Due to my high visibility online as a Sacramento short sale agent, I receive a lot of email spam, much of it centering on short sales. When I received an email from Program 3648, I deleted it, and all those that came after it. I mean, who calls itself Program 3648 -- is this the X-Files?
But on Wednesday, I stopped to read one of these emails. The email aroused my suspicions because it talked about Administration Policy and promised full commissions on short sales, while naming a bunch of major lenders. I know that full commission is an impossible guarantee. Red flag. I also noted the email was absent a company name but sported a Washington, D.C. address, made to look like it could be a government-sponsored entity. #2 red flag.
So, I decided to check it out and signed up for the Program 3648 webinar. It started out innocent enough. To qualify for the program, an agent must:
- Be full-time
- Have short sale experience
- Be able to handle at least 15 short sale listings
- Possess a proactive approach
- Maintain a proper mindset
That last 2 requirements were a bit peculiar because every successful short sale agent I know has those qualities. To push a "proactive approach" or "proper mindset," well, those are not things one would promote to an experienced real estate agent. It's insulting. But it's new information to an inexperienced agent. #3 red flag.
Program 3648 also sports a little icon as its logo. It looks suspiciously like a government symbol with an eagle in the middle and lettering so tiny you can't read it, but it's not a government entity. #4 red flag.
Basically, this is how the program was laid out. An agent pays an upfront fee, signs a 6-month contract and agrees to pay a triple-digit monthly fee to Program 3648. In return, the agent receives training on how to become a short sale listing agent . . . Wait. Didn't they just say they wanted experienced short sale agents? #5 red flag.
The agent will receive a list of 150 leads. These leads consist of homeowners who are 30 days or more behind in their mortgage payments. If an agent wanted to find a list of homeowners who have a Notice of Default filed against their homes, this information is available for free in the Sacramento County public records. The idea is agents then call or send direct mail to the homeowners, in essence, the program purports to turn real estate agents into telemarketers. #6 red flag.
What busy and successful short sale agent would want to do telemarketing? Probably none. But a brand new agent who has no business might be tempted to sign up for this program.
Program 3648 also provides all the short sale negotiation for the agent. Gosh, I hope Program 3648 is a licensed real estate broker because only real estate brokers or lawyers can collect a commission, regardless of what they call it, to negotiate a short sale.
But the weird twist is the listing agent somehow charges the short sale buyer 1% of the sales price and makes the buyer pay its negotiation fee, 20% of which is rebated to the listing agent. Why would a buyer agree to pay a commission of 1% to the listing agent and the listing agent's third-party negotiator? #7 red flag.
I disconnected at that point. How many red flags does an agent need? I can already hear the lawyers at Lyon Real Estate having conniption fits over this.
Photo: Big Stock Photo
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Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available through bookstores everywhere and at Amazon.com.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
Sheesh. I wonder how many desperate agents have signed up for this?
It is a compliment to your success that you are getting spam email and unwelcome telemarketing calls, I guess.
Cheers,
Robin
Elizabeth, I hope zero agents signed up, thanks for the heads up, that is crazy. Fraud helped get us into this mess, it sure in the heck won't get us out of it.
Good blog! We are definitely getting hit with every scam out there.
Elizabeth: I hate the scammers floating out there among us. I know there are new agents in my office that could easily get sucked in by this one. Good expose on this Program 3648. Were you an investigative journalist in another life? :)
Hi Robin: Battling spam is a major headache for me, but I have so many filters set up that I can't even remember what or where they are anymore. The worst part is some of the short sale approval letters I receive from the banks have so many numbers and symbols in the subject line that they sometimes go into my spam filter.
Hi Heather: I imagine a lot of agents have signed up. Although they did say that the fees were reduced, slashed really, from previous pricing. Which makes me wonder if it's a discount-to-retail strategy or if Program 3648 is hurting for business.
Hi Sandy: Well, an agent who wants to do short sales can take a NAR-approved course and learn how to do their own negotiation. Finding short sale leads is not a problem in this business.
Hi Chris Ann: The motto from the now defunct Chicago City News Bureau, according to my husband, is "If your mother says she loves you, check it out."
Elizabeth,
I got this email too and thought it be worth a look. Then I googled it and the comments were less than stellar. Avoid them like the plague was the general consensus.
Featured @ Club Chaos
I had to turn off my best spam filter because too much real emails were ending up there. So I just delete delete delete about 80 or so a day. Pain in butt, but a must do. Actually got one today via my web site email form. They found my website and then sent me an email telling me they could make my website easy to find. WHAT?
Great Blog! Thanks for the heads up about this scam. Take Care!
Thanks Elizabeth, I havn't seen this one yet, thanks for the heads up.
Looks like someone getting lists you can get yourself and then telling you how to call the prospects for a fee. Great deal for them.
I haven't seen this yet, but we do have some short sales here where they tell us that the buyer has to pay 1% for the negotiator. People don't like that, and I don't see how it serves the seller client.
Nothing will get me to pay in advance for this stuff. The scams are everywhere and you can get better "education" from your local association or fellow agents.
Hi Elizabeth... I received the e-mails too. I tend to be suspicious by nature, but the "government looking" logo was what really set off my alarms. After Googling them, I couldn't hit the delete button quickly enough.
Hi Robert: You hit the nail on the head. Did you know there are also lead-generating companies that sell expired listings back to listing agents? That's nuts.
Hey Phil: Do you know of any buyers who have paid that fee? It sounds crazy to me. Why would a buyer do it -- especially if that buyer could pick up the same model as a short sale just down the street, where the listing agent actually performs the listing agent's job by taking care of the negotiation on the listing side.
Hi Steve: I wonder how many people are sucked in by that logo? I wouldn't want to be the owners of Program 3648 in court when the judge asks about it. Sooner or later, I imagine the government entity that owns the image likeness mimicked by Program 3648 will file a cease and desist.
Elizabeth - That is a new twist on crazy. I haven't gotten one of those emails yet, but I gets lots of others!
I just sat throgh a webinar on this program. I wish I had seen your blog posts first. That's an hour of my life wasted.
Thanks for your post. I just love being able to search any real estate topic on Active Rain and get good information.
I am listening to their webinar as I type this response. This one is titled "What would Google Do?" (using Google Chrome's Logo and no trademark signs anywhere so you know it also is not sanctioned by GOOGLE!
I will keep listening to hear their pitch and their call to action, but know in advance thanks to blogs like this that keep me from signing up!
Just heard an amazing new concept on their video "Fast is better than slow". LOL
The sad thing is that many agents will fall for this and send them money.
I don't even waste my time checking people like this out. I delete any of their emails