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REALTORS AND LOAN OFFICERS-PLEASE DON'T DROWN

By
Mortgage and Lending with Homestreet Bank NMLS #404052

WHEN I GREW UP IN FLORIDA AND SURFED ALL THE TIME, A CLASSMATE OF MINE DROWNED WHILE SURFING.
HE GOT BLIND SIDED BY THE POWER OF A LARGE WAVE AND WIPED OUT. HE GOT SUCKED UNDERWATER, AND NEVER MADE IT BACK UP.  IT WAS TOO LATE FOR THE LIFEGUARD TO SAVE HIM.  IN THE AFTERMATH, THE LIFEGUARD KEPT GETTING ASKED THE SAME QUESTION:  HOW COULD SUCH A GOOD SWIMMER AND SURFER DROWN?
HE REPLIED WITH AN ANSWER THAT HAS STUCK WITH ME FOREVER.  HE SAID, "MOST PEOPLE DROWN BECAUSE THEY PANIC.  THEY TRY TO FIGHT THE WATER INSTEAD OF JUST PAUSING FOR A SECOND, GETTING THEIR BEARINGS TO KNOW WHICH WAY IS UP AND RAISING THEIR BODY AND HEAD TO GLIDE TO THE SURFACE.   THE ANSWER FROM THE LIFEGUARD,TO THIS DAY, HAS STUCK WITH ME FOREVER.  IT HAS CERTAINLY STUCK WITH ME IN THIS REAL ESTATE MARKET.

FOR THOSE OF US WHO GET INVOLVED IN REAL ESTATE TRANSACTIONS,WE ALL GET "BLIND SIDED".  THE BLIND SIDES RESULT IN "WIPE OUTS". IN OUR PROFESSIONS, JUST LIKE SURFING,
BLIND SIDES AND WIPE OUTS  ARE INEVITABLE.   LIKE SURFERS, NO MATTER HOW PREPARED AND SKILLED WE REALTORS, CLIENTS, AND MORTGAGE PROFESSIONALS ARE, UNEXPECTED POWERFUL "WAVES" CRASH DOWN ON US.   THAT BEING SAID,I WILL CONDENSE THE REST OF THIS TO ONE BLIND SIDE EARLY IN MY CAREER:
 
MY BLIND SIDE
:
     DISCOVERING THAT AN UNDERWRITER COULD NOT USE A SELF-EMPLOYED CLIENT'S BUSINESS INCOME SINCE HE HAD HIS BUSINESS LESS THAN 2 YEARS. MY ARGUMENT WAS THAT HE BECAME
SELF-EMPLOYED IN 1995 AND SPUN HIS BUSINESS OFF INTO ANOTHER BUSINESS AND WENT FROM A 50% OWNER IN OLD BUSINESS TO 100% OWNER IN NEW BUSINESS.  UNDERWRITER DID NOT SEE IT THAT WAY. BECAUSE ONE HAS TO HAVE NEW BUSINESS FOR AT LEAST TWO YEARS TO COUNT THE INCOME, THE UNDERWRITER DID NOT COUNT ANY OF CLIENT'S INCOME.  A HUGE, HUGE WIPE OUT!

I GOT ANGRY, FRUSTRATED, AND STARTED ARGUING WITH EVERYBODY. I PANICKED. I GOT MY BOSS INVOLVED AND CALLED MY CLIENT AND HIS CPA COUNTLESS TIMES TO TRY TO EXPLAIN TO UNDERWRITING THAT TECHNICALLY IT WAS NOT A NEW BUSINESS. WE LOST THE ARGUMENT AND NOW BEGAN TO SINK FURTHER UNDERWATER. MY REALTOR AND CLIENT REALLY BEGAN TO PANIC.  THEY ASKED ME
TO KEEP APPEALING THE UNDERWRITER DECISION.  I APPEALED TO THREE DIFFERENT UNDERWRITERS.  THE UNDERWRITERS  ALL ENDED UP WITH THE SAME CONCLUSION:  THIS WAS CONSIDERED A NEW BUSINESS AND  THE CLIENT'S INCOME COULD NOT BE USED. NOW, WE HAD LOST A WEEK'S TIME FIGHTING THIS. THE KICKING, ARM WAVING, AND EVENTUAL FRENZY GOT WORSE. WE WERE FURTHER
"UNDERWATER" AND WERE LOSING AIR .  THE TRANSACTION WAS DROWNING, AND WE WERE RUNNING OUT OF BREATHING TIME.

THE PANIC ESCALATED:   THE CLIENT, LISTING AND SELLING AGENT BEGAN TO TELL ME HOW HORRIBLE MY LENDING COMPANY, THE UNDERWRITER, AND THE INDUSTRY WAS.
THEY WANTED TO KNOW WHY LENDERS DON'T USE COMMON SENSE ANYMORE .   I ADMIT THAT  I GOT SUCKED FURTHER INTO THIS PANIC MODE. I CONSIDERED REFERRING THE FILE TO ANOTHER LENDER.   THEN I THOUGHT ABOUT THE LIFEGUARD QUOTE FROM YEARS AGO:
  ALL OF US WERE FIGHTING, KICKING AND FLAILING SO HARD THAT WE COULD NOT  CALMLY THINK OF A WAY TO REACH THE SURFACE. OUR ENERGY WAS TAPPED BECAUSE WE ALL SPENT COMPLAINING, KICKING,  AND FIGHTING LOSING BATTLES.  ALL WE REALLY HAD TO DO WAS STOP TO THINK HOW WE COULD CALM DOWN, GATHER OURSELVES, AND USE OUR KNOWLEDGE AND EXPERIENCE TO SWIM OR GLIDE OUR WAY TO THE SURFACE.  WHAT ENSUED WAS THAT ALL PARTIES INVOLVED, INCLUDING ME, CALMLY CAME UP WITH A SOLUTION TO MAKE OUR WAY TO THE SURFACE AND KEEP THE TRANSACTION FROM "DROWNING".  AS MUCH AS IT HURT THE CLIENT'S PRIDE, HIS PARENTS ENDED UP CO-SIGNING.  THE TRANSACTION MADE IT TO THE SURFACE OF THE WATER, GOT SAFELY TO SHORE. END RESULT: A CLOSED LOAN AND A NEW HOME FOR THE CLIENT.

MORAL OF THE STORY:  
ALL OF US, NO MATTER HOW SMART, SKILLED, AND EDUCATED WE ARE (INCLUDING CLIENTS), WE HAVE ALL "WIPED OUT" SOMETIME IN OUR REAL ESTATE CAREERS. SOME OF THE
TRANSACTIONS MAY HAVE DROWNED OR COME SO CLOSE TO DROWNING WHEN, IN ACTUALITY, IT COULD HAVE BEEN AVOIDED. ALL WE WOULD HAVE NEEDED TO DO IS GATHER OURSELVES,
STAY CALM, AND USE OUR PROBLEM SOLVING SKILLS INSTEAD OF UNNECESSARY ANGER.   THE FACT IS, SOME WAVES ROLL IN SMOOTHLY AND SOME OF THEM COME IN WITH FURIOUS INTENSITY.   :


IT IS HOW WE HANDLE THE INTENSE WAVES AND WIPE OUTS THAT MAKE THE DIFFERENCE BETWEEN US CLOSING OUR TRANSACTIONS, GETTING THE CLIENT IN THE HOME, AND HONESTLY KEEP US REALTORS AND MORTGAGE PROFESSIONALS IN THE BUSINESS.

 

THANK YOU FOR YOUR BUSINESS

Posted by

Paul W. Thompson

Home Mortgage Consultant

Comments(4)

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Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

WOW -- your story rings TRUE!  I am here today because I did not panic!!  While not a surfer, I used to swim in the Pacific Ocean years ago (in my youth).  My Mother always warned me about the "undertows" -- the deadly ripe tides.  Who listens to Mother?!?  As I was swimming out one day I was pulled under in seconds.  The ripe tide somersaulted me over and over again.  During this, I heard a still, small voice telling me "Don't panic."  I didn't.  I remained calm.  I don't know where that voice came from ... me??  I was only 17, not the age of caution and/or reason :-)  Once the somersaulting stopped and opening my eyes in salty water hurt I immediately accessed the situation -- I needed to get out of their -- the briny deep!!  But, I had to find out which was was up.  One direction was dark, the other was light.  I knew the light meant the Sun, and I dog-paddled up to the surface, I'd say about 20 ft.  My lungs were hurting so bad, a feeling I've never felt since.  I emerged filling my lungs up with air.  I headed back to the safety of the shore and I never swam in the Ocean again.  Too rich for my blood!  But I have used my own experience to "not panic" . . . that WILL take you under!!   VERY GOOD post Paul!!  SO truthful!!

Oct 29, 2011 08:07 AM
Paul W. Thompson
Homestreet Bank - Vancouver, WA
Going Above and Beyond...

Thanks for the compliment.  Are you here in Portland then?

Oct 29, 2011 08:11 AM
Paul W. Thompson
Homestreet Bank - Vancouver, WA
Going Above and Beyond...

I forgot to comment also.  Very compelling awesome story.  You are a testament to courage and staying calm, in our work and in life.  Thank God you survived.

Oct 29, 2011 08:13 AM
Faye Y. Taylor
StepStone Realty, LLC - Floresville, TX
Country Living with City Convenience -Wilson Co TX

Excellent post Paul.    Such wisdom.

Carla is a foundation of wisdom always.  That experience is part of what made her who she is today and as well as your friend's death is part of you.

I am in the prime of my life :-) and it has taken me many years to learn to assess the situation but even then I do not always respond correctly.  This made me think about a recent experience with an underwriter and how to handle in the future.  (I will just kill the underwriter -- problem solved--just joking  ;-)  ) 

Oct 29, 2011 08:32 AM