Circle of business & the meaning of hardship

By
Real Estate Agent

Greetings to everyone reading at Active Rain!  I wanted to share some info on how the Active Rain community can generate business and help people.  Marcy Moyer is on Active Rain and has a relationship with my mentor/fellow agent Chris Ann, who put me on to Active Rain several weeks ago.  Marcy has a client who lives on the West Coast but owns a place in Montgomery County Maryland that he wants to short sell.  Marcy spoke with Chris Ann who told her to contact me to do the short sale for the client.  I actually own a house in close proximity to the clients property in Maryland!  Marcy gave me the client's info and I called him and now need to list his place.  So that is a great example of how all of us can use our ears and eyes and our current relationships to create other business relationships that, in the end, help the client. soThe client will then be glad that they knew us!!  So special shout out to Chris Ann and Marcy, we will be in touch very soon if you are reading!

So on to the short sale.  The client has moved to the other side of the country for work. He is underwater pretty substantially in his investment property, the one that I am listing.  There is a tenant in there who is my client's friend and he is very helpful so far. The question is, is there true hardship with my client?  The client is pretty successul, he owns a house on the west coast and has a good job. He actually can afford the mortgage on his investment property but he feels as if it is a bad investment (which it is), and he is tired of putting any money into it and trying to maintain it from the west coast.  He tried to do a refinance through a special program but it wasn't approved/he wasn't eligible.  Mortgages payments that were locked in several years ago surpass going rent rates in the area. So investment property owners are losing money every month. And that is not what they are in the business of doing.

So we are going to short sale and I believe you need confidence knowing that you are going to get the approval no matter what.  The hardship in this case is his move for work (he was forced to keep the property).  He couldn't sell the property when he moved to the west coast so he has tried to maintain it. It is underwater, he won't make any money off of it and he is tired of throwing his money away when he could be saving/using it for his family and tuition.  We can sell the house for pretty close to market value and the bank would save 20% versus doing the whole foreclosure thing.  Does my client stop paying mortgage at this point? He has made the decision to short sale.  Ha, that is a whole different story...Have a great day!

Seth

Comments (4)

John Wingate
EXIT Shore Realty - Salisbury, MD
Salisbury MD Real Estate, 302.339.5185, Salisbury, MD Homes

Welcome to activerain!

Activerain is a great way to network and I joined about 6 weeks ago and I love it!

Nov 22, 2011 12:23 AM
Delores Campbell
Keller Williams Realty - Chesterfield - Wildwood, MO
Your St. Louis Real Estate Resource

I would never advise my client to stop paying their mortgage.  They should consult with an attorney.  Is it the banks fault that this was a "bad investment?"  If he can afford his monthly mortgage, I don't think the bank will consider this a hardship.  Good luck.

Nov 22, 2011 12:50 AM
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

See what a wonderful place this is!  You'll be very glad you accepted my invitation to join.  Good luck with the sale.  The owners are in great hands.

Nov 22, 2011 07:14 AM
Anonymous
Seth

Thanks Chris Ann and John!  I really appreciate Active Rain even if I can't go on there as much as I would like to! Thanks for your input Delores.  However, I never said that I advised my client to stop paying mortgage.  However, I stopped paying mortgage in March, when I was tired of throwing away $800 per month into my investment property. That was the difference in my rental income and mortgage.  In those 3 months that I stop paying, I did a loan modification and got a 2.5% for 5 years!  Glad I stopped paying or they wouldn't have taken me seriously!  Your other point about the hardship and paying mortgage - I got a short sale approved by GMAC for a girl who never had a late payment. Got it approved in 7 weeks and closed two weeks after.  The bank will accept short sales if they are faced with the alternative of foreclosure. I have cases to prove it.  So throw these facts into your mental rolodex Delores!!  I will reach out to you soon once I get this new short sale approved!!

Nov 23, 2011 01:55 AM
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