Avoiding foreclosure shouldn’t have cost you $575,000

By
Real Estate Broker/Owner with Respect Realty LLC 200311024

Photo courtesy of ginkgo2How bad do you want to avoid foreclosure? What do you think it should cost you? Right now, you are just in default and may only have had the home a few years and don't have any equity, but in other cases you may have owned the home for many years such as the person I'm about to tell you about.

Recently I called a person on the phone that was in default. They only had about 30 days until foreclosure to see if I could help them sell their home. I saw that they had owned the $600,000 home since 1979. I assumed they didn't owe much on the property.

I was correct. They didn't owe much on the property. They only owed $17,500, but they also owed taxes, electric, and gas and a few other liens on the property, totaling about $25,000 for all debt against the house.

I have to admit I thought, "Finally someone that I can really save from foreclosure and put some money in their pocket." That is when they told me that they had already sold the property. I said, "Great, that is awesome, when do you close?" They said, "We closed today and it was an all cash deal!"

"Nice, how much did you sell it for?" This is when I heard what shocked me and saddened me at the same time. "I sold it for just what was owed plus the liens and they even paid my closing costs for me." HUH? "You sold the house for $25,000?" "Yes, we did, but we won't have that foreclosure on our credit and now we can move on"

I am saddened to say, that the person has moved out and the neighbor now has a home that he bought for $26,478 from a neighbor who was in distress. The worst part about it was this person was excited to have been out of the debt and to not be getting any more phone calls, letters, or knocks on the door at 9pm. But, should you really throw away $575,000 to avoid foreclosure?

If you are in a situation and want some solid advice on avoiding foreclosure, please don't be afraid to ask. It may just save you from foreclosure and save you from throwing away $575,000.

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Rainmaker
95,713
Michael Sahlman
www.HomesForVIPs.com - Keller Williams Realty - Miami Beach, FL
e-PRO - Miami Beach Florida Luxury Homes

Incredible....that really happened? Wow..hard to believe that they would not have checked with an experienced attorney or realtor before then.

Jun 10, 2008 11:16 AM #27
Rainmaker
345,568
Dawn Maloney
RE/MAX Haven - Northeast Ohio Real Estate Specialist - Hudson, OH
330-990-4236 Hudson & Northeastern Ohio

People don't act right when they are panicked - I would advise them to contact an attorney muy pronto. I am also having the proxy server error and it's sooooo annoying.

Jun 10, 2008 01:07 PM #28
Rainer
139,927
Kelly Sibilsky
Licensed Through Referral Connection, LTD. - Lake Zurich, IL

Have they been living under a rock? Seriously, did they have absolutely no idea how much their house was worth? You have to wonder how someone could be taken advantage of like that. Most people have at least a rough idea of what their house is worth...

Jun 10, 2008 01:10 PM #29
Ambassador
1,109,717
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com

What a sad story.  The poor people lost so much money.  The neighbor sure took advantage of them.

Jun 10, 2008 01:37 PM #30
Rainmaker
137,737
Bonnie & Terry Westbrook
Westbrook Realty - Ada, MI
Grand Rapids MI Real Estate

Unfortunately stories like this aren't that unusual in today's market. We have had  sellers wait until all their options are gone before calling us for advice. If they had told us their situation before the deadline is almost up, we might have been able to help them.

This is sooo sad, Todd.

Jun 10, 2008 02:18 PM #31
Rainmaker
549,869
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker-Owner,CRS,CDPE,GRI,SRES, Brea,CA, Orange Co

Hi Todd,

Oh my gosh, I can't believe this happened. I've heard a lot of odd things going on this time around the down market, yet not anyone who fell for anything like this.

Jun 10, 2008 03:43 PM #32
Rainmaker
266,287
Dora & Vincent Kwok
HomeSmart Real Estate - Chandler, AZ
CNE - Chandler, Arizona Real Estate

Todd,

Sad story...the neighbor really took advantage of them.

 

Jun 10, 2008 05:12 PM #33
Rainer
122,167
Christy Powers
Keller Williams Coastal Area Partners - Pooler, GA
Pooler, Savannah Real Estate Agent

That really happened? I can not fathom it. I guess when you are being called all the time, the harassment starts to take a toll on you. I would imagine most people feel horrible for not being able to pay their bills.

Jun 10, 2008 05:27 PM #34
Rainmaker
362,173
Venancio Gonzalez
Windermere Kelso/Longview - Longview, WA
Longview WA Real Estate Broker - 360-751-4001

Todd - that is a very sad story and it is happening more than we realize. To prevent this very scenario, starting next Thursday (June 12) here in the state of Washington we'll have a new DISTRESSED PORPERTY LAW go into effect to protect home owner of being taking advantage of. Sad, sad, sad.

Jun 10, 2008 07:31 PM #35
Rainer
2,700
mls| CORE
NNEREN IDX provider - Alton, NH

Are you serious?... this is the worst foreclosure story I have ever heard...very, VERY sad.

Jun 10, 2008 09:04 PM #36
Rainer
106,264
Ricardo Bueno
Diverse Solutions - Los Angeles, CA

Broker Bryant took the words out of my mouth! I can't believe they settled for a price like that? Were they embarassed to ask? Or just impatient? I don't get it. Ask questions...it's natural! I know it's a tough time. But that's even more of a reason to ASK questions. I know you could've done more for them Todd...

Jun 10, 2008 10:18 PM #37
Rainmaker
3,017,034
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

 Oh yicks....we specialize in short sales and the stories you hear are just amazing and frightening. The only thing worse with this one would have been it a real estate agent had actually listed it for $30,000....and unfortunately, as we all know...there are probably some who would.

Jun 11, 2008 12:00 AM #38
Rainer
105,365
Mike Norvell Sr
Morris Williams Realty - Leesburg, FL
Norvell Consulting Group

I and Lenn cant be the only ones who see the obvious, representation by a good Realtor from the beginning would have made quite a difference....We are valuable, our services are valuable when people choose to takie advantage of what we can do for them.

Todd, nice story, but would it have been any less tragic for the bank to have taken the property back, as does happen quite a bit...I would check the facts a bit, and then run the story as a reason for people to use your services Todd    See ya

Jun 11, 2008 12:09 AM #39
Ambassador
2,081,659
Respect Realty LLC
Respect Realty LLC - Milwaukie, OR
Brokers - Oregon / SW Washington Real Estate

Wow, thank you everyone for visiting...Wasn't expecting this from this, but as an update. I will be visiting the house today and trying to get more of the story and maybe see if I can get these people to a real estate attorney.

Jun 11, 2008 02:47 AM #40
Rainer
26,463
Joyce Windschitl Hercules
Prime Mortgage - Chanhassen, MN
MN, FL, WI & CO Mortgage Consultant

This is the most incredible story of taking advantage of someone. 

Jun 11, 2008 04:20 AM #41
Ambassador
1,506,476
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Things that make you say .>WHAAAAAAAAAAAAAAAAAAAAAAAAAAAT?

Crazy story.  They were taken advantage of!

Jun 12, 2008 04:55 AM #42
Rainer
105,365
Mike Norvell Sr
Morris Williams Realty - Leesburg, FL
Norvell Consulting Group

I would love to hear how this turns out Todd

Jun 12, 2008 02:22 PM #43
Ambassador
2,081,659
Respect Realty LLC
Respect Realty LLC - Milwaukie, OR
Brokers - Oregon / SW Washington Real Estate

OK, I have the update everyone and it may surprise you!

Here is the link http://activerain.com/blogsview/556922/My-meeting-with-the

 

Todd Clark, Helping Families Home - www.IFoundYourNewHome.com

Jun 18, 2008 04:23 PM #44
Ambassador
2,081,659
Respect Realty LLC
Respect Realty LLC - Milwaukie, OR
Brokers - Oregon / SW Washington Real Estate

Joe - They did have possession of their senses and even a bigger possession of a heart!

Randy - The good news Randy, it turns out it shouldn't make you sick, they did it on purpose.

Mar 23, 2009 04:51 PM #47
Ambassador
2,081,659
Respect Realty LLC
Respect Realty LLC - Milwaukie, OR
Brokers - Oregon / SW Washington Real Estate

Patricia - That is what I thought until I met this seller with the biggest heart I have met in a very long time. He basically gave that home to the neighbor and friend of many years because he could not because he had to.

Vickie - The neighbor didn't approach the seller, the seller approached the buyer.

Mar 23, 2009 04:55 PM #48
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