I've recently had my eyes open that my job as a REALTOR is becoming less about listing and selling homes, and more about counseling my clients to reduce damages. I've been very successful as a listing agent for the past many years, just before the hyper market ramp up and even this past year, but it seems as of late that there is little I can do to sell a home that is evenly fairly priced. It's starting to become clear to me that if a home is going to sell in our market (rural area south of Northern Virginia) that the home must be significantly less expensive than it has been. Many of my client recently have called it quits and wish to just let the house go to foreclosure. They are leaving against my advice to get rentals so that the foreclosure issues doesn't reflect on them when they try to rent. Most of these folks are depressed, fed up, very much in debt and scared.
In several cases I have the one spouse trying all she can to work with me through the egregious short-sale request process, only to find that the spouse simply won't help. God help me if the spouses are divorced or unmarried co-owners. I've got several where one is just walking away. They aren't helping with home maintenance and staging, none-the-less financial advice. They've simply stopped paying the mortgage and they are more than frustrated with the barriers lenders have put up to helping them. If we can even get in touch with the lender, as their telephone lines are mysteriously dropping calls. The folks we need to talk to are never available and it takes weeks to get an answer just to hear that the lender isn't prepared or willing to accept offers or short-sale requests. The frustration goes on and on.... Here is what I've seen with at least four families in the past two weeks (during the Christmas season); they are simply tired of fighting one another and the market and the mortgage industry and they are simply giving up. No more attempts at making mortgage payments. They don't want to see one more updated CMA telling them that their house isn't worth what they owe on it. They don't want to hear that the average days on the market is twice what they've already attempted and they really, really don't want to hear that all marketing attempts are being done and that the supposed Federal assistants plans really aren't going to help the folks selling their homes. So, they are giving up.
I was a EMS medic for over ten years and too many times I saw folks who were critically ill and had fought the illness for years become much happier when they stopped fighting and simply lived each day to it's fullest. I sometimes feel that is how my sellers are becoming. They are surrendering to the fact that foreclosure may not be the worst thing in the world and ruining their marriages and relationships over this housing industry crisis isn't going to kill them.
Is there solace and serenity in the surrendering to the fact that their credit has been damaged and it may be years before they can enjoy home ownership again? I am beginning to think for a very few, there is. Now, I am not recommending that any of you reading this recommend to your clients or believe that foreclosure is the best option. However, I have been on the phone with some clients for hours trying to calm them, counsel them and walk them through this issue. We have explored short-sales and steps to foreclosure and home maintenance and what the Deed of Trust requires you to do. We've explored Deed in Lieu to save the embarrassment of public notice of foreclosure. We've chatted about how to tell your children and family and if getting a third job is the best option. It's heartbreaking. Each morning I pray over each listing file for wisdom on what to do next. Each morning, I come up with the same thing - just do our best. My encouragement to other practitioners is to spend a little more time listening and also more time studying and training about the steps your clients can take to limit their damages. I fully understand that we don't get paid for our time "counseling" on issues other than how to sell the home, but we are the aggregators of the knowledge and should be of the wisdom. Sometimes it's not just all about the paycheck...
Matthew Rathbun ABR/M, ASR, e-PRO, QSC, GRI, SRES, Brkr
;)
;)
Good points - I think there is much to be said for your point of surrendering; I think the relief of it being "over" in a sellers mind may be somewhat like a morphine drip.
Have you ever thought of having a seminar? For folks interested in doing a short sale? You might be surprised at the turnout.You would be the man to teach it. I wonder if there are a ton of folks out there who are behind and just don't know what to do.