The Blog Dog .net

OneWest Bank Releases Their First Year Profit Statement $1.6 Billion- You Won't Believe This One!

Kudos to Scott Reckard with the LA Times.  He wrote an article today that is sure to open some eyes.  The article, titled "OneWest Bank Profit: $1.6 Billion" does an excellent job of pointing out some very interesting observations.

According to the article, OneWest paid the FDIC $1.55 Billion for the failed IndyMac Bank, and turned a profit of $1.57 Billion in it's first year.  The article specifically addresses the shared-loss agreement that was also put in place by the FDIC, which is expected to cost the FDIC nearly $11 Billion.

The reason I'm posting this article is that it dovetails perfectly into my blog titled "Is The FDIC Killing OneWest IndyMac Short Sales" in September/2009.  The blog, which ended up being the basis of the recent video produced by Think Big Work Small (without my knowledge or consent, by the way) deals with a transaction I handled for one of my clients with OneWest Bank.  Rather than go into all of the details of the blog you can read it here.  But basically, it centered on shared-loss deals, and how they are creating a disadvantage for consumers trying to accomplish loan modifications or short sales.

The FDIC was so upset with the video that they decided to issue an official press release on Friday, February 12th.  The LA Times article specifically states that the FDIC refused to comment today on the profit statement released by OneWest today.  

So let me get this straight...  The FDIC issues an official press release on a YouTube video, but doesn't want to talk to anyone about the profits OneWest just reported today, and the possible effects of the shared loss agreement they have in place with them?  Interesting.  Anyway, enjoy the article.  This story is beginning to "grow legs", as they say.  With 93 other loss share agreements in place, according to a recent Business Journal article, I'm sure this is something we will all hear more about in the very near future.

Oops, I spoke to soon!  While writing this article, I just found out that the FDIC just issued ANOTHER press release, this time announcing that they just sold La Jolla Bank in La Jolla, CA to, guess who?  You got it, OneWest Bank!  And guess what?  That's right, they signed yet another Loss Share Agreement with them as well.  Well, that makes a total of 95 loss share agreements, and counting!

Folks, it's time to stop this madness.  The LA Times article shows what this program is costing the American Taxpayer.  Some, like the FDIC (and their banker buddies) will tell us time and time again that the FDIC receives no taxpayer dollars, and is funded wholly by the FDIC premiums charged to the banks.  Think about it... When banks have to pay more for increased premiums, where do you think they get the money?  Quite simply, they raise their rates to YOU, the consumer, to cover these additional expenses.  And, when they finally run out of money, they have a nice little $500 Billion "Credit Card" they can use at the U.S. Treasury.  Where do you think this money comes from?  Correct...  YOU, the taxpayer.

So do your part and help spread the word.  It's time to stop asking questions, and start demanding answers from our fearless leaders in Washington.  Don't just read this and get mad.  Read this and share it with all you know.

Bob Hertzog

www.foreclosureuturn.com

In the last month I have had a few sellers that have taken their Logan Utah homes off the market. They decided they just wanted to wait until spring time, and didn't want their homes to become stale on the market. Some of these seller's homes were on the market for some time, and I couldn't talk them into reducing their prices. The market had spoken, their homes were overpriced.

Just because you wait to sell in the spring doesn't mean your home is priced to sell.

Everyone knows in the real estate business, spring time is the busiest time of the year. There are more buyers in the spring, but there is also a lot more competition.

If your home is on the market for an extended amount of time, the worst thing you can do is take it off the market and wait to price it exactly the same a few months down the road when you are going to have twice the competition.

 

Here's Why:

• The market has already shown your home isn't priced correctly, if it was, it would have sold no matter what season it is. Price is the #1 factor for selling a home, no matter what condition it is, if it's priced correctly, you can sell it.
• Your mortgage payment isn't going to go away. Every month you stay in your home, you have to pay for your mortgage. Which means more money you pay your lien holders in interest. That money is gone forever.
• The longer your home is on the market, the more behind the market it becomes. If your home was priced competitively in the first month, but soon after you start noticing homes selling in your price range for less then what they were the month before, you have to adjust your strategy. It may have been priced right 3 months ago, but how does it compare today? The real estate market is a living creature, it changes, and no one knows where it's going until it has already been. Price your home ahead of the market.
• If you think it's going to be hard to sell your home in the winter, imagine how hard it's going to be when inventory goes up 30%.

Now, don't get me wrong, I understand you need a certain amount of money out of your home. The problem with that thinking is, the market doesn't care how much money you need out of your home. The market doesn't care that you can't sell your home for the price the market says it's worth. The market provides the price a buyer is willing to pay, and nothing more.

Take a deep breath, look at the facts, and think about your motivations for selling your home. If you can't price your home at the price the market dictates now. Why would you want to wait until the busiest time of the year, with more competition, higher interest rates and then price it at the same as you did with less competition, better interest rates, and in a market that is heading into the unknown?

What are your motivations for selling? Are you relocating? Are you trying to move into a bigger home? Are you downsizing?

If you have all the time in the world to wait out the market, that's great and you are in a unique situation, but be prepared to wait a long time. If you want to sell your home fast, price it to sell in today's market, and you will actually save a lot of money in the long run.

This market is, to be blunt, insane. No one knows what's going to happen over the next few months, and if you wait until the grass is greener on the other side, you may find that someone has poisoned the grass.

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Lisa Udy, Logan Utah Real Estate  Copyright © 2009

If you are considering buying or selling a home in Utah, you deserve local expertise and advice to be provided by a professional in real estate. Lisa Udy, is a Utah REALTOR® providing full time, professional real estate services to home buyers and sellers in the cities of Logan, Providence, North Logan, Hyde Park,  Smithfield,   Richmond,  Nibley, Lewiston, Cornish, Trenton, Amalga, Clarkston,  Newton, and all surrounding cities in the  Cache County Northern Utah area.

You may be relocating to or from Utah due to any number of reasons , whatever the case, when searching for a real estate professional outside the state of Utah, please feel free to Contact Me or call me at 435-881-3022 as I am more than honored to provide to you the contact information of exceptional agents across the U.S.

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