Real Estate is about people, not money! Part 2

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

Today I met with another pre-foreclosure Seller. I sure am getting a lot of these lately. Anyway, I spoke with this gentleman yesterday and could tell he was really stressed out. Life had dealt him a bad hand this year, health wise, and he has found himself disabled and unable to make mortgage payments. In fact he hasn’t made any for 5 months. His wife has just started back to work, so they are now in a position to start making payments, again. So that’s a good thing.

I’m writing this post to bring to your attention “predatory lenders” and how they prey on good people’s misfortunes. First, these folks have no other debt except their house, which has a mortgage balance of approximately $170,000, including missed payments and a prepayment penalty. Fortunately, the Lender has not started foreclosure proceedings and have not tacked on Attorney fees, yet. When I walked in today, the first thing the Seller started telling me, was how he was working with a different Lender, to see about refinancing his house, to “help” him out and how they should have an answer for him in 3 weeks. With this is mind, he only wanted me to list the house for 3 weeks, if I could sell it before the loan came through then good, if not he would take the loan being offered. Well needless to say this did not appeal to me and my immediate thought was to just give this guy some quick info, politely bail out and leave. But I couldn’t do it. He was very stressed so I decided to get some more info from him and see if I could give him some advice.

Well to start, his house is only worth $245,000 to $250,000 max. It turns out, the lender that is willing to “help”, has told him that he can do a loan for 65% LTV based on an appraisal of $300,000! And will only charge him $10,000 in closing costs. Now if you do the math, it means the Seller will have a new loan balance of $195,000 and after paying closing costs MAY get a check for around $13,000. His current payment of $1,400, that he can’t afford, will go up to $1,500 (this is what the lender told him). Now what is wrong with this picture? Well first, how can a house appraise at $300,000 that is only worth $250,000 max? FRAUD. How can they quote him a payment of $1,500 on a high interest loan of $195,000? LIAR. How long will this Seller be able to make payments before he is in foreclosure again? SAD.

Now being the good little Realtor that I am, I pointed this stuff out to the Seller. I explained to him that they are ripping him off and if you take them up on their “help” you will be digging your hole deeper. I also explained to him that his current lender does not want to take the house back. I suggested, that if they are now in a position to start making payments, then they need to contact the current lender and negotiate a loan modification. Since he has no other debt and has a legitimate reason for his financial difficulties, there is a better than good chance, that they can work it out and keep their house. I could actually see the glimmer of hope come into their eyes. They have been buried in stress and have been getting letters from “sharks” everyday wanting to “help”. They did not know they had other options. They don’t want to move. They love their house and just want to get beyond the financial hardship.

So folks, it was a great listing appointment! I did give them some info on selling but really do not think they need or want to sell. I told them if things don’t work out with the bank, then give me a call. I will be there for them.

They both walked me out to my car. Mrs. Seller gave me a hug and asked me for a stack of business cards. And Mr. Seller was really excited and pumped, about having another option, instead of selling or refinancing.

Folks, I’ve said it before and I will say it again, “Real Estate it about people, not money” As Realtors and Lenders, we can make a difference in people’s lives. Make it your goal to listen and to give sound advise. I left this listing presentation with my sign in my car and a smile on my face. To me, that’s priceless!

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 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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Comments (32)

Ray Saenz
Exit Realty Laredo - Laredo, TX
Homes for Sale in Laredo, TX - Texas, Realtor

Bryant

Who don't love your blogs ? :)

I always read them

Ray Saenz

Nov 01, 2006 02:06 PM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Margaret, this is our 5th grandchild. Lucky for me I have been sleeping with a grandma for 10 years.

Carolyn, thank you so much for the kind words. We are all so fortunate to be in the business we are in. I love what I do and being able to help people in some small way makes it even better. And to think we get paid for this stuff!!! 

BTW not one comment on the smiling pig. I love that little oinker!!

Nov 01, 2006 02:07 PM
Taiane de Gregorio
Sunvest Communities USA - Orlando, FL

Hi Bryant,

I'm very happy that you always take the time to read my blogs. I'm doing fine thanks for asking, trying to work out a closing that is giving us a little problem, but I hope we can close it!

Nov 01, 2006 02:21 PM
Bonnie Erickson
Tangletown Realty - Saint Paul, MN
I encountered a similar scenario last spring.  The highest sold house in the neighborhood was $190,000 and that house was a 10!  The listing appointment house had a mortgage of 205,000 just originated 4 months earlier on an appraised value of 245,000!  Now how can that be when there were no comps in the neighborhood for the last 2 years that sold higher than 190?  Did I hear you say the Fraud word?
Nov 01, 2006 03:59 PM
George Galvan
Professional Real Estate Partners - Gilbert, AZ

Dear Bryant,

I know you know little about me since I am newer to Active Rain, however; I specialize in buying and selling pre-foreclosure homes. 

Before you judge people like me I would like to make one thing perfectly clear. I am a christian. I am ethical. When I contact an individual that is in pre-foreclosure I make certain that I let them know of all their options and educate them. ( To include contacting their lender and trying to work things out in order to SAVE their home)  ....not simply take advantage of an individual or family.

I make certain that they go over any and all scenarios  that could assist them and PREVENT foreclosure prior to have someone like  " We Buy UGly houses" try and offer them        $5, 000 to simply walk away. 

Unfortunately, there are too many “predatory lenders” out there that prey in individuals. In Arizona, one of the biggest problems are the mortgage companies that prey on the  hispanic sector. They unfortunately are not educated in the english language, sometimes even are introduced to loans illegally and unethically in order to make a "quick buck".

For those individuals that take advantage of these individuals that are in foreclosure, I ; instead of continuing the cycle of being predatory, file a complaint with the Dept. of Banking and have that mortgage company investigated on the buyers behalf. By this time the buyer could care less if the "truth" came out as long as they either do not lose their home or as long as the individual that LIED and TOOK  ADVANTAGE  of them was  brought to JUSTICE.

If I do actually purchase a pre-foreclosure property it is simply because they have NO OTHER options and they are in a situation where the "LENDER" is going to foreclose on them. If at that point I can be the "lender" I will purchase the property and  do a lease option with them so that they can stay in the home and not pull their children out of their school, etc... 

Is it unethical? NO.  Is it good busness? Yes.  Can I sleep at night? Absolutely. Why? Because I can honestly say that I would rather lose a deal and spend an hour to help a family re-establish themselves and work out hings out e\with their lender than make a buck.

 

Oh well, enough rambling. I deal with this every day. I empathize with these families. If you or anyone else in AR has any questions r concerns or if anyone in pre-foreclosure reading this BLOG would like any FREE advice regarding how to PREVENT foreclosure please feel free to conatct me:

 TOLL FREE @ 1-866-807-2887.  

Bryant, Excellent post.

God Bless.

Nov 01, 2006 04:51 PM
Kengo Ueno
Prudential Locations LLC - Honolulu, HI
(R)
You are a great person Bryant.  I believe in karma and that good deeds will come back 10 folds.  Kudos to you.  I'm new and I look forward to reading more of your blogs.  Great job. - Aloha
Nov 01, 2006 06:01 PM
"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

"Hubby=Broker Bryant"

Baby...I told you no one gets the pig but you and me. Even I had to reach to get it. I do get it though. Go figure.

Yes Lovely Margaret. We now have one Grandchild for every decade we have lived. It is cool...Love the whole GrandParent thing. We really do.

"The Lovely Wife"=Five Grandkids now...ROAR! 

Nov 01, 2006 09:11 PM
Ann Cummings
RE/MAX Shoreline - NH and Maine - Portsmouth, NH
Portsmouth NH Real Estate Preferrable Agent

BB, what a priceless thing you gave - HOPE!  Those people will be your fans forever now, and all because you chose to spend a little time hearing about their situation and then offering them alternatives. 

YOU are what WE should be all about - people helping people.  We all only live once, and you have certainly made a bed of roses for your life and those enriched by their experiences with you.

Thank you again for all the sharing you do with your posts!

Ann Cummings

Nov 01, 2006 09:26 PM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

George Galvin,

Your comment would be a great post so more people would read it.

www.homerome.com

Baltimore,Md

Nov 01, 2006 11:15 PM
Mary McKnight
Sacrilicious Marketing - Orlando, FL
I am so glad to know there are Realtors like you and TLW out there that really care for your clients.  Thanks for letting us, non Realtors, Know that good people make good Realtors too!
Nov 01, 2006 11:27 PM
Jeff Miller REALTOR ® Tampa Bay, FL
Charles Rutenberg Realty - Wesley Chapel, FL
20 years experience Tampa Bay/Wesley Chapel

Thank you for sharing your valuable insight with these people. 

You did the right thing instead of hitting the door when you heard their scheme.

 

Gold star for Tutas today. 

Nov 01, 2006 11:30 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

By the way Bryant, that is one evil looking pig, let alone....ugly.

Again, good post.

Nov 02, 2006 12:26 AM
Nick M.
Certified Residential Appraiser- West Palm Beach Real Estate - West Palm Beach, FL
Realtor-Appraiser in West Palm-South Florida Real Estate Appraiser

Let me get my step ladder so I can give you a big pat on the back!
great job!!
your actions are a model for all all of us!

(big/little) nick

Nov 02, 2006 12:32 AM
Scott Gormley
Oak Valley Mortgage-California Home Loans and Refinancing - Chico, CA

Hey Bryant,

This would not appeal to the investor as well. After the home has been on the market within the past 12 months, if he refinances they are going to require a prepayment penalty....which means even more money on top of closing costs if everything falls apart...Great blog!

Scott

Nov 02, 2006 01:39 AM
Gena Riede
Riede Real Estate, Lic. 01310792 - Sacramento, CA
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699

Yes, I've been doing the same thing, more lately with all the loan problems. I always feel better knowing that I have helped someone that just doesn't understand and is in a very vulnerable position.

My guess is that it will come back two-fold. Actually, on Halloween one of my neighbors that I recently helped came by with his children and thanked me again for helping them and how impressed they were that I was so honest. They want to have me over for a bar-b-que.

It's always a "good thing" to help out our fellow man even if it means there is no $ in our pockets...it's in our hearts, instead.

Nov 02, 2006 01:41 AM
Christine Adler
FindAHomeWithMe.com - Fort Lauderdale, FL
SE Palm Beach, Broward & NE Miami-Dade Counties FL
Most realtors see a great deal or someone in trouble and try to take the home or make money - I think it is soo much better to work with them to sell the home and let them have the money. They need it.
Nov 02, 2006 04:03 AM
Ken Smith
Suburban House Hunters - Arlington Heights, IL

It amazes me how many sharks are out there trying to prey on the weak. So many people only care abou the next dollar they can make and forget that there are people involved.

Glad you could give these people a little hope!

Nov 02, 2006 06:37 AM
Sean Carroll
The Get Off Your A$$ Academy - Manhattan, NY
Real Estate Speaker and "Expert" Coach

you definitely did the right thing! There are some people out there who are ONLY about the money, and although they may do well in the short term, I am a firm believer that doing the right thing will always be more rewarding in many more ways than just financially.

Nov 03, 2006 06:02 AM
Alexander Harb
Knights Investing - Mesquite, TX
Dallas, Texas Real Estate Investing

God bless ya, Bryant....... I am so proud of you for doing what Jesus would have done.....

I know this might be second nature to you to do what you did...BUT I just wanted to pat ya on the back for doing the right thing......

Referrals WILL come because of this Bryant...... maybe not from the person who you gave all the business cards to, but God saw what you did....... and HE will repay you.....hehehehe

:-D

Nov 03, 2006 08:42 AM
Ginger S
Wilkinson & Associates, Wilmington NC - Wilmington, NC
Wilmington NC Real Estate & Relocation~

THese folks were blessed by your compassion and care.

You are the perfect example of Do unto ohters. Real Estate Style.

 

 

 

Nov 05, 2006 03:06 PM

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