Earlier this year, I took on a listing that was to be a short sale and two other listings for a person that weren't going to be short sales. But, my client had an 800 credit score and had never missed a payment.

The problem was he over-remodeled a property and it was now not going to be able to sell for what he owed. My client didn't want to rip off the bank and not pay them what was owed, but wanted to some how come up with an arrangement with the bank that they will get all their money owed if they promised not to damage his credit.

He hired me because of my creativity and on a recommendation from a mortgage broker he went to college with. I came up with a solution that he thought was wonderful and I presented it to the loss mitigation department. They said, "HELL NO! We will not do that. Your client is just going to have to sell it and if his credit is ruined, he should have thought of that before he remodeled it."

Here was my proposal to the bank and why they didn't except it at first I will never know. My client would do a short sale on the one property and whatever the loss was to the bank on the commission, closing costs and the remainder of what was owed on the loan would be put on one of the vacant lots that were also for sale. You see the bank was going to get every dime they were owed and my client's credit was going to be saved!

After getting a "HELL NO" from the loss mitigation department, I had to think outside the box and decided to get in touch with the president of the bank and explain to him that this is why the banks were in trouble. People were offering them ways to get paid every dime they were owed and instead of thinking, they were like robots, trained to say "NO" to everything.

Well, to my surprise, I got a response from the president of the bank and he agreed that my offer was very smart for my client and for the bank, and agreed to the arrangement. He sent a letter to every manager in the company and CC: me with the e-mail telling his managers of my proposal and that saying no to something like this was not a very smart business decision, and just because it hasn't been done before at this time in the banking industry, we have to think outside the box and if someone comes up with an idea that gets the bank paid, but is unorthodox, to except the offer.

I was proud of this president to take this stand. I thought I'd finally found someone in a bank that was willing to listen and do something to help the little guy when they needed it and in the process help the bank.

Now, today I found out this president of the company I talked to is out of a job! The president that thought my idea was smart for both my client and his company was Michael Perry of IndyMac bank, and now I'm not sure what the situation for my client is.

I'm hoping the FDIC will see to it to honor Michael's acceptance of our offer and let my client keep his credit and the bank get their money.

 Only time will tell!

Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739

Photos courtesy of mikecco and abenjumeda