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What do you mean, you're getting a divorce?!? How I survived an 11th hour crisis and sold my house.

It was 11pm when the call came, a time when any phone call is bound to be bad news. "Deb? It's Betsy. Oh God. I'm so sorry."

The voice on the other end of the line was trembling and clotted with tears. Betsy and her husband had agreed to buy my house --my personal home, a McMansion in the suburbs of Indianapolis. We were under contract. Closing was two weeks away. After staging it to perfection, I'd received her offer in only nine days, even in the midst of a tanking market.

I knew it had to be too good to be true.

 "Sorry about what?" I asked, my heart already sinking.

"It's my husband," she said, pausing to blow her nose.  "He...he wants a divorce! We're not going to be able to buy your house after all." She was bawling now.

I  empathized with her, talked to her as a friend, told her everything would be okay, one way or the other. But I also told her, calmly, that she was under contract and I had every confidence that we'd proceed to closing. I recommended a good marriage counselor. Then I called my attorney.

I couldn't possibly put the house back on the market. It was no longer staged to sparkle, it was poised to move. Boxes were everywhere. The vignettes I'd carefully crafted around the house and out in the yard were dismantled in favor of real life concerns. Above all, I had a contract and, even under these apparently untenable circumstances, I had every intention of moving forward. With the sale. With my life.

My attorney sent a letter reminding the buyers that they had signed an agreement and were indeed under every obligation to fulfill it, divorce or not. The next few weeks were nail-biters as I waited to see whether they'd push back and pull out of the deal. Nervewracking. I know that some couples will buy a house when the relationship is struggling, in the same way others will have a child, or adopt a new pet. Maybe that was the case for Betsy.

If nothing else, the experience put me in a good position to help others interested in Indianapolis real estate. I learned that a crisis doesn't mean the end of a deal. I learned that you can be empathic without shifting course.

Bottom line, I sold my house.  Betsy called a few weeks later to say that her husband had moved to the basement while they "worked it out."  And they did work it out. Two years later they're still together and my guess is that their relationship is no better or worse than most these days.

Who knows, maybe by holding them to the contract I saved their marriage.

Do you have an 11th hour crisis to share? How did you handle it? What did you learn from it?

 

Posted by

The Beacon Group of Keller Williams believes that home ownership is a positive force for social good. And there's nothing like having a home of your own.

Call or text us today. Let's go househunting!  (812) 361-8302.

Rodney Mason, VP of Mtg Lending
Guaranteed Rate NMLS# 2611 - Atlanta, GA
AL,AR,AZ,CA,CO,FL,GA,IN,MI,MS,NC,NV,SC,TN,TX,VA,WA

Ive only had that happen once and that was earlier this year on an REO.  They decided to divorce about 2 weeks after going under contract.  They backed out of it and of course, lost their earnest money.

Nov 05, 2011 07:37 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I understand divorce is down in this country because people are to broke to divorce.  May struggles are good for a marraige.

Nov 05, 2011 07:56 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Nope, can't say I can beat this one .....

Nov 05, 2011 08:31 AM
Lucien Vaillancourt
Native Sun Realty, Inc. - Jacksonville, FL
Jacksonville Florida Real Estate

Wow.  That was a close one.  Maybe the fact that they were held to their contract helped them work out their marriage problems.  If you would have caved they may not be together today. 

Nov 05, 2011 10:48 AM
Holly Weatherwax
Associate Broker, Momentum Realty - Reston, VA
A Great Real Estate Experience

Congratulations on getting this resolution. It sounds like it worked out for everyone.

You beat every story of mine--hands down.

Are you still friends?

Nov 05, 2011 10:56 AM
Kate Akerly
Kaminsky Group - Manhattan Beach, CA
Manhattan Beach Residential Sales

My guess is that you are in a market like NYC that requires large earnest money deposits (e.g. 10% here). I've been thankful many times for that because it really does hold deals together.  I've worked in other markets that generally have very low deposits and know all too well how easy it is for a buyer to walk away from $5 - $10k when the going gets rough on a deal.  I just had a deal that closed after 6 months in contract (Dept. of Building issues).  The only thing that got that deal to the closing table was the $200,000 earnest moeny deposit collected at contract signing.  

Nov 05, 2011 10:57 AM
Yvonne Van Camp REALTOR
To Buy and Sell Real Estate, see me at Southwest Missouri Realty - Springfield, MO
"Home"work, I have the Answers!

I love this blog!   I love your composure and how easy it was for you to stay on task.   I am amazed how easy it was to keep for you to keep them in the contract.

Nov 05, 2011 03:33 PM
Anonymous
Lavina Samtani

WOW! All I can say is God works in Mysterius ways!

Kudos to you!

Lesson well learnt for us who would have just given up out of sympathy/pity!

Nov 05, 2011 05:28 PM
#54
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Great post.  That is why instead of being real estate "consultants" we should call ourselves "counselors"

Nov 06, 2011 01:07 AM
Phil Porter
Charter One Realty - Hilton Head Island, SC

I'm with the Akerly Team above. Usually in our market it is the earnest money that keeps people at the table. Obviously, you could sue the buyers for performance, but that can be a long drawn out thing. We advise most sellers to take the earnest money (sometimes not even that) in order to get the house back on the market and find another buyer instead of wrapping it up in the legal process.

Also from the post it almost sounds like Betsy is a close, personal friend - would make this situation doubly difficult.

Nov 07, 2011 02:34 AM
The Indy Beacon Group of Keller Williams Indianapolis Real Estate
Indianapolis, IN

Wow! Thanks everybody for your amazing responses! This was my first-ever post - I'm brand new - my partner and just launched our business after a lifetime of buying and selling our many personal properties, managing our rental homes, and--above all--being passionate about the enterprise of real estate and home ownership.

Like AR expresses so eloquently in our weltanschauung, we truly believe home ownership is a positive force for social good. I couldn't have said it better! I am so grateful for the support and cameraderie of ActiveRain.  And by the way, we love referrals so please think of Team Beacon of Keller Williams if you're referring anyone in Indianapolis! 812.361.8302.

So.. a few responses. Phil (and Holly!) actually, I didn't know this woman at all, but I can see why you'd think we'd be close friends given that she poured her heart out to me and I even recommended a marriage counselor! In retrospect I'm glad she called me when she did, otherwise I might never known what was about to come down!

Bob: Thanks! True.  Hmmm... maybe there's a new kind of marriage counseling technique in all this: Tough It Out!

Lavina: I'm actually a real softy. I hate to see anyone suffer, and do whatever I can to help, whether I know them or not. In this case, the idea of losing the deal was simply untenable. An enormous amount of time, money and work went into the staging. I was already in contract on the house I was buying. The place was in total disarray -- in no shape for showing-- and I had no prospects knocking on my door. It would have been disastrous to lose these buyers. I had to do whatever I possibly could to hold them to the contract.

Akerly Team: Actually, I'm in Indiana! The idea of a $200K earnest deposit sounds extremely attractive, however! :)

Lucien, Jennifer, John, Kimo and Gene: Yeah - this struggle probably did help keep them together.  It's interesting to think that more people are sticking together because of the economy.  It would be helpful to know how many actually work through their issues because of that.

Doug: I totally agree. Once it's over, it's over. But maybe it wasn't completely over for them after all...?

Mary: Wow. I couldn't agree more. That's what I love about real estate -you're involved in one of the most significant events in a person's life - like being a childbirth coach, or a wedding planner. It's really an honor to accompany someone on this part of their journey and sometimes we need to be moms too. Glad I've raised two kids already - THAT'S a skill set that should come in very handy!!

Richie: And that basement was a rather nice one, if I may say so myself! Full bathroom, walk out to a landscaped yard...lol...sounds like I'm selling my house again!

Gabe: Thanks!!

Ellie: Yep, the experience taught me a lot about "relaxing" and I'm sure I'll be putting that experience to good use when I deal with my own sellers. Great point!

Karen, Sandy, Michelle: Thanks for your comments! I'm so glad this nail-biter is well in the past.

Ed: I am really glad I was dealing with a squabbling couple instead of a widow...I can't imagine attempting to move forward under those circumstances. That would have been awful and sad. Thanks for the comment!

Sylvia: So true. I think I'm still in favor of an easy escape hatch for people who are truly miserable...

Cheryl: Yeah - sometimes my head didn't feel too level but somehow we made it to the table! Thanks for the great comment!

Fernando: LOL! Actually, there were times when I thought to myself: This is reality TV without the camera crew! I'm just glad we all survived.

Rosalie: I couldn't agree more. Thanks for the comment!! Hope you had a great weekend. Happy Monday!

Sharon: I do think that in the midst of their marital turmoil it might have really helped to have a stable presence, someone to say: even if you're going to toss your marriage contract to the wind,  it won't be as easy to get out of THIS deal!

Pamela: Thank you for the warm welcome. I am delighted to be here!

Benjamin Realty: Yep, in the end, it worked out great for everyone!

Kerry: Who knows? At the very least, they'd be living in Indiana's own version of Wisteria Lane (any Desperate Housewives fans out there?) and the drama will definitely keep their lives interesting!

Karen: Yes, I see what you mean. As I mentioned in an earlier response, the idea of cutting them loose was really not an option for me under the circumstances. I felt I had no choice but to remind them -- hey, this is a real contract, folks! We're not playing games here. If this situation happens with a client in the same situation I'd been in, I'd help them stand firm. Thanks for your wise insight!

Ruthmarie: Thanks! Hey, are those your dogs? They're beautiful!

Elizabeth: Yep, cojones of steel! Snookered in Kokomo?!? Oh no! Well, let me know if you need any help in Indianapolis. We are a snooker-free zone!

Lisa: Thanks for the comment! Actually, we were never friends to begin with. She was a stranger to me -- until she called me, crying her eyes out and confessing her marital issues! I couldn't help but reach out to her, as anyone would have, I'm sure.

Steven: Thanks for the nice welcome! I'm thrilled to be here.

Ellen: Yes, you never know. I'm always open to that whole destiny thing! :) Have a great week!

Aida and Kristin:  Thank you!! I'm really excited about my first post and all the fantastic comments I've gotten back. YOU GUYS ROCK.

Amy: I wish I had some advice for dealing with short sales. Now, THAT takes nerves of steel. And talk about misnomers...

Kevin: Thanks! I am SOOOOOOOOOO glad to have sold it - at my asking price in a horrible market! TG for staging!

Kristi Knutson: THANK YOU!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

Tammie: I will never know for sure if they considered me a bad guy - I didn't hear any feedback and actually did wind up visiting the house after the sale. The buyer seemed happy to see me and show me the changes she made to the kitchen. I met the kids and the dog... so, I guess there were no hard feelings after all!

Kristine: Yes. This was one of those situations where you REALLY appreciate the existence of attorneys, all those awful lawyer jokes aside!

Garrigus. Thanks for the re-post! Much appreciated!!! And thanks for the kind comments!

Cindy: It wasn't as tough a call as you'd think just because I felt as if I had no choice (for all the reasons I mentioned earlier.) But I do thank my lucky stars that it ended the way it did. Thanks for the comment!!

Liz and Bill: Thanks for the welcome! I'm excited to be here!

Bob, Christine and Kristin: Thanks for the comment! At the time I was so engrossed in getting through it that I didn't realize just how lucky we were to get to the table with these buyers. So glad it's over. WHEW!

Dee: I'm glad they're still together too - especially because they have young kids!

Jeanna: Thanks for the great comment! I'm so glad that episode is over and had a good outcome for everyone involved. So relieved... :)

Alan: Yikes indeed!!

Ben: Me too. Have a great week!

 

 

 

Nov 07, 2011 04:02 AM
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Deb:

What an awful situation.  You did a good job holding the sale together and, maybe as you say, you may have saved a marriage.

Nov 07, 2011 04:27 AM
Dawn A Fabiszak
Private Label Realty ( Denver metro area, Colorado - Aurora, CO
The Dawn of a New Real Estate Experience!

Those 11th hour situations can really be scary.  You were lucky on this one.  If they had filed divorce they may not have been able to qualify for their loan and the contract would have ended.  They may have lost their earnest money though.  That happened to me about 16 years ago.

Nov 07, 2011 11:56 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Deb:  What an incredible story.  I love the way you wrote about it, as well.  It is so great that things worked out on both fronts... selling your home, and the buyers ending up getting back together.  I mean... talk about happy ending ??  <smile>

Now... I see this is your FIRST post... so... Welcome to Active Rain.  You have created quite a splash for yourself.  Not only did you write a great post, but you first post also got Featured... and got a Gold Star.  Way to go, Deb !

Active Rain is a great place to be... and if you can bring yourself to write blog posts on a consistent basis... perhaps one post every few days... Active Rain can be a great way to grow your business.

Again... congratulations on a great first post... and again... Welcome to Active Rain !  I am glad you're here.

 

Nov 07, 2011 01:03 PM
Mary Abella
a little bit of red Interior RE-design LLC - Indianapolis, IN
creating magic on a regular basis.

While we were looking for a new home in Indianapolis nine years ago, our Realtor received a phone call that broke her heart. The deal on her client's home had just fallen through the day before closing. The elderly couple had moved all their furniture out except for two lawn chairs and probably some blankets and pillows. The power had been turned off, and they were sitting in the dusk in the lawn chairs, wondering what they were going to do now. Even if they got their earnest money back, their lives were pretty much turned upside down. And it turned out the buyer's agent knew it might not happen. People I've asked said he couldn't legally say anything, but I can't believe that ethically something could not have been done to prevent this tragic situation.

Nov 07, 2011 02:19 PM
The Indy Beacon Group of Keller Williams Indianapolis Real Estate
Indianapolis, IN

Evelyn - Thanks! In retrospect it's a miracle I held anything together back then - I was on pins and needles!

Dawn: What a great point! I hadn't even thought of that (and glad I hadn't - it would have been one more thing to keep me up at night!)

Karen Anne: Thank you so much! Yep, it's my first ever post and I am so happy because it gave me the chance to meet so many great folks who have commented. What a great group of people! I'm going to keep blogging for sure. Thanks for the tip!

Mary: That is the saddest story! The idea of those two elderly people sitting on their lawn chairs... so sad! BTW, are you a Starfish Mentor? Your name looks familiar!

Nov 08, 2011 12:23 AM
Joy Carter & Jeff Booker Brother and Sister Team
Keller Williams Parkland/Coral Springs Realty-GreatFloridaHomes Team - Coral Springs, FL
Trust Your Family's Move To Our Expertise!

Every other deal is FILLED with CRISIS...I absolutely feel like a Crisis counselor in this job.  My brother/partner is the best person for handling these and bringing everyone back to an even keel.  I'm too high strung for it.  He should have been a professional mediator!  I'm lucky we are partners and family!  Joy

Nov 08, 2011 01:57 AM
Beverly of Bev & Bob Meaux
Keller Williams Suburban Realty - West Orange, NJ
Where Buying & Selling Works

It's  good to see everything worked out for all involved. It's hard to remain calm when it's your home.

Nov 10, 2011 10:08 AM
Winston Heverly
Coldwell Banker Access Realty - South Macon, GA
GRI, ABR, SFR, CDPE, CIAS, PA

Usually the 11th hour seems to be the whole transaction in some cases. I'm  glad for you that it survived the closing. My guess is if something happens in the future, you will be the first to help.

Dec 30, 2011 01:35 PM
Sylvie Stuart
Realty One Group Mountain Desert 928-600-2765 - Flagstaff, AZ
Home Buying, Home Selling and Investment - Flagsta
Wow, very interesting scenario and it probably did force them to try harder to work it out, so that was a happy ending! Win-win!
Jan 31, 2012 11:48 AM