Sticking Your Head In The Dirt Won't Make The Problem Go Away

By
Real Estate Agent with Tutas Towne Realty, Inc. SL3226489
http://actvra.in/D8s

Alea Reserve Davenport Short SalesA couple weeks ago I was contacted by a seller who wanted help listing their home in Aldea Reserve in Davenport as a short sale. They had not paid their mortgage since the beginning of 2010 and were afraid if they didn’t do something soon they were in danger of having the home foreclosed on and they were hoping to avoid that kind of hit against their credit.

Of course I agreed to try to help. We got a letter of authorization and I got in touch with the lender and started the short sale process. We were in the process of listing the home for sale and the lender called to inform me that the home had been scheduled for a foreclosure sale. In two weeks. They also informed me that they would not cancel the sale date unless there was an approval on the short sale. Essentially we were stuck in a rut.

Even if we could have gotten a buyer on board and submitted the whole short sale package they planned to foreclose on the home and were not willing to bend. We got a trusted real estate attorney involved in hopes that he could somehow stall the foreclosure date to give us time to process the short sale. He couldn’t help unfortunately. The owners has just waited too long to start the process and there was no way for him to stop the sale unless they went bankrupt, which they were not willing to do.

The owners hadn’t paid their mortgage in a little over two years. By the time they started looking for serious help with the problem it was too late. Sadly, their home was foreclosed upon yesterday. I feel terrible for them and I know I could have helped them with a successful short sale if they had contacted me earlier and we had time to process the short sale.

If you are in this kind of situation, sticking your head in the dirt and hoping the problem will go away just isn’t the solution. The problem isn’t going anywhere until you take steps to solve it. We can help you with your Davenport Short Sale! All you need to do is call!

Image courtesy of Lehigh Valley, PA at Flickr

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Terry McCarley 06/29/2012 11:05 AM
  2. Gene Riemenschneider 07/03/2012 09:19 AM
  3. Winston Heverly 11/24/2012 09:01 AM
Topic:
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Location:
Florida Polk County Davenport Aldea Reserve
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Tags:
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Rainmaker
689,252
Pamela Seley, REALTOR®
REALTY EXECUTIVES OTF - Temecula, CA
Seals the Deals in Temecula Valley California

Nathan, honestly, I don't have much sympathy because the public has been educated about loan mods, short sales and foreclosures for the last couple of years. If this were 2007 or 2008 I might have a different take on it. The banks are required to send the borrowers notices of their alternatives to foreclosures. It's not like these people didn't know. I'm seeing more homeowners just taking advantage of staying in their homes without paying for as long as they can. I'm sure they were approached two years ago to do a short sale and didn't want to do it then. Maybe they were thinking they could get a few more months after they received notice of a scheduled auction date. You seem like a compassionate agent, any short sale seller would be lucky to have you! 

Jun 29, 2012 12:31 AM #33
Rainmaker
340,685
John DL Arendsen
ON THE LEVEL General Contractor, Crest Homes Factory Built Housing Dealer & Developer & TAG Real Estate Sales & Inves... - Leucadia, CA
Contractor, RE Brk, Factory Built Home Dealer/Devl

This definitely a case of "Snooze ya Lose". Sorry but I just don't have a great dealy of sympathy for ignorance or homeowners just trying to milk the system by getting a free ride on paying their mortgage for as long as they can. I have found this almost pandemic in several SoCAL markets.

Jun 29, 2012 06:45 AM #34
Rainmaker
392,274
Tni LeBlanc
Mint Properties, Tni LeBlanc (805) 878-9879 - Santa Maria, CA
JD, MA, REALTOR, CalBRE # 01871795

Nathan,

As a short sale agent myself, I've had to learn that folks who wait this long really don't want a short sale.  That's the reality.  If they did, they wouldn't wait until the last possible minute.  And when they do wait until the last minute, the reality is that they may not get a short sale.

Sorry for your wasted efforts.  It was valiant of you to try.

Tni

Jun 29, 2012 06:48 AM #35
Ambassador
1,853,441
Jeff Dowler CRS
Solutions Real Estate - Carlsbad, CA
Carlsbad CA Homes for Sale (760) 840-1360

Nate

It's certainly good advice for those willing and able to face the reality of their situation. But there is no telling what the banks wll do. I know one that delayed the trustee sale 6 times over a 1 year period as they waded through multiple offers, buyers backing out, and so on. Finally they just said no more, even when the brookerage elevated their delay rquest to the office of the President.

Jeff

Jun 29, 2012 07:20 AM #36
Rainer
285,631
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Kimo's Lifestyle Solutions

With the circumstances you were given, I'm surprised you you engaged this opportunity. Some opportunities are simply not rewarding and certainly this one was in that category from the beginning. 

Jun 29, 2012 07:22 AM #37
Rainer
33,047
Peter Pike
Myron E. Siegel, P.A. - Sarasota, FL
Board Certified Real Estate Attorney in Florida

Their concern about their credit was a non-issue.  By not paying their mortgage for the last two years, their credit has taken such a large hit that a forclosure, short sale or even bankruptcy would not damage it too much further (note, too much - it wil take a hit, but once you have fallen that far, there is not too much further down you can go).  Reality is that they needed to stop the bleeding on their credit, and the way to do that was through a short sale (a long time ago!)  Once you stop the negative credit reporting, you can start re-building.

Jun 29, 2012 07:34 AM #38
Rainer
63,830
Ed Tseng
El Sobrante, CA

The bank is too kind in this case ... which bank is it?

The owner was just playing with the system, did not pay mortgage, I assume no taxes either ... only contacted you after notice of foreclosure. The owner deserves every bit penalties there are. 

Jun 29, 2012 08:02 AM #39
Rainer
67,556
Jeff Getman
Realty Executives of Ravalli County - Hamilton, MT
Realty Executives

Nathan,

In your defense from some of the "attacks" seen here. One thing that hasn't been mentioned that I've seen is "which bank was involved". Contrary to what they are claiming for PR reasons, there are still banks out there refusing to work with people. I know of 2 cases that have been trying to short sale for 2 years and the bank keeps playing games before finally refusing to cooperate. These same 2 parties have now gone to offering the bank a "deed in lieu". One of them was refused that and the other one hasn't heard back from the bank in 2 1/2 months now with repeated calls placed to the bank. What bank would refuse a deed in lieu??? The 2nd one does have an attorney working on it, but when there's no cooperation from the other side, the whole thing is going to go nowhere fast.

Jun 29, 2012 08:02 AM #40
Rainmaker
820,796
Lyn Sims
RE/MAX Suburban - Schaumburg IL Real Estate - Northwest Suburbs of Chicago - Schaumburg, IL
Schaumburg Homes

I'm glad you feel the need to help them, personally I think they are gaming the system & waited until the last minute for advice.  They might be smarter than you think.

Jun 29, 2012 08:10 AM #41
Rainer
62,577
Gloria Matthews
Principal Property Brokers - Vancouver, WA

I ran into one of these recently,    Had just received the Notice of Sale,... the clock is ticking.    I called and left messages several times,  (he had called on one of my recent listing signs in the neighborhood),  no email, so I sent a snail mail letter, with a chart of the timelines, and the benefits of going short.

When I finally reached him, he said "i've been playing this game for 2.5 years, without making payments and I've HIRED someone to "SAVE MY HOUSE".   Ooooh dear, I fear the outcome of this, but some people are just "SMARTER".    There are those who put their head in the sand, ....and others, who think they can beat the system. .....     As much as I would like to help,   sometimes you gotta just "let go" and go on.

 

 

Jun 29, 2012 08:17 AM #42
Rainer
127,125
Sylvia Jonathan
Coldwell Banker Platinum Properties - Irvine, CA
Broker Associate, SFR

Great post, Nathan. When are people in mortgage trouble going to learn that DENIAL that a problem exists is not an effective way to SOLVE the problem? Yet it happens all the time. I bet before that fatal phone call from the lender just before the sale, there were a dozen or more letters from the bank pointing in that direction. You would think that with all the help out there (government, Realtors, attorneys, lender's own loss mitigation programs) homeowners in distress would pro-actively reach out. Nathan, some people  simply cannot be helped.

Jun 29, 2012 10:09 AM #43
Rainmaker
319,015
Terry McCarley
Right Choice Realty - Cape Coral & Fort Myers, FL - Cape Coral, FL
REALTOR, SRES, CDPE - Cape Coral, FL

This is a sad case Nathan - the home owners simply waited too long to reach out for help.  Great post!

Jun 29, 2012 11:03 AM #44
Rainmaker
828,095
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

This reminds me of a time years ago when a woman came into our office to ask if we could sell her house before it went to auction.

It turned out that the sale was in 5 days.

Jun 29, 2012 12:11 PM #45
Rainmaker
542,879
Cynthia Larsen
Safe Haven Realty | 707-332-2560 | Serving all of Sonoma County, CA - Cotati, CA
Independent Broker/Owner

In California it is much harder to get away with not paying for 2 years, but try they do.

 

Jun 29, 2012 01:06 PM #46
Rainmaker
1,266,716
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

The sad thing is that so often a Short Sale improves people's lives and often puts them in a nicer home at a better price, if not right away in two years.

Jun 29, 2012 09:20 PM #47
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Jun 30, 2012 03:14 AM #48
Rainmaker
510,281
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

Wow, don't ya just love it.  People are savy enough to buy a home yet when a problem arises they just do nothing.  I really believe they deserve to lose the house.  What happens if the heat or a/c goes out?  Do they fix it or hope the good fairy will arrive in the middle of the night to take away all their problems.

Jun 30, 2012 08:59 AM #49
Rainmaker
638,192
Stephanie/Bob The Ruiz/Miller Team
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Nathan, I am amazed at how many people still wait too long or chose to just give it back without trying to short sale.

Jun 30, 2012 09:12 AM #50
Ambassador
1,881,329
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut - Middletown, CT
Your Connecticut Mortgage Expert

Nathan, people often wait to long hoping that things will just somehow change.  Unfortunately nothing will change until they do something to bring about change.

These people learned a hard lesson that hopefully they will not repeat in the future.

Jun 30, 2012 03:59 PM #51
Rainmaker
205,706
Woody Edwards
First Choice Realty, Inc - Chesterfield, VA
A Realtor® Who Answers His Phone!

Is it possible the bank started the foreclosure when they received your short sale papers???

Jun 30, 2012 10:12 PM #52
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