You’re Either Ahead of the Curve or You’re Behind it

By
Education & Training with Ludwig & Associates

 

Motivational Power Quote

 

You’re Either Ahead of the Curve or You’re Behind it  

“You can’t just ask customers what they want

and then try to give it to them.

By the time you get it built, they’ll want something new.”

Steve Jobs 1955 – 2011, the co-founder of Apple        

 

As I see it . . . . . . .

 

You’re either ahead of the curve or you’re behind it

 

As we can attest to; customer’s demands are changing and market conditions are evolving.

 

As business professionals we have to understand the paradigm shifts in the market to stay ahead of the curve and remain relevant.

 

One of the largest area’s in the shifting market that continues to create challenges are the distressed sales.

 

There are more and more problems with title reports that are turning up after the closing. One of the issues is in the amount of the exceptions that are on the title insurance report as a result of the break in ownerships and the chain of title.

 

In a recent case several months after the closing of a distressed property a credit card lien for $20,000 showed up on the home when the new homeowners was in the process to refinance the home. Nobody wanted to take reasonability for resolving the lien and the new buyer had to pay an attorney to clear up the issue.

 

There is also major issue that is becoming a real problem for sellers of short sale properties.

 

If the seller sells their primary resident where the sales price doesn’t cover the mortgage it creates a deficiency at closing. Here’s the problem though December 31st of 2012 the lender will issue a 1099 to the seller. Through December 31st the sellers will not have to pay taxes on the amount of the deficiency if the short sale is their primary residence. Here’s the catch the lender has 5 years to file a deficiency judgment against the former homeowners.

 

The lenders have been selling the rights to lien to the properties much like they have been in selling the bad credit card debt to third party collection agencies.

 

Here’s the big issue, if a lien is filed against the former homeowner that will prevent the former homeowner from purchasing a new home until they paid off the lien. 

 

If grant money was used as part on the purchase price to buy a home being sold through a short sale or becomes a foreclosure. The sale doesn’t release the buyers from the obligation to pay the grant money back. 

 

To stay ahead of the curve on the sale of distress properties both the buyers and sellers need to have real estate attorney to represent them at the closing and for their future protection.  

 

Either you’re ahead of the curve or behind it. Distress sales can create a long tail and potential long term problems for everyone involved in the transaction it makes common sense for an attorney protect interests of our customers and our license.

 

©2012 Lou Ludwig, Sales and Management Consultant, Success Coach, Speaker, Trainer and Author

 

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Topic:
Real Estate Sales and Marketing
Groups:
Real Estate Rookie
Dedicated Bloggers
POSITIVE ATTITUDE for the Weary Soul
Realtors®
Active Rain Newbies
Tags:
short sales
selfhelp
motivation
sales success tips
deficiency judgement
distressed sales
remain relevant
steve jobs

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Rainer
199,799
Cheryl Thomson, REALTOR, Retired (U.S. Army)
Real Estate in Northern Virginia
Buyers Advantage Real Estate Corp. (c: 703.216.5635)

Hi Lou.  Yes, that 5 yrs window is something we didn't expect...

June 25, 2012 11:30 AM
Rainmaker
599,425
Sandy Shores Broker, Melbourne FL
Brevard County FL Real Estate
M & M Realty of Brevard Inc.

Happy Monday Lou!  Hope you are staying dry.  In the ever changing real estate market, consumer demands are adjusting as they are out in the market looking at what properties are available. And we must adjust with those demands. Great quote!

 

June 25, 2012 11:48 AM
Rainmaker
1,141,161
Wanda Kubat-Nerdin
Your Southern Utah Residential Real Estate Agent
Prado & Kramer Real Estate, St. George, UT 435.632.9374

Lou, We must always adapt and adjust to continue moving forward, especially as quickly as some conditions change! Must be out in front!

June 25, 2012 12:37 PM
Rainer
185,098
Irene Durocher
homesweethome4u@att.net
Coldwell Banker BUYERS AGENT

Hi Lou, great advice on some of the pitfalls in buying distressed properties.

The deficiency judgment can hurt previous owners. They are not free and clear, like they thought.

June 25, 2012 02:54 PM
Rainmaker
930,480
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Personal Service, always.
Waters Realty of Brevard, LLC

Better to be out front than playing catch up, for sure.  Short sales without a deficiency waiver is not the best option.  Sometimes having an attorney involved with the sale process will save a lot of money later.

June 26, 2012 05:23 AM
Anonymous
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Rainmaker
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Lou Ludwig

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