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Do You Know What Distressed Property Owners Need?

Couple Trouble So,

Do You Know What Distressed Property Owners Need?

We are talking pre-foreclosure, heading toward a short sale, heading toward a possible REAL foreclosure. Knocking that credit rating down 200 points possibly for 7-10 years.

Well if you said how about a bunch of money, or some other kind of quick fix, you are not looking into the hearts of people as a real estate professional.

We would all like to have magic wands to cure people's ills from however they got into this MESS. And do not deny it is a mess and a stressed filled time of people's lives. Divorces occur because of financial woes. And don't be snooty thinking your time in this arena couldn't take place at the drop of a hat, as there but for the grace of God go I. Look at the reasons people get "distressed" and even YOU Mr. or Ms. Snooty could be there.

Job loss
Business Failure
Payment increase or mortgage adjustment
Divorce or death of spouse
Illness
Relocation
Reduced income
Mortgage fraud
Predatory lending

Assisting a homeowner in these tough times we can look at these options for them:

Refinance
Sell and bring cash to closing
Lender workout
Short sale (selling for LESS than the loan balance)
Deed in lieu of foreclosure
Foreclosure
Do nothing and walk away

In the most desperate of times a homeowner can file personal bankruptcy and try to move on with life and not jump off buildings. BUT, back to the question. WHAT IS IT THE DISTRESSED PROPERTY OWNER NEEDS FROM US, the professionals in this industry? You may find the answer hard to swallow, looking at the "perceived EVIL banks and lenders."

But from all of us, they need COMPASSION.

If they are truly trying to bail their lives out, drowning in a sea of financial troubles, isn't it the very least we can do is talk to them with compassion and understanding? Yes, this is business. But John and Mary Doe are people. We are talking REAL LIVES here. I encourage you to put a photo of the family taped to the short sale file package. A REMINDER to everyone that touches this situation that REAL LIVES are involved here and are being impacted. COMPASSION goes a long way in life!!!

Posted by Gary Woltal - Assoc. Broker REALTOR® SFR Dallas Ft. Worth on 07/24/2010 12:53 PM

Comments (55)

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55 Comments on Do You Know What Distressed Property Owners Need?

JUL

2010

Thanks for your humanity Gary. Before becoming a Realtor I was a homeowner struck with cancer a the time the housing market began its collapse. I know first hand its real people in bad situations. For the record I'm now in fine health.

I've always gotten very "involved" with my clients. Most buyer clients end up in my circle of friends and some seller clients unless they are moving far far away and even sometimes then we still call and chat if they are in town they stop in and have coffee with me.

I can't imagine being in this business and not being filled with compassion for anyone a distressed ownership situation. It's a no control situation for these owners and I know how much I hate being out of control. I've cried both with and for property owners with a number of the "reasons" on your list who have lost or are in danger of loosing their homes.

Hi Gary~ These people definitely need our kindness and compassion. Any one of us could easily be in their shoes. Compassion and empathy really does go a long way!

As someone living through a very "financially pressed" period right now, I know you are SOOO right about people needing Compassion. I am fairly certain that part of going through these difficult months myself is divinely designed so that I am not so business-oriented in trying to get a job done for my clients that I forget what if feels like to be in their shoes.

Some of the people losing their homes during this financial crisis have truly been victims of circumstance. In frames of time, it doesn't take long for piles of difficult circumstances to build up to the point of putting a property owner in a "distress" situation. Often times, these distressed homeowners have been trying to stay "above water", fighting off bill collectors and trying to eke out every mortgage payment--not for months, but for YEARS--before the final reckoning comes. By that time, they NEED our compassion...

Great wisdom here Gary. I always think I get TOO involved with my clients, especially the sellers losing their homes. We need to put ourselves in their shoes. A little compassion goes a very long way

Michael: So true.

Mary: Glad your health is back. The tough times can make us stronger.

Tammy: You sound like you have compassion as a specialty. We need more Tammys out there.

Vickie: Kindness and love is the key.

Lisa: You are right with people swinging at all the demons keeping them at bay a long time often. Sometimes there just doesn't seem to be a solution that comes along, but if we approach them with compassion it will be just a tad easier on them.

Jean: The putting ourselves in their shoes is an excellent thought.

I can't imagine losing my home. It is something to worry over since there is only one income here. If only I could get my dog to bring in a back-up income it would lessen the load.

Hi Lizette: Maybe the dog can give up his Milk Bones. We can't give up our cable or satellite TV though. Seriously, LOSING the roof over your head has to be one traumatic experience for any of us with the plans to move WHEREVER next...

Gary - thanks for sharing this post. Great idea on attaching a photo to the family to the short sales package.

Gary - Compassion is always appreciated in a crisis situation. We need to remember they are dealing with loss and that is never easy.

Hi Stephen: The photo idea brings the file to life...

Hello Norma: Loss sends us into a grief process. VERY good point.

They are not at fault. Banksters love to blame the homeowner, when in reality, their mortgages (as well as millions of others) were manipulated to generate the most bang for the buck -- for the banksters and their investors. It's a shame what has happened to Americans. I have be calling this; trickle down property loss.

So true. Bringing us in to help is also their way of taking action so they can start the recovery process.

Gary - Just this week, I was with my client at a foreclosure hearing, it was not requested by my client or anyone else. I felt this is the least that I could do to stand by. We only have sixty days to get a contract and hopefully the lender will accept and work it out.

Being compassionate should be the number 1 when taking on a listing.

Great post as always. You've got such excellent writing abilities & go right to the heart of the matter. Some people have a tough time asking for help.

Gary, "ere by the grace of God, go I". I have talked to so many people at risk of losing their homes and feel their pain acutely. I cannot imagine thinking today's market is "business as usual".

Gary, We are all susceptible to life-changing events that devastate families and should remember that and be that helping hand when we can.

As the Dalai Lamai had said, "Love and compassion are necessities, not luxuries. Without them humanity cannot survive." Thanks for bringing that human touch into our everyday dealings.

Jane Pacheco

Thanks Gary and I'm sure part of it... can be credited to my parents, they raised me this way. Plus, I'm very blessed to live in a community where neighbors help neighbors.

Hi Gary. Compassion is lacking. Sometimes I read disparaging comments that cast blame on these struggling homeowners. I work with short sales on the listing and buying side. If I was a seller during good times or bad times I would not consider those who lack compassion when times are tough. It shows what and who they value.

Yes I totally agree that without the grace of the LORD there could be anyone of us and these things can happen in a New York minute. Yes I feel very sorry for all of those poor folks who are losing their homes. We need to ask ourselves how do we let these things happen in the first place? This also applies when you see that homeless guy begging at the side of the road. Unfortunataly, a significant number of those poor homeless beggars are VETS who fought for this country... Now that to me is absolute CRIME>>>> bg

Losing a home to foreclosure is the last straw for many people. If we learn to care for these people, we normally get better cooperation and great results in the end.

Compasion is such an important part of helping the distressed homeowners. So many are so stressed and don't know what to do next. They just need help and understanding.

Something we all definitely need to keep in mind. If only some of these short sale negotiators and bank had a heart. Thanks for sharing Gary. Have a great weekend sir. God bless us all. Great post.

What a wonderful post, Gary. Re-blogged!

Gary,

What a timely and true post. I just found out that a large number of people that I used to work with will be losing their longtime jobs. Compassion.... Great advice.

These types of sales are rough. I sat in on a listing appointment an associatte of mine did for a potential short sale client. A recently widowed woman. She handled it with the utmost compasion. Was hard to watch and I don't know that I could do what she does day in and day out. Never asked to go on another listing appointment with her after that.

Indeed. Sooner or later, a job will come. But, if the family has lost their home, their financial health and their dignity will take a LOT longer.

Gary ... Thanks for this post and reminder that COMPASSION is what we need to show for folks who have experienced bumps in their life road, for those who are distressed about their homes and real estate, where they have lost equity or have job loss situations. I'll be thinking and listening.

Gary, your words of wisdom are always timely. Sure, professional knowledge, skills and techniques are important and needed by any client of Real Estate agent. However, without heart and compassion it's impossible for agent to help and bring some relieve and peace. It's so easy to become cynical, almost as easy as stay human. It's a personal decision what path to chose.

Working with more and more homeowners in distress requires a lot of compassion and strength.

Wonderful post. We all need to take some time, share compassion, radiate empathy, and listen like we've never listened before. It's a difficult time, and the human touch of all these attributes is the best way to deal. Thanks so much for your reminder.

I am a boots on the ground REO broker and I pray for love and compassion toward others. I'm usually the guy that shows up with the bad news they knew was coming. I try to remember if it wasn't me it might be someone that cares less about their job and has no compassion for people having a rough moment in their lives. Occasionally I see past homeowners around town and of course they remember me and usually, not always, they will wave or smile at me even though I was part of a bad time in their lives. The Golden Rule applies.

I am appalled by the amount of distress that medical bills cause. I haven't done research on this but in my opinion medical bills are a high contributing factor to foreclosures.

Yes, compassion. I agree.

You are correct to refer to distressed property owners instead of distressed property. My partner handles the backend of short sales with the lenders, and i handle the front in. As an older person who has been through thr ups and downs of the Oklahoma Economy since the 1970's, and my fortunes with it, I listen to what is happening to people and I can truly say I have been there. It gives them comfort to know that they are not alone, and second, my life has recovered and so can theirs.

Compassion is #1 in my book ... All others pale. Turst can not be built unless your clients feel that you are truly on their side and for them!

Gary...

Sexy Saddie here. Been there, done that and relate to it in a way most people in this profession never will. Until of course, it happens to them. Life is funny like that. We can't truly know until we've been there. However, that should never stop us from having empathy and compassion.

Mushy enough for ya? :)

TLW...ROAR!

Gary,

This is a very trying and difficult time for a lot of people and you are so right we do need to stop and listen AND show compassion to those that we serve.

A very thoughtful and important post. Thank you, Gary.

Gary...compasion can go along way. We need to treat people the way we would like to be treated.

Gary, you are so right! Sometimes there is comfort knowing that others are going through similar situations, but constant compassion, for a season, will help people through the tough times!

Gary, Wonderful post. When working with your customers they can tell if you really care about them or if you just are trying to get your job done. Your customers are lucky to have you on their side. This is re-blog worthy. Thanks for sharing.

JUL

2010

Well said, Gary. I've been involved with many short sales, and I have compassion for the distressed homeowners. I have yet to come across one who said, "Yep! This worked out exactly as I planned!"

Gary,

These people that are in a distress sale position really need our attention and our compassion.

Oh Gary, this is such a "Class-Act" post full of "C"s-Yes, Compassion and Care is what all need in this situation and you are so Clearly Brilliant to bring it to our attention-thank you!!.

Good morning Gary,

Your message is one we all need to take to heart. What an insightful post..one we need to remember and practice daily! Thanks you Gary.

Look at the reasons people get "distressed" and even YOU Mr. or Ms. Snooty could be there.

There is always more than one side to a story - don't mix up compassion with being naive.

If that sound cold hearted then maybe I've experienced more in this world than I want to share in this forum.

And, Gary. I like most of what you write.

Gary--You are spot on. Compassion is much more likely to come from us than the folks at the Lender, who routinely throw up roadblocks to sensible solutions.

Gary you are so right! There are plenty of times where people even have a hard time calling a Realtor for assistance because they are so embarrassed.

Compassion does indeed go a long way. Followed by detailed questioning to learn all the present circumstances & goals. Followed by knowledgeable counseling to achieve the best outcome.

I do my best to treat my short sale clients like family. And, sometimes, it is hard to get them to make a decision. I understand that they feel somewhat unqualified to make a good decision. After all, the decisions they have made up to this point have gotten them where they are.

So, I try to make the process go as smoothly as possible. Of course, I do that for every one of my clients.

All of our clients deserve to be treated like family, regardless of their circumstance. Thanks for the very nice post. Now if only the short-sale lenders can share this "compassion"...

They need compassion. The other thing they need is for someone to explain the options to them as well as the pros and cons of each. They also need an attorney. I find that eliminating the uncertainty and giving them an idea of what to expect can help alleviate some of the stress. I think it will take a long time for the homeowner to process what happened.

Hey Gary, congrats on you feature post! All businesses need to have this, Compassion...it is a key ingredient to remaining grounded with your work and remembering why you do the profession your in..because you care about helping others become successful or achieve their dreams.

JUL

2010

Hi Gary, I'm glad I didn't miss this post today, I can't imagine not having compassion for those who are in a distressed situation. Like you said, there are many unforeseen reasons that lead to it- most of those can easily happen to us too.

JUL

2010

So true Gary! Distressed sellers are going through one of the toughest times possible. It's nice to know that we are in a position to make that situation a lot easier for them if we will act with compassion!

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Gary Woltal - Assoc. Broker REALTOR® SFR Dallas Ft. Worth

Flower Mound, TX

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Keller Williams Realty

Address: 2611 Cross Timbers Rd, Suite 100, Flower Mound, TX, 75028

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