Another month and you don't have any money to pay your house payment. What are you to do? Do you want to sell your house? Are you looking to stay in your house. What ever your desire please don't just sit there and do nothing, call someone to help you explore the solutions that are just right around the corner. This happens to you the home owner when you have lost your job, your wages have been cut, or you recently have gone through a divorce. When there is a will there is a way.
What can you do if you owe more than what your house is worth? At this time you can try and sell your house using a Realtor. The Realtor will market and sell your house for you and the bank pays the commission. A short sale is when you sell your house to someone else for less than what is owed. Is this really feasible? Can you sell your house for less than you owe and will it actually benefit your family?
Everyone's situation is different but it can be done by talking to an attorney and or cpa will help you make some difficult decisions that may effect your family for years to come so it's important to explore your rights. Just taking the time toanswer the question do I want to stay or do I want to go? An attorney can look at your case and objectively give you an opinon to help you make those tough decisions.
If your attorney is asking for a large retainer, ask questions of why they want this retainer. An attorney is an officer of the court. Don't ever be afraid of asking them questions. I have known A lot of attorneys that will help you and not require a large retainer. If they do ask for a large retainer ask them if they can guarantee their results?
Ask them what type of experience they have had in the past when dealing with your type of case. Can you both work together for a positive solution? Having clear questions and clear understanding of expectations is extremely important. Only you or your attorney can define this role.
If you can't make the mortgage payment then it makes sense to let your attorney know that you can't afford a large retainer. Ask the attorney how can they help you when you just don't have any money? Explore some govermental benefits by going to this website: http://www.benefits.gov/ Do you need to expore bankruptcy? What kind of an attorney do you want to talk to? Ask for an attorney who is experienced in Real Estate Law And Bankruptcy Law. Ask questions like, If I do a short sale What will happen when the bank sends me a1099? Check out the IRS page regarding mortgage forgivenss act; http://www.irs.gov/individuals/article/0,,id=179414,00.html
You can call Oregon State Bar and they will give you a referral for an attorney, here is the website. http;//www.osb.org/
A Realtor isn't qualified to give you any legal advise and this must come from an attorney or a CPA these are people who are allowed to give you legal and financial advice. Realtors are here to help you sell your house not give you legal or financial advice.
Please stay away from anyone who asks you for money and they aren't an attorney or a cpa. There are lot of scammers out here that will promise you the moon and produce nothing. If someone calls you and wants you to pay them for help with a loan modification hang up the phone. Help is FREE. Go to this web site: http://makinghomeaffordable.gov/
Remember life changes all the time. You are not the only person going through this financial meltdown. As you take baby steps life gets better everyday. Don't ever give up. When I was 12 years old I was riding my horse and my horse bucked me off. I got up dusted myself off and began walking down the road with my horse trailing behind me. My step-dad drove up in his truck and asked me what I was doing. I bravely told him I'm walking for a while because I got bucked off. My step-dad said no you aren't walking. You are going to get up on that horse again and ride like the wind or go home. I had been looking forward to this trail ride for a long time so even though I was scared to death of getting bucked off I got back on my horse and rode like a real cow girl. You have hard times oh well don't focus on the hardship but focus on the reality of life can make you tougher. Don't be a victim and fall for the victim mentality. Get back up and ride life like the wind. If you need help call me so I can help you sell your house, April Moore, Broker 541-296-8880
Posted by April Moore on 12/02/2010 06:50 PM Comments (21) Pre Forclosure What to Do in the ActiveRain Channel foclosures, the dalles realestate, the dalles foreclosure real estate, shortsales, april moore real estate the dalles, home sales the dalles Edit Delete
Originally posted at: My New Outside Blog: Who Do You Call When You Can't Pay Your Mortgage?
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This post has been included in Oregon Real Estate News
21 Comments on Who Do You Call When You Can't Pay Your Mortgage?
DEC
022010
April, this is a very wonderful post. With this post, you'll actually be able to help any read person who's facing the same dilemma. Your post in itself is what Steven Graham would call the "action button"! Thank you very much for this thoughtful, and thought provoking, post!
James Harner Montgomery County PA Homes Certified Residential Specialist (Buy or Sell Residential Homes | Short Sales and Foreclosures) Delete | Report a Concern
6:55pm • #1
April: This is a great post to encourage people to take some action, seek counsel, explore thier options even in challenging times. There is help out there. Do not despair; do not give up.
Bandele Oguntomilade (Bogun Realty and Luxury Homes) Delete | Report a Concern
6:55pm • #2
The only problem is that Attorneys are really after a fee that they charge from the beginning, they usually don't guarantee the outcome, they are the vultures of this economic meltdown, and at the end, they usually offer free: short sale of the house if they could not help.
They are clogging the system with frivolous lawsuits, with MERS related threats to banks, and at the end, a great deal of the sluggishness of the recovery can be attributed to attorneys making a buck regardless what happens to the world.
Henry Pailles - houseINsandiego Realty (houseINsandiego) Delete | Report a Concern
6:59pm • #3
DEC
032010
April, Great post! Karla Casey Principal broker Casey & Associates Honolulu, Hawaii
Karla Casey, Principal Broker, Casey & Associates, Hawaii Delete | Report a Concern
10:55am • #5
The best advice is to not ignore it! Asking for help from a Real Estate Professional is a good start, but calling your lender is a good idea as well... Better to work with them before there is a big issue than stick your head in the sand.
Robert Rauf (REMN - Real Estate Mortgage Network) Delete | Report a Concern
10:55am • #6
The first call anyone should make when they can't make the house payment is the mortgage co./lender. Tell them what's going on, and they usually have a dept. that can help you out with information about available options.
If the house needs to be sold, it's better to start the short sale process as soon as possible. When the notice is running in the paper for the courthouse auction, it is usually too late.
Karen Steed Delete | Report a Concern
11:08am • #7
Great blog, extremely informative. Reiterates that we, as agents, are not qualified to give our clients the type of advice they need when facing such difficult decisions.
Rebecca Nystrom (Nystrom Realty) Delete | Report a Concern
11:43am • #8
I have found many attornies ask for money and deliver nothing.
Gene Riemenschneider East Contra Costa Home Sales 01492725 (Home Point Real Estate) Delete | Report a Concern
12:12pm • #9
Sometimes the hardest thing to do is ask for help. When you are unable to make your mortgage payment homeowners need to understand that their are options out there, but they need to face the reality and ask for help.
Simon Mills (Mills Realty) Delete | Report a Concern
12:50pm • #10
April, Great post for any homeowner who is in trouble. Great advice for troubled homeowners.
Tom Bailey (At Waves Edge Coastal Real Estate) Delete | Report a Concern
8:12pm • #11
DEC
042010
Great post to warn homeowners about people who might take their money, but not help them with their problem. Hard times produce too many crooks!
Marte Cliff (Marte Cliff Copywriting) Delete | Report a Concern
1:43am • #12
April, you hit the nail on the head and wrote this perfectly for distressed sellers. Great post!!!!
DeeDee Riley REALTOR® El Dorado Hills CA Homes for Sale (Lyon Real Estate) Delete | Report a Concern
2:24am • #13
April, action = results. What about those current, under water and wanting to stay in their homes?
Craig Snead (Quality Home Investments, LLC) Delete | Report a Concern
7:42am • #14
April, that was a nice story. I remember when I was about 16 & riding a horse in Michigan behind a friend that was an accomplished rider. (3rd time on a horse & first time bareback) I fell off because my horse was running chasing the ohter horse on a frozen gravel road. Broke my thumb, fell off 2 more times & finally road the horse home in the other direction!
Jirius Isaac (Isaac Real Estate) Delete | Report a Concern
9:49pm • #15
DEC
052010
Getting free advice is getting nothing of value and certainly not a solution especially when you are in financial distress. There are many professional financial advisers who have helped their clients and may also be licensed RE agents or brokers who can provide meaningful solutions or steer a distressed property owner toward additional assistance from other credible resources.
Knowledgeable RE agents and brokers are fearless with their advice to their clients and future clients and always advise their clients to seek legal advice on matters or issues regarding their legal circumstances and consequences.
There are many unscrupulous people who take advantage of financially distressed homeowners, all of whom begin with FREE to lure their victims into a relationship. Unfortunately, many victims don't use professionals to help them until they have become victims of fraud and deceit. So what's the value of FREE, absolutely nothing!
Kimo Jarrett (Wiki Wiki Realty) Delete | Report a Concern
3:52am • #16
Very good post April. Helps the seller know what they can do and what a REALTOR can and cannot do. Margaret C.
Margaret C. Taylor St Mary's MD Real Estate Agent (Century 21 New Millennium MD) Delete | Report a Concern
9:22pm • #17
Dear April,
Talking with a Realtor could not hurt, because they have many contacts and resources. However, the first call should be to the loan servicer to inform them of your hardship situation and to see, if they could work on the problem with you.
Dörte Engel (RE/MAX Leading Edge) Delete | Report a Concern
9:45pm • #18
Great Blog and others offer some sound advice.
Heard on the news: Federal Reserve has issued a guidance to various state courts that request financial documents submitted in foreclosure proceedings be taken as a true statement of the facts; to wit- Financial Intuitions are to be found innocent until found guilty; homeowners are to be found guilty until found innocent (home owners have to prove the documents are inaccurate; they have to subpoenathe documents as banks are not required to provide the documents). IMO this is a work around by the Fed to protect the banks & mortgage servicer from judges who have found some of the foreclosure documents to have serious legal errors; IE: unable to find original documents or determine who owns the note when sold many times. The memorandum also implied that all homeowners who seek mortgage relief had committed fraud on the banks and not vice-a-versa; this is certainly not true in all cases.
Unfortunately, most home owners when they get to this point don't have the cash to retain a lawyer to fight for their rights. A time may come (hope I'm wrong) that land & home ownership will be the way it was during the 1950's; locally we call thse homes Mill houses as documents show they were owned by the local mills.
George Wilson (Lincolnton, NC) Delete | Report a Concern
11:55pm • #19
DEC
062010
Good Post! This should really be helpful to a lot of homeowners who are in distress!
Paula Burt (Keller Williams Keystone Realty) Delete | Report a Concern
1:09am • #20
DEC
072010
This is good advice. People really don't know where to start when they get in trouble.
Tigard Oregon Homes for Sale, Wayne B. Pruner, Realtor, GRI (Oregon First) Delete | Report a Concern
11:35pm • #21
DEC
182010 Luckily in California the DRE is cracking down on scam artists cheating people out of money by charging them up front for a service they never perform.
Dennis & Terri Neal (RE/MAX, Big Bear) Delete | Report a Concern
2:24am • #22
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Thursday, December 23, 2010
Why Sellers Can Be Reluctant To Hire A Broker
Recently sellers have told me that the reason they won't hire a broker is they owe too much on their loan, they think broker's make too much of the money from the sale of their house or they feel they can sell their home themselves.
If the owner is upside down in their mortgage then this is the time the seller really needs the real estate professional. Why does the seller want to sell his/her house? Have you recently lost your job? Have you recently been divorced? Has your wages been reduced? This is a great time to hire a broker who can sell your house and negotiate the fees with the bank. Of course you would also be required to get advice from your C.P.A and Attorney.
Who says Real Estate Broker's make too much money on the seller's home? Could it be someone who has a real estate broker who doesn't communicate? Could it be someone who just doesn't recognize the value of a professional?
I talked to this for sale by owner who said you broker's make too much money to sell my home. Why should I pay you when I can do it self? That particular for sale by owner had been trying to sell his house for 2 years. I stopped trying to get him to list and discovered that he listed his house with another real estate agency.
The house stayed on the market with that realtor for a period of 9 months. It was all good because at that time the seller wanted his house listed at an unrealistic sales price. It taught me that sometimes you have to detach from getting the listing and allow things to progress without feeling rejected. Rejection is the hardest thing to swallow. This feeling is a direct feeling of our ego. It was a lesson for me to detach and see what happens.
I watched as this house sat on the market at the really high price and it didn't sell. When the house became expired I jumped on the opportunity and sent him a letter. The letter had big bold titles like I can sell your house for the right price. He called me and asked me how could I sell his house for the right price? It opened up the dialog for discussion. When I arrived at the listing presentation, the seller had every letter that I had sent him and he even called one of my current listings to see if I did what I said I would do. Of course my current clients were very complimentary even though their house hadn't sold yet. I put phone numbers of my current clients on this letter.
At this time I had only been a real estate agent for a short time so the seller was still reluctant but I asked one of my friends to co-list this property with me. The co-lister was one of our agencys's top sellers. We made an appointment and we got the listing.
At one point I thought do I really want this listing? Thoughts of fear were hounding me on a daily basis about this listing. How could I sell this house? The other agent didn't sell this house what makes you think your good enough to sell this house? Each time a thought like this came up I simply snaped my fingers and said to myself, stop this insane thinking. I did take the listing and we took it at a higher commission than the last real estate agent. The seller had asked if we would cut our commission and we told him no! The seller said why not cut your commission your competition was willing why not you? We both turned and told him because we will sell your house! (Intention Spoken)
When we put the house back on the market the old listing agency called me on the phone and told me that I had the listing priced too high even though the price was $6,000.00 lower the last price the agency had listed the house. Again fear of doubt began to creep into my realtor being. I snapped my fingers and said out loud, STOP!
I hired a photographer who took great pictures and I made flyers. (flyers were put inside the house) I talked to everyone I could think about and told them about this great deal. I'm so grateful to the old listing real estate agency's phone call, advising me of my overpriced listing. I had a plan. My first step was the plan of an open house... Allowing my client to have the open house viewers to assist me in getting the price lowered.
My client sat with me as people came through the house and I asked them their opinion of the house. One lady yelled I wouldn't give you $250,000 for this house? I asked her why she felt that way. Remember my client is sitting in the dining room listening. The house is outdated, yes I said, The view is nice but the windows need updating, okay I said tell me more. The carpet is new but I'm not sure I like that color. The client had updated the carpet in the house. The lady thanked me and went on her merry way. Another couple came into the home and said the same thing. I sat down with my client and said what do you think about the open house opinons? My seller said "oh they don't know real value. " The open house continued and the same opinions came out of each and every visitor. It's my opinion that I was glad I had my client there at the open house to hear the open conversations of everyone who came into the house. Realtors have told me having the owner at the open house isn't a good idea. I have to disagree as in this real estate market I like the owner at the house. Of course this is my opinion.
After the open house we began to have phone calls for showings. This indicator gave me the idea that the house was priced right. A couple of weeks later the house got an offer and I was excited. It happened in the first 30 days. I listed the house in the winter market. The first offer was lower than what my client was willing to take. I negotiated with the other agent and we were able to negotiate this offer at a higher price.
My seller loved this house. It was very difficult for him and his wife to sell this house but we got it done just in the nick of time. If that house were on the market today it would have sold for a lesser price. My client's were very lucky for accepting the sale.
As broker's we marketed the house, took all the phone calls and called our client's with the results of each and every showing, and we educated our client through the sale. An example of educating our cleint. The inspection came back with many repairs. You know from experience that some inspectors examine a house with the perception of a perfect house. We all know that the inspections are designed in some ways to get the price of the house lowered. It's a good thing to have inspections but its important to be familuar with the inspectors report to help your seller get through the rough areas of a report. When you have a seller that is connected to the house they are selling and then a 181 page report comes back with every small minute detail that can cause the seller to become disillusioned with even wanting to sell the house to the buyer.
In this particular case the buyer wanted the original price reduction that we had previously negotiated back up. The seller was upset as he looked at the report. I took a deep breath and calmly said let's go through the report page by page and see what they are trying to say. I told him it's important to make the buyer feel that you are concerned if the repair has issues dealing with safty. After going through the report we were able to determine that their $10,000 price reduction really was $1,500.00 in repairs at which time we told the buyer we would get the repairs done but were going to reject the lower price.
It's more work for me as a broker. I had to line up estimates for my client and supervise the time it would be done, get all the reports back to the buyer etc. Keeping communication with the other agent and updating my client on a weekly basis. Calling the title company and making sure the preliminary title doens't have any issues that would hold up the sale of the house. This was a cash deal so I had to call the title company and make sure the funds were at the title company at least 10 days before the sale was to close. My idea is that my client needs to know that everything is okay with the sale. Keeping my client informed is my number one priority. Making sure all the dead lines in the contract sales agreement are met and my client is being advised of every step.
I'm so grateful to this client to have taught me some great negotiation skills. I earned every penny from this transaction however with that said it has made me a much better broker to have empathy for these sellers. While its said that its a buyers market we need to have compassion and understanding that the sellers are going through agony when it comes to giving to the buyers. It wasn't so long ago that the buyers had to bow to the sellers. Isn't it interesting how a few years changes things.
You see as a for sale by owner my client had tried to sell this house for $475,000. The other agent listed it $375,000 and finally the last price of their listing was $315,000 My listing started at $309,000 but evenutally sold for $289,000.00. No one will ever know if he had listed his property at a better price would he have sold it at a higher price? Can this be reasonable expectation of success? My client I'm sure had to suffer a lot of dissappointments. The motto of this is hire a professional real estate
I commend the for sale by owners who want to sell their house. Recently a for sale by owner bought a house across the street from my house they paid $235,000 $10,000 more than they could of paid if they had used the skills of a professional real estate broker. Hello? Buyers don't buy a house unless you use a broker.
A message to you the seller. Please explore hiring a professional broker who can sell your house for the right price. A broker will get paid a reasonable price for the job that they do. Please don't think a broker just puts a sign in your yard and thats the way your house is sold many brokers are very hard working people who will do a great job for you. Remember most broker's work for free until they sell your house. What is your time worth? I think if you examine the pros and cons of hiring a broker and not hiring a broker you will find that its worth the small tax deductible expense to hire a professioanl real estate broker. If your looking to expore what I can do for you please give me a call at 541-296-8880
If the owner is upside down in their mortgage then this is the time the seller really needs the real estate professional. Why does the seller want to sell his/her house? Have you recently lost your job? Have you recently been divorced? Has your wages been reduced? This is a great time to hire a broker who can sell your house and negotiate the fees with the bank. Of course you would also be required to get advice from your C.P.A and Attorney.
Who says Real Estate Broker's make too much money on the seller's home? Could it be someone who has a real estate broker who doesn't communicate? Could it be someone who just doesn't recognize the value of a professional?
I talked to this for sale by owner who said you broker's make too much money to sell my home. Why should I pay you when I can do it self? That particular for sale by owner had been trying to sell his house for 2 years. I stopped trying to get him to list and discovered that he listed his house with another real estate agency.
The house stayed on the market with that realtor for a period of 9 months. It was all good because at that time the seller wanted his house listed at an unrealistic sales price. It taught me that sometimes you have to detach from getting the listing and allow things to progress without feeling rejected. Rejection is the hardest thing to swallow. This feeling is a direct feeling of our ego. It was a lesson for me to detach and see what happens.
I watched as this house sat on the market at the really high price and it didn't sell. When the house became expired I jumped on the opportunity and sent him a letter. The letter had big bold titles like I can sell your house for the right price. He called me and asked me how could I sell his house for the right price? It opened up the dialog for discussion. When I arrived at the listing presentation, the seller had every letter that I had sent him and he even called one of my current listings to see if I did what I said I would do. Of course my current clients were very complimentary even though their house hadn't sold yet. I put phone numbers of my current clients on this letter.
At this time I had only been a real estate agent for a short time so the seller was still reluctant but I asked one of my friends to co-list this property with me. The co-lister was one of our agencys's top sellers. We made an appointment and we got the listing.
At one point I thought do I really want this listing? Thoughts of fear were hounding me on a daily basis about this listing. How could I sell this house? The other agent didn't sell this house what makes you think your good enough to sell this house? Each time a thought like this came up I simply snaped my fingers and said to myself, stop this insane thinking. I did take the listing and we took it at a higher commission than the last real estate agent. The seller had asked if we would cut our commission and we told him no! The seller said why not cut your commission your competition was willing why not you? We both turned and told him because we will sell your house! (Intention Spoken)
When we put the house back on the market the old listing agency called me on the phone and told me that I had the listing priced too high even though the price was $6,000.00 lower the last price the agency had listed the house. Again fear of doubt began to creep into my realtor being. I snapped my fingers and said out loud, STOP!
I hired a photographer who took great pictures and I made flyers. (flyers were put inside the house) I talked to everyone I could think about and told them about this great deal. I'm so grateful to the old listing real estate agency's phone call, advising me of my overpriced listing. I had a plan. My first step was the plan of an open house... Allowing my client to have the open house viewers to assist me in getting the price lowered.
My client sat with me as people came through the house and I asked them their opinion of the house. One lady yelled I wouldn't give you $250,000 for this house? I asked her why she felt that way. Remember my client is sitting in the dining room listening. The house is outdated, yes I said, The view is nice but the windows need updating, okay I said tell me more. The carpet is new but I'm not sure I like that color. The client had updated the carpet in the house. The lady thanked me and went on her merry way. Another couple came into the home and said the same thing. I sat down with my client and said what do you think about the open house opinons? My seller said "oh they don't know real value. " The open house continued and the same opinions came out of each and every visitor. It's my opinion that I was glad I had my client there at the open house to hear the open conversations of everyone who came into the house. Realtors have told me having the owner at the open house isn't a good idea. I have to disagree as in this real estate market I like the owner at the house. Of course this is my opinion.
After the open house we began to have phone calls for showings. This indicator gave me the idea that the house was priced right. A couple of weeks later the house got an offer and I was excited. It happened in the first 30 days. I listed the house in the winter market. The first offer was lower than what my client was willing to take. I negotiated with the other agent and we were able to negotiate this offer at a higher price.
My seller loved this house. It was very difficult for him and his wife to sell this house but we got it done just in the nick of time. If that house were on the market today it would have sold for a lesser price. My client's were very lucky for accepting the sale.
As broker's we marketed the house, took all the phone calls and called our client's with the results of each and every showing, and we educated our client through the sale. An example of educating our cleint. The inspection came back with many repairs. You know from experience that some inspectors examine a house with the perception of a perfect house. We all know that the inspections are designed in some ways to get the price of the house lowered. It's a good thing to have inspections but its important to be familuar with the inspectors report to help your seller get through the rough areas of a report. When you have a seller that is connected to the house they are selling and then a 181 page report comes back with every small minute detail that can cause the seller to become disillusioned with even wanting to sell the house to the buyer.
In this particular case the buyer wanted the original price reduction that we had previously negotiated back up. The seller was upset as he looked at the report. I took a deep breath and calmly said let's go through the report page by page and see what they are trying to say. I told him it's important to make the buyer feel that you are concerned if the repair has issues dealing with safty. After going through the report we were able to determine that their $10,000 price reduction really was $1,500.00 in repairs at which time we told the buyer we would get the repairs done but were going to reject the lower price.
It's more work for me as a broker. I had to line up estimates for my client and supervise the time it would be done, get all the reports back to the buyer etc. Keeping communication with the other agent and updating my client on a weekly basis. Calling the title company and making sure the preliminary title doens't have any issues that would hold up the sale of the house. This was a cash deal so I had to call the title company and make sure the funds were at the title company at least 10 days before the sale was to close. My idea is that my client needs to know that everything is okay with the sale. Keeping my client informed is my number one priority. Making sure all the dead lines in the contract sales agreement are met and my client is being advised of every step.
I'm so grateful to this client to have taught me some great negotiation skills. I earned every penny from this transaction however with that said it has made me a much better broker to have empathy for these sellers. While its said that its a buyers market we need to have compassion and understanding that the sellers are going through agony when it comes to giving to the buyers. It wasn't so long ago that the buyers had to bow to the sellers. Isn't it interesting how a few years changes things.
You see as a for sale by owner my client had tried to sell this house for $475,000. The other agent listed it $375,000 and finally the last price of their listing was $315,000 My listing started at $309,000 but evenutally sold for $289,000.00. No one will ever know if he had listed his property at a better price would he have sold it at a higher price? Can this be reasonable expectation of success? My client I'm sure had to suffer a lot of dissappointments. The motto of this is hire a professional real estate
I commend the for sale by owners who want to sell their house. Recently a for sale by owner bought a house across the street from my house they paid $235,000 $10,000 more than they could of paid if they had used the skills of a professional real estate broker. Hello? Buyers don't buy a house unless you use a broker.
A message to you the seller. Please explore hiring a professional broker who can sell your house for the right price. A broker will get paid a reasonable price for the job that they do. Please don't think a broker just puts a sign in your yard and thats the way your house is sold many brokers are very hard working people who will do a great job for you. Remember most broker's work for free until they sell your house. What is your time worth? I think if you examine the pros and cons of hiring a broker and not hiring a broker you will find that its worth the small tax deductible expense to hire a professioanl real estate broker. If your looking to expore what I can do for you please give me a call at 541-296-8880
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