When Real Estate Takes a Piece of Your Soul

I can totally relate to your experience.  I forewarn buyers in advance that are set on the "foreclosure" that it will be a bumpy ride and, yes, the banks make up the rules of the game as they go along.  It's not a pleasant experience and many home buyers (particularly first time) are taken advantage of.  It may be a deal financially, but it doesn't feel like a "deal" when you are doing all the giving.  Thanks for the post.  It was a good one.  Thankfully the good transactions outweigh the others helping keep the crustiness from forming too many layers!

I discourage buyers who need to get into a home by a certain date against purchasing foreclosures or short sales, because you just can't control the time frame of the closing.  Fannie Mae pulled a foreclosure away from my buyer just days before closing because of title issue and it took another four months before it closes.  I've been on the buying side of a number of foreclosures at this point and although there have been some difficulties and frustrations, everything has worked out fine, but I do all I can to ensure that the buyer has the latitude and temperment to handle the rocky road that sometimes accompanies foreclosure sales and to set realistic expectations about the process upfront.

There are many days that I am a little down in the dumps about not being right in the middle of the short sales and repos and all.

Then I am fortunate to read a buyer agent perspective or a short sale agent perspective and it makes me feel great that I have not had to experience what you and your buyers have...

Hi, Bob, you're preaching to the choir.  Just finished a sale with Fannie Mae.  OMG, took extra two weeks to close because they couldn't get the signed HUD back to the buyer's lender.  My buyer had to pay extra for her storage, plus she took vacation time off from work so she could move, and she lost because of the seller.  We ended up having her loan fund before the long Thanksgiving weekend and she couldn't get her keys until late Monday afternoon (after recordation).  She paid interest for those days she couldn't be in her new home.  Do you think Fannie Mae cared?

Also, I might mention Fannie Mae renegged on the bonus to me as the selling agent that they advertised!  When I questioned the Listing Agent about it I was told it will KILL the deal.  Will I be so hot to jump on a Fannie Mae owned home in the future for my buyer clients?  I'll think twice, that's for sure.  Although my client bought a great property, it was to her inconvenience and there was nothing any of us could do about it!

I've had some good experiences and some funky ones with foreclosures and short sales.  But I've also had more than a few interesting experiences with traditional sales.  Each transaction is different, I learn and go on and throw the garbage into the live and learn pile of situations to head off at the pass, things not to take for granted again, and potential mistakes to quickly truncate.  I love being a buyer's agent, there is little better than seeing the faces light up as they find their dream house.  I keep everyone as calm as possible while we get from "oh, wow!" to "thank God it's over!".

And just watch out for those VA loans - the appraisers can be brutal!  Took until March to close one that was supposed to be done by September.

Yvonne Wilder

Bob - I've had several experiences with REO's and short sales over the past 3 years. Every one of them has been tough. I had no idea how tough the real estate business is.

I really feel for you! Paragraph #2 is the exact feeling I had when dealing with a Freddie Mac agent on a closing 2 months ago. I thought to myself, "What on earth crawled up his pants and died?"

Some deals now are so painful. We just have to keep going and outlast this market.

Aloha on maui the REO and Fannie Mae homes are a slice of Paradise and to lose a little in the escrow is alright because you're buying a home / condo for less then what your Neighbor had paid, you might have to pick up some repairs, HOA payments and back taxes, yet owning a piece of Maui is like adding to you're good Karma, you must have an A OK soul to get in. Aloha ha ha 

Hugs hugs.... I cant find a word better than you can. Tomorrow will be better.

If you didn't care, you wouldn't feel so bad about the experience. You're not crusty yet.

I have never seen the government do anything or handle anything like normal business or people would do it.  There is an exception, big banks are almost has bad as the government.

Bob, I think the word might be "jaded".  I know I got there.  Not from foreclosures and short sales, though.  I got there during the hay days of properties priced too high and clients losing a couple of deals before they finally got one.  Clients who felt lost and confused.  Why should they have to expose themselves so completely and be on the short end of the stick.  This was Charlottesville, after all.  And did anyone really care about them?  Heck, buyers were a dime per dozen, so they better sit up and eat their vegetables.  I got so burned and so sick of being treated like I was the bad guy, I definitely became jaded.  What I never did, though, was be mean to anyone.  I wonder if the foreclosure end of things adds that one last element that breaks the camel's back --> everyone trying to get into the agent's pocket.  The bank doesn't give two hoots about that agent, and still the agent has to lick the bank's shoes... if they lose the bank, the house of cards begins to falter.  Like everyone, I'm sorry you had such a crummy experience.  The only advice I have to offer is to see if for what it is... an example of what's to come.  Seriously.  You need tough skin to work that end of the business.  If you expect the worst and get better, then you will feel great!

Dear Bob,

Foreclosure transaction can have more drama than is warranted. I hope they will slow down soon, so we can relax once in a while.

Hi Bob:  Your observations are so very relatable.  However, we really have to work hard to not become "crusty" by daily focusing on the aspects of this business that brings us joy: helping people buy homes, sell homes, being self employed, ability to make a decent income from hard work, creativity, and persistence, and winning when a deal closes.  And so many more reasons. 

Great post. It just further solidifies my decision to only work foreclosures for cash buyers and I don't work short sales at all. I'm glad yor clients got their dream home, though.

Bob - Yes, you need to offload your anger and frustration. So... take a big deep breath and let out a big sigh while looking to the sky.

Do it about 20 times if you have to, and as crazy as it sounds, that WILL allow you to release the anger and frustration. I learned it from a self-help program a few years ago, and I've done it when I KNEW it wouldn' t work, but it did.

Meanwhile... things have sure changed. Back when I was still in real estate I handled the Fannie Mae listings for our town. They weren't easy to deal with when it came to negotiating offers - but they always had me get the houses repaired and cleaned before they ever went on the market.

Part of my job was to evaluate the damage, get the bids, hire the contractors, and see to it that the work was done.

My Fannie listings often looked better than "normal" listings because they were scrubbed, repainted, carpets cleaned or replaced, plumbing all checked out and OK, lawns mowed, etc.

The really dumb thing was that no matter what number I gave them for a BPO, they'd list $10,000 higher. Then the properties would stay on the market until they gradually dropped the price down to below what I had recommended. It was a silly game and it cost them money more than once.

I think you shared in the right place.  I hope you were encouraged by the comments and can go out there and do it again,  Good luck.  Margaret C.