Making calls you don’t want to make: Calling your seller because of a Notice of Default list

By
Real Estate Agent with Keller Williams Realty

About a year ago, I had listed a home for sale in Beaverton, Oregon and thought it was going to be an easy sell. In the taking of the listing I had asked how much they owed, what their interest rate was and when they bought the home. (You know all the traditional questions)

Short sales in Oregon (Behind on your payment)


But, it seems the one question I forgot to ask was… Are you current on your payments? This one was a very important question because it seems they were not. I do have to admit that this was a mistake on my part because when I heard how much they owed and how much equity they had, I thought it was going to be an easy sell even if they were behind on payments. (BOY WAS I WRONG)

Two weeks later I received my Beaverton area real estate Notice of Default list from my local title company just like I do every Friday. That is when I noticed the address on the list as one of my listings. I immediately called the seller and asked them how they were doing and then asked them if they were presently making their payments on time.

Their answer actually rocked my world a little! They said “NO, we have equity and we need the money for a down payment on something else in another state that we are buying” I then said “That is great there is one little problem with your theory and I’m hoping we aren’t too late!”

The problem was that what they thought they would get by not paying payments was more money in their pocket at close, but the exact opposite was true, they were actually going to get less because of interest and penalties from their bank. Then to top it off, their credit was going to be affected enough that they may not be able to even get the home in this other state.

Don't lose your savings when selling your home

Lucky for them, they were actually already buying this on contract, so there was no bank on the other end to deny them the loan at the last minute, but the catching up on the payments almost still cost them the new home because they ate up their savings to do it. We did close about 2 months later after getting a great offer and they ended up selling their RV to make up the difference they lost in penalties to pay the down payment on their new home.

So, if you are thinking of selling your home in the Beaverton area, please consult your real estate agent, lawyer and CPA before making any decisions on making or not making payments, what you think you are doing may not get the desired result and could cost you thousands in the end.



Todd Clark and the Friendly Home Team
Capstone Real Estate
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)622-8739

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Todd Clark is a licensed Realtor who specializing in Washington County, Oregon and also works both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard.
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Posted by


Todd Clark (broker w/ Ken's Home Team)
Keller Williams Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)746-9573

 

 

 

 Follow Todd Clark on FacebookVisit my websiteFollow me on Twitter



 I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.

 

What if there was a way you could search the  MLS for FREE just like Realtors

Now you can access the MLS using similar tools as Realtors. You are in control of what you want to search for, and you can search the MLS at your leisure. The information you submit in the form below can also be used to put you on an automated system where you'll be emailed all homes that meet your search criteria. You'll get internet access to a website that includes pictures, prices, and addresses to real estate that's listed in the MLS!

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Tammie White 09/14/2010 12:51 AM
  2. Tammie White 09/14/2010 12:51 AM
Topic:
Home Selling
Location:
Oregon Washington County Beaverton
Groups:
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America's Best Agents
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Dedicated Bloggers
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Tags:
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notice of default
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home
house
todd clark
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Show All Comments
Rainmaker
558,659
Chris Olsen
Olsen Ziegler Realty - Cleveland, OH
Broker Owner Cleveland Ohio Real Estate

Hi Todd -- It's like a John Grisham novel that slowly takes curve after curve, who would have thought?

September 13, 2010 11:17 PM #27
Rainmaker
230,029
Ken Barker Realtor® GRI, E-Pro Certified
Dilbect Real Estate - Burbank, CA

Todd - This is absolute perfect timing. This is not something I normally do but I am going to team up with an agent and door knock some of the client TIPS I will be getting on some of these distressed owners. It won't be fun but if not me, someone else. I want to be able to help people before the desperation. You have some wonderful tips in this post.

Thanks for the timing.

September 13, 2010 11:17 PM #28
Rainmaker
1,049,423
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

An excellent post.  I think it is difficult for sellers to access the correct information... This is a reminder for all of us to remember to ask ALL of the questions.  I also do so when I am representing a Buyer and we add something in the addendum where the Seller warrants they are not behind, have not gotten a notice of default and will inform the buyer if anything changes.

September 13, 2010 11:57 PM #29
Ambassador
1,193,205
Tammie White
Benchmark Realty, LLC (615) 495-0752 or www.TWRealtyGroup.net - Franklin, TN
TW Realty Group, Franklin TN, South of Nashville

This is a little scary.  It is so important for sellers to tell their real estate agent everything no matter how embarrassing.

September 14, 2010 12:24 AM #30
Rainer
205,905
Eugene Adan
Adan Properties, Carlsbad, CA (760) 720-9710 - Carlsbad, CA
Carlsbad Real Estate

Todd,

Why don't they just volunteer that they haven't made their payments?  I'm going to have to remember to ask the question and not assume that they are current going forward.

September 14, 2010 12:25 AM #31
Rainmaker
573,698
Phil Leng
Keller Williams Eastside Market Center - Kirkland, WA
Phil Leng Team - Residential Real Estate Experts &

Good post Todd,

Oh - I guess I am not the only one to notice!!

Phil

September 14, 2010 12:44 AM #32
Rainmaker
247,983
Paula Swayne
Dunnigan, Realtors, Sacramento (916) 425-9715 - Sacramento, CA
Realtor-Land Park, East Sac & Curtis Park -Dunniga

Hi Todd!
Congrats on the feature!  I guess we don't realize how naive some of our clients are...not a day goes by that there isn't a new tact to get what they want!
Paula

September 14, 2010 01:41 AM #33
Rainmaker
1,069,277
Ginny Gorman
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Todd...at least they were honest when you asked them...i had a client who didn't tell me they were behind & that's when you realize there's alot of work to be done...good feature post..

September 14, 2010 07:22 AM #34
Anonymous
Anonymous
Anonymous

Todd - Amazing what folks will do based on no or poor advice!

September 14, 2010 07:33 AM #35
Rainmaker
909,753
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

Yikes that is not the kind of lesson you want to learn when buying and selling Real Estate!

September 14, 2010 08:19 AM #36
Ambassador
895,326
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Realtor - Ann Arbor Real Estate

We now have that question written in our local forms?

Then we know...good job getting this closed...too bad they didn't contact your right away.

September 14, 2010 08:20 AM #37
Rainer
39,171
Keith & Evie Sellers
Sellers Real Estate PLLC, REALTOR® (Keith) - Zeeland, MI
Co-Owners, Serving: Holland, Zeeland, Grand Rapids

Good thing that had a quick-draw agent in tow!  Good thinkin' on your feet, and even though they lost a bit, I hope they were happy that you were doing your job in finding them out and setting them straight!

September 14, 2010 09:03 AM #38
Rainmaker
1,227,675
Al & Peggy Cunningham Brokers, Brampton Ontario Homes For Sale 905-450-5500
RE/MAX Realty Services Inc. - Brampton, ON

You are right Todd this is a hard call to make and a tough question to ask, but it was a good thing that you swallowed hard and did it anyway. Glad things turned out ok.

September 14, 2010 09:34 AM #39
Rainmaker
312,553
Lori Churchill Cofer
Beasley Realty - Pullman, WA
Realtor - 509-330-0086 - Pullman, WA

Todd,

Thanks for the reminder Todd....this is an all important question we do need to be asking....

September 14, 2010 10:08 AM #40
Rainmaker
259,343
Bill Travis
Captain Bill Realty, LLC - Gilbert, AZ
Broker/Owner

Have to add that to my list of questions to ask all sellers

September 14, 2010 10:38 AM #41
Rainer
35,824
Virginia OnullConnor
Realtor®, Photographer, Artist - Temecula, CA
Realtor - Temecula, Anza, SoCal

Amazing. It astounds me - the level of ignorance so many people have, yet they may still make major financial decisions and commitments like buying property, and as someone pointed out earlier, voting. Scary. In the dog show world my best friend and I have a code word for them. TSTL. (Too Stupid To Live) If they had to truly fend for themselves in the wild, they'd be lunch for the first predator to walk by them. Sad and scary.

September 14, 2010 11:57 AM #42
Rainmaker
181,636
Sherry Chastain
Hendersonville, Nashville, Old Hickory, Lebanon Tennessee - Hendersonville, TN
Realtor, Selling Homes, Lake Properties,Luxury Homes,Short Sales

Duh!

Oh by the way your signature ROCKS!

September 14, 2010 11:59 AM #43
Ambassador
1,737,559
Barbara-Jo Roberts Berberi & Corinna Birgit Cromartie
Charles Rutenberg Realty - Palm Harbor, FL
Palm Harbor & Dunedin FL Residential Real Estate

Wow - talk about getting a big surprise! Sometimes you wonder if people take the time to think things through before acting.

September 14, 2010 01:27 PM #44
Rainmaker
347,322
Keisha Hosea- KASIHomes.com
KASI Homes - Chino Hills, CA
Real Estate Solutions For Real People

Great advice, Todd. So many sellers are misinformed but we have to know the full story.

September 15, 2010 03:07 PM #45
Rainmaker
1,392,599
Rebecca Gaujot, Realtor®
Coldwell Banker Stuart & Watts Real Estate - Lewisburg, WV
Lewisburg WV Real Estate, Greenbrier County

Todd, sometimes it is like pulling teeth to get the information needed from sellers.

September 16, 2010 08:57 AM #46
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Todd Clark

Broker - Beaverton, Oregon Real Estate Expert - (503) 524-9494
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