The "real" issue no one talks much about in MFS...

After all of this year’s inspiring posts, blogs, conference calls, chat room chats, call to actions, lounge discussions at trade conferences and a general calling for change of the MFS industry in both public and secret and even closed “groups” on social media and after a heartfelt self-check of what this 23 year Veteran has observed and witnessed, and actions I've taken and results I've experienced, within the “property field services” industry, and for a long while, on-site provider for the "Mortgage Field Service" trade in 6 states, I humbly submit the following for consideration: 

RE:  Who is the REAL problem responsible for such turmoil in the “Mortgage Field Services”, (MFS) trade?  Really? It’s may not be who you think!

In early 1992, my now long-time retired father-in-law had me scotch tape my first set of "before and after" Polaroid photos to a clean sheet of 8.5" x 11" printing paper, and UPS overnight to Ohio, an invoice for cleaning hazardous feces from a commode in a foreclosing home (the term back then was called "DEFAULT MORTGAGE FIELD SERVICES").  We got $200.00 for that one service, PLUS the winterization fee of $225.00. Yes, it was super profitable for all us "on-site providers" who knew how to run a business and were of moral character and had a strong work ethic in the actual field, and yes, I am including our clients way back then like Mr. Paul Ripner, the Mid West Wizard of Oz, the Field Service Godfather Mr. Ward. (my missed Friend and business mentor, John Wards Father).  The original “REO/Commercial Default” believer, Alan Bunker, who I learned a ton from over the years. Of course, Mr. Don Insul, the Councilor, and even the “then” rookie on the Ohio block, Mr. Robert Klein, fresh from the fish business, who I personally remember my Father-in-Law updating California jobs too personally when he’d call us about on those early Sunday mornings.  Life was pretty good back then 20+ years ago, even with us doing a large and geographically challenging south western three states for these guys.  Good Guys helping Good Guys....   FAST FORWARD TO 12-31-2015...   Frankly, it's my humble opinion that the once prestigious "DEFAULT MORTGAGE FIELD SERVICES" is now a fast and steady sinking ship with the current breed of leadership/management at the top tier, a tier frankly occupied by more pirates (even at the evolved "Regional/Order Mill" level) than in the infamous Disneyland Ride! Except these ones move, breath and yes, take money right out of the on-site providers wallets to line their pockets and profits.  And the remaining good guys within those ranks?  Well they are as hard to find as a profit margin while working for the new breed of “Nationals” companies like the double XX in Florida!  Yes, it’s no secret that since 2007, I've had a very special feeling for this particular family, who fired me for taking a couple of weeks off as my 9 week premature Son Gabriel was born while on a family weekend trip out of state.  He lied in a Long Beach NICU  fighting for his life in an incubator for a couple months and like any good parent & husband, I never left his side or that of his Mother and as a result, not only did we lose all our XX work, which I could have swallowed on its own, BUT after months of chasing it, we got screwed on our final $15,000.00 owed that my family of 5 needed more than ever.  Finally, we were told by the accounting department; "Well, you shouldn't have taken a break". My final taste of the mindset of slave owner “nationals”, still bitter to my pallet?  But that's another story….  but it's also my CORE motivation to now offer assistance to many hard working, deserving contractors who share this same type story with their current "clients" and why I decided to share this update.

Sorry.. ok, I jumped ahead there for a moment, but back to “POSITIVE” thoughts and constructive input as intended! Speaking of GOOD GUYS, here is a perfect segway to what was next for some of us back then, 15 or so years ago, “REO”! 

In the fall of 1999, at the midway point of the HUD specs demon clearly showing its ugly head in the DEFAULT MORTGAGE FIELD SERVICES trade as well as its dizzy process of confusion and what's lead to the development of the current breed of National leadership, one good man comes to mind!  I heard from this man in the fall of 1999 and he told us "first generation contractors" of a "fairy tale" opportunity he called "REO Market-Ready Work".  Most of these guys he spoke too either didn't believe him or were incapable of making the needed transition he deemed necessary to become an effective vendor. Why?  Because they were firmly in bed and “tolerant” with their national clients back then despite the growing difficulties they were also complaining about.  But as I had heard, seen and experienced by then, I knew that "DEFAULT" MFS was in fact on the horizon of becoming an excellent way to get screwed! But the "REO" opportunity this sole individual proposed was the obvious solution for me and my team. So we immediately made the transition, and began our jumping ship and got on board with his company.  Why didn't most either make the change or make the change successfully? Pay attention, this is critical; Because back then and even more so today, there was a HUGE difference and an inherent natural conflict in the mindsets of "property preservation services" that "DEFAULT" MFS providers had infested themselves with and the new “REO services” he was focused on. The PP included the CHEAPEST, FASTEST, and as a result the SLOPPIEST servicing philosophy that they collectively created over the evolution of the MFS trade and that HUD whole heartily embraced, endorsed and capitalized on.  Nationals then and now deliver/delivered that lousy product.  Then, in stark contrast, was the "Market Ready Services" (aka REO) service mindset that this man had spoken of. And even though the work seemed, SEEMED, limited, it also made so much more sense. And unlike the before mentioned, it was extremely profitable! Clients allowed ample time to provide better quality results and even came with a partnership feel and approach that decreased the headaches and was just way less BS or politics.  We LOVED it and to this day I thank Mr. Alan Bunker for being RIGHT ON THE MONEY and including me in that initial invitation to work for his company.  In the fall of 2000, a year later, I distinctly remember the other national leadership poking fun of Mr. Bunkers ideas at my firs of 7 N.A.M.F.S. Conference held at the Merv Griffin Resort in Palm Springs where I first joined as a rookie member and I wondered why such a great opportunity was a joke to them. (They also scoffed at the data management pioneers of the time, East Point Systems, who are now a self defined data management system for on-site providers like me and more.  Now who is laughing as these same organizations?  The same scoffers now jump, cheat, stab, manipulate, rob, steal and lie to get their hands on as much "REO" business as possible.  Yes my friends,  they pillaged the DEFAULT MFS opportunity,  and now have their mafia mentality or corporate greed claws deeply in the REO opportunity to the point that I and other industry trend followers once again and since 2009,  have sought yet another transition to stay a step ahead of these beak wetters. A side note, shame on those complainers that don't take heed to exit ramps or the solutions others attempt to create. 

So, in the current analysis, December 31, 2015, it's my personal opinion (as well as the opinion of a handful of the visionaries I know) that there is actually NO salvaging the "DEFAULT MORTGAGE FIELD SERVICES" or MFS segment of our industry! Many more educated, talented, proactive,  loud, aggressive, outspoken and yes, downright foul-mouthed, vindictive and mean individuals have tried, and miserably failed like candles of hope that ran out of wax. AND the reality is that there is no one out there currently strong enough, individually or collectively, with enough personal incentive, backing, funding, influence, legal stature, respectability, tenure or support to change this reality we call MFS. (insert your new acronym fillers here)  All we can do is what was done in ancient Babylon, mourn her loss and watch the crows now pick the bones of a once and short lived Empire. So let's allow the crows-of-contractors (craigslist vendors) pick those bones, as there is always going to be endless supplies of said crows and for the foreseeable future, there is going to be rotting bones to be picked.  In fact, sadly, there is likely NO changing the course of the dismal future of the once profitable and rewarding "REO" segment of this property services industry now that it's more and more slipping into the hands of these same contractor predators and their demon hoard of Regional slave drivers (minus of course the couple of honorable men still hidden in all that darkness, there are a handful, but a dying breed). And for those of us who still have some direct contact/relationships with great REO asset manager accounts, and direct work from clients like Freddie or Fannie or better yet, the skilled managing Real Estate agencies trusted to make ready these REO assets, cherish these relationships as they may not exist in the next couple years. Why?  Because it's just a matter of time before the "used car salesmen" employed by the wealthy national entities (who choke out such golden opportunities as a result of their landing said clients) find them and sell these precious few team player clients on their ability to "simplify", "consolidate", "lower costs", "expedite" the hard work needed for REO's to be sold, and yes all off the backs of under paid, over worked, under appreciated and simply disrespected "on-site providers" like those who will read this update and “get it”, and consider “getting out”.  So until that day comes, and it will, enjoy the harvest, yes until the predators and their "Craigslist Crows" come pick these to bones too. So the bad news is,  we can't change the MFS industry trends or its downward spiral, DEFAULT MFS and now REO, but the GREAT news is, you can change yourselves! Change your client portfolios, your client requirements, your income sources. Like those that changed from "Property Preservation" to "REO" 15 years ago and have thrived for many years, you can still change from a "MFS" provider to..... .. well, sky is the limit my talented entrepreneur Brothers and Sisters!  I know “property field service firms” that don’t even know what the acronym MFS even stands for, they think a “charge back” is still something Visa offers when you didn’t swipe your card for a charge on your bill!  You just have to stop “tolerating” and then moaning and groaning about what YOU permit. AND, you have to plan your exit, NOW!  How?  

That's Chapter II and it's being documented, in live time, NOW, by folks who enjoy their clients, love property field services and who offer helpful hints in their attitudes and positive mindsets as they share their great experiences on these same sites you see the venom, poison, horror stories, griping and moaning; "Methodically Exiting MFS- What is next for the Good Guys?   Shhh, Don't Tell the Crows", because of THEM, this travesty exists.  Yes, it’s not the predator nationals that continue this rape of the good contractor networks, it’s the “crows” that give them their power to then abuse and take advantage of the worker bees, the “BOTG” army that deserves so much better. With the same vigor that some try to expose the national organized crime syndicate, so should these hacks of contractors, these craigslist crows too should be exposed every chance WE get. When they go down, the “nationals” will fail to exist. The moral of the story….   Don’t allow yourself to become a CROW, because you’re afraid to shake things up and FIRE a bad client so you have time, incentive and desire to find BETTER clients! Partnership clients, the kind you can reason with and who appreciate your role in their success!  Now is a great time to make that decision to make the change and stop being on the problem side by “tolerating” things, and start “changing” things, after all, it’s YOUR business and you’re not a tree! Guess what, as coincidence would have it, TOMORROW is a NEW YEAR!

Ohhh... as for my personal, humble pledge:  I personally and solemnly pledge to assist in mapping these exit strategies and sharing them with the right guys, the "good guys", GLADLY!  Because I am well on my third and final exit ramp already- retirement in the next 3 years!

My $ .02 & not typo proofed,

Robb Sanchez,
"Property Field Services Professional"
&
Owner/Two Time Re-Inventor of:
SW Concierge Realty Field Services
(Formally SW R.E.O. Field Services (2000 - 2014))
(Formally SW Default Mortgage Field Services (1992 - 1999))

NM: 505-730-4178     Direct (On Mon- Sun  9-6pm MST (off Saturdays, so catch me on FB)