You’re Either Ahead of the Curve or You’re Behind it

Education & Training with Ludwig & Associates


Motivational Power Quote


You’re Either Ahead of the Curve or You’re Behind it  

“You can’t just ask customers what they want

and then try to give it to them.

By the time you get it built, they’ll want something new.”

Steve Jobs 1955 – 2011, the co-founder of Apple        


As I see it . . . . . . .


You’re either ahead of the curve or you’re behind it


As we can attest to; customer’s demands are changing and market conditions are evolving.


As business professionals we have to understand the paradigm shifts in the market to stay ahead of the curve and remain relevant.


One of the largest area’s in the shifting market that continues to create challenges are the distressed sales.


There are more and more problems with title reports that are turning up after the closing. One of the issues is in the amount of the exceptions that are on the title insurance report as a result of the break in ownerships and the chain of title.


In a recent case several months after the closing of a distressed property a credit card lien for $20,000 showed up on the home when the new homeowners was in the process to refinance the home. Nobody wanted to take reasonability for resolving the lien and the new buyer had to pay an attorney to clear up the issue.


There is also major issue that is becoming a real problem for sellers of short sale properties.


If the seller sells their primary resident where the sales price doesn’t cover the mortgage it creates a deficiency at closing. Here’s the problem though December 31st of 2012 the lender will issue a 1099 to the seller. Through December 31st the sellers will not have to pay taxes on the amount of the deficiency if the short sale is their primary residence. Here’s the catch the lender has 5 years to file a deficiency judgment against the former homeowners.


The lenders have been selling the rights to lien to the properties much like they have been in selling the bad credit card debt to third party collection agencies.


Here’s the big issue, if a lien is filed against the former homeowner that will prevent the former homeowner from purchasing a new home until they paid off the lien. 


If grant money was used as part on the purchase price to buy a home being sold through a short sale or becomes a foreclosure. The sale doesn’t release the buyers from the obligation to pay the grant money back. 


To stay ahead of the curve on the sale of distress properties both the buyers and sellers need to have real estate attorney to represent them at the closing and for their future protection.  


Either you’re ahead of the curve or behind it. Distress sales can create a long tail and potential long term problems for everyone involved in the transaction it makes common sense for an attorney protect interests of our customers and our license.


©2012 Lou Ludwig, Sales and Management Consultant, Success Coach, Speaker, Trainer and Author



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Paula McDonald
Magnolia Realty ~ Granbury - Granbury, TX
Magnolia Realty ~ Granbury, TX 936-203-0279

Good morning Lou.  Well said!  We must keep our eye on the market so that we truly know which way the pendulum is swinging!

Jun 24, 2012 11:08 PM #1
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

That is such a great quote, and but a wonderful author of course too!  Have a great week Lou!

Jun 24, 2012 11:37 PM #2
Dale Bledsoe
Crown Key Realty - Tracy, CA
Realtor in Tracy, California

Great Steve Jobs quote. I worked for a very long time for a Japanese Consumer Electronics Company that believed that inovative use of new technologies would lead to great products. Once the product was developed you then created the demand. That is how many technology driven products eventually become household standards after a few years. Examples might include a Walkman, CD players, DVDs and digital cameras. Develop first then market. Steve Jobs and Apple are correct.

Jun 25, 2012 01:52 AM #3
Cheryl Thomson, REALTOR, U.S Army-Veteran
Jobin Realty (703.216.5635) - Woodbridge, VA
Real Estate in Northern Virginia

Hi Lou.  Yes, that 5 yrs window is something we didn't expect...

Jun 25, 2012 04:30 AM #4
Sandy Shores FL Realtor®, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County Real Estate, Florida's Space Coast

Happy Monday Lou!  Hope you are staying dry.  In the ever changing real estate market, consumer demands are adjusting as they are out in the market looking at what properties are available. And we must adjust with those demands. Great quote!


Jun 25, 2012 04:48 AM #5
Wanda Kubat-Nerdin - Wanda Can!
PK Real Estate Utah South - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Lou, We must always adapt and adjust to continue moving forward, especially as quickly as some conditions change! Must be out in front!

Jun 25, 2012 05:37 AM #6
Irene Durocher
Coldwell Banker BUYERS AGENT - Boca Raton, FL

Hi Lou, great advice on some of the pitfalls in buying distressed properties.

The deficiency judgment can hurt previous owners. They are not free and clear, like they thought.

Jun 25, 2012 07:54 AM #7
Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Rockledge, FL
... a small office, delivering big service!

Better to be out front than playing catch up, for sure.  Short sales without a deficiency waiver is not the best option.  Sometimes having an attorney involved with the sale process will save a lot of money later.

Jun 25, 2012 10:23 PM #8
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Lou Ludwig

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