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When Know All Means Know Little

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

 

Somebody said that the worst customers to deal with are Real Estate agents and brokers. It is difficult to argue with it. Too many supporting examples…

It started, probably, 3 years ago. We watched what was happening in Marina Grande on the Halifax, these gorgeous two 25-story towers, which popped up on the Intracoastal at the peak of the market. And it nosedived…

Out of few units sold in South Tower belonged to a real estate broker, who was delinquent with her mortgage. We were doing several short sales in the building, and we knew the issues with selling there, and knew that we could handle it better than others, so we contacted the broker and suggested that we do a short sale.

She listened to me, and then said that her accountant told her that she did not need to do the short sale. She was not the only one who was coached by their tax people, and I knew that it was a lot of BS, so I asked her if it would be OK for our attorney to call her. I thought that knowledgeable attorney could explain it to her.

Sure. So the attorney called, and spoke to her at length. She said she would think, and did not call back. So the attorney at my request called again, and again went through the whole thing, and again she said she would think about it…

Last time I called her about 2 years ago. She was not [paying her mortgage, she was not paying her maintenance fee, and she still told me that she knows what she was doing, and that she did not need to do the short sale.

I got tired of trying to explain a broker what short sale means, so I told her that it is unfortunate, but one day she will have the foreclosure on her hands.

Today was that day. The Association foreclosed for non-payment of the association dues subject to first lien, which is another $375K. So, the broker does not have a unit any more, but the bank can still go after her, as she owes them money.

Can they collect? Maybe not. They might charge the debt off and sell the rights to collect it to the Collection agency, and they will be watching her for 4 years (Statute of limitations). Her credit is effectively shot…

This is by far not the only example of brokers and agents acting like they have no idea of Real Estate, he field they are licensed in.

MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

So true, it's as if "I know it all so I can't learn anything."

Feb 27, 2013 04:05 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

I don't know Jon.  It sounds like she has a strategy that is working.  She's lived cost free for a couple of years.  That just may have been her goal.

Eventually, she'll probably liquidate.

Just because she's not taking your advice, doesn't mean that her decisions are so bad for her. 

I wonder how many are in her prediciment in those buildings?? 

Feb 27, 2013 06:52 PM
Brian Rayl
Home Value Leads - Highland Park, TX
Active Agent and Co-founder Of Home Value Leads

Lenn may be right. Maybe her goal was to live rent and mortgage free for a couple of years? If so, she certainly succeeded in doing that. How much in savings did she pocket by doing it? Besides, she'll be able to buy again in 3 years. 

(This comment was meant to be in a sarcastic tone... I'm absolutely not condoning what this person did, if it was indeed planned this way)

Feb 27, 2013 08:33 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Lenn - she might had her reasons, but it was not because of free living. She did not live there a single day, it was investment.

Feb 27, 2013 10:54 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Reading the comments, I now understand that I missed on key thing. No, she did not live a day in the unit and she has not rented it ever. She bought it as investement, and, unlike so many others, she actually closed and did not refuse to close, what overwhelming majority did.

Of course, I can't exclude that she had reasons, but after spending so much time with her on the phone, I can only say that I highly doubt it. She was simply very stubborn, and kept saying that they will not foreclose on her, and they banks are idiots, and that she knew how to deal with them, and that they will beg her to accept better arangements, where they would forgive her mortgage...

It was that BS that we quite often hear from regular folks. The only difference that here we dealt with person, who was licensed, and who still was active.

Feb 27, 2013 10:59 PM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

I'm with Lenn in that she was probably playing the angles. Or, at least she thought she was playing it. But in the end, she's got a foreclosure on her record. Some people are also incredibly stubborn, agents or not.

Feb 28, 2013 03:15 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Your last statment is right on the money. And, actually, this is what puzzled me in this case. you have your angles, fine. WHat are they? She couldn't and didn't state anything, she was stubbornly kept saying that nothing would happen to her.

The funny thing is that all her accountant told her was that there was no problem for her in terms that he would be able to write off, so that she would not be faced with paying them off, but this would be if she would do short sale.

 

 

Feb 28, 2013 06:49 AM