"Let the Sellers BEWARE" ... and Be AWARE. Playing Defense & Offense While Selling a Home

By
Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI

 

 

     "Let the Sellers Beware" ... and Be AWARE!

       Playing Defense & Offense While Selling a Home ...

 

     Huh? Beware?  Thought that was the Buyer!

 

    Gene Mundt Chicago Bancorp Short Sale/Football Pic

    Not these days!  Agents, buyers, and sellers must know how to play DEFENSE and OFFENSE throughout a property transaction.  This "one-of-a-kind market" delivers much more for each of them to consider than ever before. 

    Prior to the present challenging market, sellers asked their agents, "What will I net in proceeds at the closing of my sale"? Now, more often the question is, "If I sell my home for less than I presently owe on my mortgage, what happens?  How does that work for me?  What does it do to my credit and my financial future?"

    During the last week, further complications have occurred within the mortgage industry.  These complications surround the ability or inability to close on foreclosed properties.  This muddies the waters for sellers, their agents, and potential buyers even further.  You can't overlook how it effects we mortgage originators as well.  No one at present, is happy.

    Many agents are now finding that they have performed their services, listed a property, maintained a vacant home, its' land, secured a buyer, assisted with securing the financing, ordered the inspections, and much more ... only to be told that as of now, the loan cannot close.  A seller's attorney may possibly say that the lender has "halted all deals on foreclosures until further directions or notice". 

    No one knows how this will play-out, as of right now.  I personally am trying to stay calm ... and positive as possible at this point, with the hopes that this latest twist in the story will be given the utmost and urgent attention needed ... and what we ludicrously have called "normalcy" within our industry, will return fairly quickly.  Time is definitely of the essence, but it's hard to be definitive regarding a time element with this.  Our clients deserve the truth and our understanding of the situation, as it presents itself in the future. 

    For agents working with sellers experiencing the now common problem of being  "under water", this latest mortgage revelation can post quite a problem as to proceeding with a transaction of this kind.  These sales are definitely not for the timid.  An agent better be a "Vince Lombardi",  a coach of sorts for their sellers.  A coach that retains tight rein, handles their "team" with firmness,  presents great strategy, and displays a willingness to tell their team what they might not want to hear ... but must

    In every sense of the word, this agent must prepare the sellers ("team") to play stellar offense and defense in order to survive and win in their game of home sales.  

    But what if the seller (team) disagrees with the philosophy laid out by the agent (coach)? 

    Just as a coach in major league football, the agent must be in charge as the expert.  Just as a coach during any game, the agent does the seller no favors long term if they allow the homeowner to dictate an unreasonable sales price for their home. No one wins if that ends up happening, and in fact it does everyone involved a grave disservice.

    If need be, a coach must be willing to forego a full touchdown and glory and go for the short field goal ... if that decision positively wins the game.  A short sale is much the same thing.  From a Credit Bureau and lender's viewpoint, it is definitely a more positive outcome for a seller than foreclosure.

    In the future, a seller that sold "short", and received the bank's approval to do so, fairs much better than a seller that walked away from their mortgage obligations.  They can return as buyers much more quickly. 

    Ultimately, everyone on the team must have the same "goal" ... coach and player ... agent and seller.  Success is won much more easily if everyone is of one mindset and works all in one direction and together, playing offense and defense within their transaction.  Educated, well-informed,  "well-coached" sellers accomplish this best. 

    If you are a seller and are working with an agent fitting this definition, you are blessed.  Listen carefully.  Discuss thoroughly.  Move ahead with confidence in their wisdom and expertise.

   "Let the Sellers Beware ... and Be Aware"!

 

  

    *  For Buyers and Sellers in the Naperville/DuPage County, Joliet, Plainfield, Shorewood, Will County, Chicagoland areas seeking an experienced, professional real estate agent or broker, or other real estate professional ... please contact me for referrals.  I will be happy to supply you with the information you need.

        For those seeking mortgage, credit, or financial information and guidance, please contact me also.  Information regarding my services, my background, and more can be found at my website: http://www.genemundt.com/.

         You can follow me on Twitter, my Facebook fan page, and LinkedIn.  Your comments and contacts are very much appreciated.

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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656

 

Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 

 

Your Referrals & Testimonials are Always Greatly Appreciated! 

 

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. D B 10/12/2010 12:55 AM
Topic:
Home Selling
Location:
Illinois Du Page County
Groups:
Realtors®
Windy City Real Estate
Chicago-Northern Illinois Real Estate
The Single Home Buyer and Seller
Advice for Sellers
Tags:
credit
foreclosures
football
selling a home
credit scores
finances
credit bureaus
short sales
sellers
lenders
agents

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Ambassador
1,658,113
Alan May
Jameson Sotheby's International Realty - Evanston, IL
Helping you find your way home.

Gene - you've made the Daily Drop... it'll be interesting to see if you see an increase in comments here:

Oct 13, 2010 03:33 AM #20
Rainmaker
1,239,677
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Gregg:  I understand your concerns.  My viewpoint or post is written purely from my perspective and what I understand as a mortgage professional and what I see as the consequences to credit and mortgage financing in most cases.  The ramifications of each end result (short sale and foreclosure) is different moving forward should a homeowner/seller be hoping to re-enter the home market in the future.  At least at this point that is true.

I know that differing states/regions have differing laws about recapturing shortages and the tax consequences surrounding them.  I should have put a disclaimer in my post addressing that valid point.  I personally can only speak and write from my perspective as a mortgage lender.  It's always my advice or suggestion that buyers and sellers surround themselves (and protect themselves) in their transactions by seeking the services of professionals that will guide and assist them in every other facet of their deal. 

Thanks for your comments and taking the time to write ...

Gene

Oct 13, 2010 03:35 AM #21
Rainmaker
1,239,677
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Alan:  Thank you for making me aware of this fact this morning.  Much appreciate your taking the time to do so.  I'll report in as to the effects this has on my comments.  It'll be interesting to see the results.  Again, thanks ...

Gene

Oct 13, 2010 03:38 AM #22
Rainmaker
47,559
Robert Vazquez
75 FAST OFFER, LLC/ Countrywide Capital Group, LLC / CRP - Orlando, FL

Good read

Oct 13, 2010 04:11 AM #23
Rainmaker
1,239,677
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Robert:  Thanks!  Appreciate your doing so ...

Gene

Oct 13, 2010 04:15 AM #24
Rainmaker
1,431,260
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I have an escrow in trouble right now.  The tempation has been to throw in the towel, but instead I am helping the selling agent over come some problems; but just in case I am already lining up back up buyers to come in.

Oct 13, 2010 04:39 AM #25
Rainer
47,026
Lucien Vaillancourt
Native Sun Realty, Inc. - Jacksonville, FL
Jacksonville Florida Real Estate

I have not seen any comments about how the Title Insurance companies are reacting to this foreclosure debacle.  Won't they be on the hook to pay claims if the new owners are told they don't really own the home?

Oct 13, 2010 04:54 AM #26
Rainmaker
1,239,677
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Gene:  All avenues have to be considered and weighed if we are to truly represent our clients well.  This market continues to keep us on our toes regarding this.  Best of luck to you while moving forward with this challenging transaction.  Hope all turns-out well for everyone involved ...

Lucien:  The only real comments I have seen regarding Title Companies have been much like yours.  Questions as to how this will play-out with them and what their actions will be.  I've seen nothing too definitive in regards to that action though.  Perhaps they are taking a "wait and see" stance or not showing their cards too soon.  If I find anything that truly offers concrete information ... I will be sure to pass it on.  Please do the same, will you?  It would be appreciated by myself and all on AR ...

Gene

Oct 13, 2010 05:11 AM #27
Rainmaker
647,119
DeeDee Riley
Lyon Real Estate - El Dorado Hills CA - El Dorado Hills, CA
Realtor - El Dorado Hills & the Surrounding Areas

Thanks for you post Gene!  I agree with Missy - "Just never give up."  When all is said and done - This too shall pass!

Oct 13, 2010 07:33 AM #28
Rainmaker
1,239,677
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Dee Dee:  You and Missy are right ... we can't give up.  This latest debacle shall pass too ... and it will be interesting to see how and where it ends up.  Time will tell.  Thanks for writing and commenting.  Hope your business is healthy ...

Gene

Oct 13, 2010 10:08 AM #29
Rainmaker
1,551,941
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Congrats on the feature in the drop as Alan said. Good post. It takes teamwork that's for sure.

Oct 13, 2010 10:28 AM #30
Rainmaker
1,239,677
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Lyn:  You're great for stopping by and it's really appreciated and noted.  We all better have some pretty strong teams in this market.  Otherwise, we're sunk!  Good to see you ...

Gene

Oct 13, 2010 01:02 PM #31
Rainmaker
334,052
Ty Lacroix
Envelope Real Estate Brokerage Inc - London, ON

Gene, so in the game of real estate, you win some and lose some and it it either the coaches or players that must go. The secret is knowing which one.

TY

Oct 13, 2010 01:21 PM #32
Rainmaker
1,239,677
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Envelope Real Estate:  Good analogy ... and yes, unfortunately we all win and lose.  I guess the trick is to know the secret to winning more than ... well, the other option.  As with professional sports ... it isn't always the one that SHOULD go ... that ends up doing so ... 

Thanks for writing ...

Gene

Oct 13, 2010 02:44 PM #33
Rainer
141,910
James Baxter Encinitas Realtor
Realty Place - Encinitas, CA

Great Post.. thank you!

It is a tough market and we all need to work together as a "team" to win the game or get the deal done!

Oct 13, 2010 04:00 PM #34
Rainmaker
549,904
Tony Lewis
RE/MAX of Valencia (Hall of Fame) 30 year Valencia Resident - Valencia, CA
RE/MAX Valencia, Stevenson Ranch, Santa Clarita

Unfortunately every home sale is a potential lawsuit.  Keep notes and don't do anything that you would not want to be told in court!

Oct 13, 2010 05:27 PM #35
Rainmaker
183,977
Marjorie & Doug McKay
Engel & Voelkers Calgary - Chestermere, AB
Calgary & Chestermere - 403-207-1776

I am glad I am in Canada...I don't know how you are able to keep on going with all of the challenges that you have there..

Oct 13, 2010 05:58 PM #36
Rainmaker
1,239,677
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

James:  You're definitely right about that!  It's especially so now in this more challenging time and market.  Don't work together ... see the deal fall apart ...

Tony:  I learned how important taking notes was at my very first job.  My boss was adamant about it.  Get found not doing it, you were in a huge amount of hot water.  It's stuck with me and I'm glad that it did.  It's proven very beneficial more than a few times.  Thanks for writing and your comment ...

Chestermere:  I'm thinking that you've got fewer real estate problems ... AND hockey.  Sounds like heaven to me!!  Thanks for stopping by and chirping in ...

Gene

Oct 14, 2010 09:56 AM #37
Rainer
79,748
Cookie Hooper
True Blue Realty - Arvada, CO
Real Estate Sales & Property Management

With the rapidly changing market, dont you feel some days like you started out playing football and a hockey game broke out? I guess it pays to be versed in all sports. I'd better study my playbooks!

Oct 24, 2010 12:32 AM #38
Rainmaker
1,239,677
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Cookie:  Thanks for taking the time to write ... and if you figure out a real good playbook .. please share with all of us!  We all could use it ...

Gene

Oct 24, 2010 03:33 PM #39
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Rainmaker
1,239,677

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