Monday, October 13, 2008
Dot your I's and Cross your T's in this market
The sellers new they were bringing in money but they didn't know how much. If they had the extra money laying around they surely wouldn't be 90 days late on their mortgage. The next thought by the sellers was "who else can help chip in"? Obviously their first thought was their agents commissions. The sellers realtor decided that he would chip in his commissions to cover as much of the expenses as he could. He actually was planning on giving away the farm and making nothing on the deal. While the agents were battling this I realized I had a bigger problem of my own. I had a loan with a locked interest rate where the lock was going to expire before the new payoff would even arrive. We could not close until the new payoff arrived so I had some major obstacles that I had to overcome. Getting the seller to pay for the lock extension was obviously worthless because they didn't have money to pay their mortgage so how could they pay for the buyers lock extension. I was able to negotiate with my lender and get an extension with no cost to the buyer or seller (because I paid for it). I was more worried about whether the deal wouldn't even close at all because of the sellers predicament.
Those that know me know that I have some experience in the REO market. I told the sellers and their agent that I would call the current lender and see if I would be able to negotiate the prepayment penalty and/or some of the late penalties and interest because I didn't want to see the sellers agent and possibly the buyers agents paychecks diminish. I was told that that idea was a lost cause by the title company because they already tried that. I decided to call the lender regardless and spoke to their loss mitigation department because if this sell failed that's where this home was headed. I was able after several tries to track down someone that actually cared about this home not going into foreclosure status. I explained the situation and they actually worked with the current owner to remove enough fees and interest to make it so the current home owners were not short to close. We ended up closing the loan and the buyer, seller and both real estate agents were extremely happy. I was very happy because my client was ecstatic about owning her first home.
I chose to write about this particular incident because it could have been a deal breaker. It also could have been prevented if the seller and their agent had taken certain precautionary measures before hand. I encourage every listing agent to order a payoffs on their sellers homes just to make sure the numbers are going to work. You may not know if they are behind on their mortgage or have a prepayment penalty and these are not things that you want to find out at the closing table. If you have similar stories or other stories you would like to share, please do so. I hope this information was helpful and that it could possibly save you a deal in the future.
Tuesday, October 7, 2008
Motivation in this Tough Market
I am going to post a thread that I posted in my personal blog. I want this blog to also be a marketing tool that others can turn to for ideas or to ask advice on what ideas are working and aren't working.
I received a call yesterday from a colleague that asked if I had the “golden key” to this market because his brokerages loan applications had basically died. Unfortunately there are no golden keys, as we all know the market is what it is and we have to pound away at it to make it work for us. He mentioned that it has been difficult to get up and go to work in the mornings because the market has worn him down. I told him I would personally call him every morning to make sure he was in the office and closing deals to feed his family. Accountability is bigger than ever right now because many real estate professionals are in the same situation and letting the market get the best of them. Find someone to motivate you and hold you accountable for what you have to get done today. If you don’t have someone that will call you, call me. I will be more than happy to help.
Enough about that, we are implementing some new marketing to help create business for real estate agents call capture #’s. We have a new program that will allow the seller to pay for the buyers first 6 months house payments. By adding our rider sign to your listings, agents have been able to increase their call capture calls by over 30%. We have not done this yet in
I received some great advice this week from a loan officer in
I have never blogged or been a fan of blogs but I needed to get out of the record business I guess. I hope you enjoy this blog and find the information useful. Please join andbe a part of it.