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Isn't part of our job to educate?

By
Real Estate Broker/Owner with 970-216-0530 http://WeSellDeltaCounty.com Colorado Lic# 40029852

I discovered a situation in the last couple of weeks that is really bugging me.  A local Realtor has a home listed that is surely going into foreclosure.  The agent KNEW when he/she listed the home that the owners were in trouble and the "Notice of Election/Demand" was filed with the county treasurer.  The house is overpriced.  What is bugging me is this.  Shouldn't this agent have educated the homeowner on what was about to happen and immediately pursued a short sale if that was possible? I know in this case, that was now what happened.   If that agent is not educated enough to negotiate the short sale avenue, then find someone who is.  I understand that there are rules to follow as to who qualifies for a short sale, but as professionals, we should be doing everything we can to educate.  Listing homes at an unrealistic price and hoping for a miracle is not professional conduct.

We haven't seen a huge increase in the number of foreclosures in Delta County, but there are more than in previous years.  Frequently, by the time we (the Realtors) are called by the homeowners, they are several months behind on their payments and in a panic.  We, as a profession, have to be the leading force in educating these homeowners with their options and then pointing them in the direction of those that can keep them from loosing all their equity and their homes.

 

Posted by

Eileen Liles , CRS, GRI, SRES, CDPE

Macht-Liles Real Estate Group

Cedaredge, Colorado

Comments (7)

Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
GRI, e-PRO, Executive Broker, Searcy AR

I have not done any short sales and they don't appear to be used here but I do not think you could list a house below what they owe (which may by  why it is listed so high) without being in danger of having to pay a commisssion if the short sale didn't go through.  I'd think you'd have to have an offer and then venture forth with the lender.

May 12, 2008 06:42 AM
Anonymous
Anonymous

Eileen, it is our job to educate, and the truth is that if they lose their home to foreclosure, they have lost any equity that they had in that home to begin with.  They do need to realize that they need to do everything possible to get that home sold as quickly as possible!  Good post!

May 12, 2008 06:46 AM
#2
Ida McCarthy
Ida McCarthy-Lombard Real Estate - Lombard, IL

Eileen, I don't know about your situation with that particular seller, but I had a seller who wanted to do a short sale, and her lender said her home had to be on the market for 90 days before even considering a short sale.  I'll bet that's what happened there. 

 

 

May 12, 2008 06:51 AM
Eileen Liles
970-216-0530 http://WeSellDeltaCounty.com - Cedaredge, CO
Macht-Liles Real Estate Group - Cedaredge, CO

Barbara - I have seen homes listed in our MLS with the notation "Subject to approval of Lender" which is the tip-off of it being a short sale. 

Ida - Might be what happened.  If the lender requires it to be on the market for 90 days and you can't make the payments during that time, you could wind up in foreclosure before you finished the 90 days....I think the most important thing is to get that owner talking to the lender IMMEDIATELY if they are not able to make the payments.

Thank you all for the comments.

 

May 12, 2008 07:06 AM
Kathy Torline
ERA Herman Group Real Estate - Colorado Springs, CO
Colorado Springs Real Estate Blog 719-287-1049

Eileen:  I share your irritation.    I showed a property this weekend to a buyer; and the property is in foreclosure.   The MLS information on the property didn't say anything about it being in foreclosure.  Luckily for me, I did some homework before I showed the property and found it was going to be sold in less than 3 weeks.  My buyer had some interest, but didn't want to make the decision that quick; and getting a 3 week close with financing, FHA appraisal, inspection, etc., isn't that easy.   Seems that something should have been notated in the listing.

May 13, 2008 02:12 AM
Dionne Morgan
Realty World Solano Realty - Vallejo, CA
Broker REALTOR ,GRI, e-PRO

Eileen Sounds like you guys have not been hit as hard. Here in California in many communities Short Sales  and REOs are difficult to avoid. They are the rules and not the exception in many areas.   Pricing the property is certainly key but Real Estate agent should be cautious of Sellers seeking guidance outside the realm of our expertise. Sellers need to be advised to seek a Tax professional and a Legal professional immediately.

Thanks for dropping by my blog recently. Best wishes.

Jun 30, 2008 03:03 PM
Eileen Liles
970-216-0530 http://WeSellDeltaCounty.com - Cedaredge, CO
Macht-Liles Real Estate Group - Cedaredge, CO

Kathy - Thank goodness we can go to the County Treasurer's site and see what "Notice of Election and Demands" have been filed.  I can't figure out the reason for the notice of foreclosure on the new listing agreements...I guess in your case you might have been able to get the lender to give you an extension if there was a potential buyer...

Dionne - I agree about being careful, but WE are supposed to be the ones educated on navigating the short sale world.  Sellers usually have no clue except that they are in trouble and can't make those payments.

Thank you all for commenting.

Jul 02, 2008 10:27 AM