned !!

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Charlie Ragonesi All Mountain Realty Big Canoe and Mountain Blog

On line at www.allmountainrealty.com Call at 706 579 1098

We sell Homes                                                    

 

4 comments • Charlie Ragonesi Big Canoe, Jasper, North Georgia Pros • October 08 2010 02:33PM