Thanksgiving 2010

It's early morning the day before Thanksgiving. Here I sit in my office, contemplating the best way to make the next move on getting the short sale files I'm working on closer to the desired completion. Today I find myself abundantly aware of how many lives are in limbo as we wait for the bank's approval. We have done everything we can and we should have received our approval by now, long before now, but we wait. Last week one of the bank's negotiators was out due to illness - there are some really unpleasant "bugs" going around right now - but for us, we feel frustrated almost beyond reason that here we sit another week with no approval. The sellers are needing to move forward into the rental we have helped arrange for them, their four children and their beloved family pet. Last night we spoke just to give them the update of the moment and I learned they were on their way out to get their turkey for tomorrow. We anticipate the short sale approval either today or next week, with their move to their lovely rental home sometime the first week of December. Are you following the timeline? So, with work, life, four children, an unresolved short sale, an impending move, and turkey to prepare for Thanksgiving in a home that is partially packed up and ready to move, this amazing family still had the time to congenially talk with me, allowing me to give them the update...even though it was not the report I know they wanted. I know when they saw my name come up on their caller i.d. their heart skipped a beat, wondering if I was calling with the bank approval. The bank has declined 3 other really good offers on this same property, and finally on the last one when they gave their approval, the buyer had gotten tired of waiting so they walked. Does this seller client of mine have reason to be pushed nearly to their limit? Yes indeed! But they keep hanging in there and have been model citizens, doing every single thing I've asked of them in record time so we can be totally responsive to the bank providing any information they ever request. So why have I launched into this tale today, the day before Thanksgiving?  It is this family and all the others like them with whom I have had the opportunity to work this past year I'm feeling particularly thankful for on this day before Thanksgiving. I am thankful for the opportunity to work with them, to help them in a time they did not anticipate when they first bought the home they thought was going to be their family home for a good long time. Then, the economy of the past few years, medical bills, and other issues previously unexpected came about in their lives and they found themselves in good company with the millions of other homeowners who found themselves upside down, financially in trouble, and needing to find their way out from under the mess of things. Another agent I spoke with the other day told me she was not going to get involved in these short sales because they are a headache. Are you kidding me? I tried to respond in a calm and unaffected manner but inside all I could think was 1) since short sales and foreclosures are a huge percentage of our business at the current time why would you not want to be working where the most business is if you are a career Realtor and 2) some of us have prepared our whole career to be savvy enough to be able to help people navigate through this mess of a market. Now is when some of us get to do what we do best - get people where they need to be and away from where they do not. So, yes, short sales are a headache for everyone, and yes, I am profoundly grateful for every person who has permitted me the honor of being a part of their process in extricating them from a messy, encumbered life, into a more peace-filled and hopefully joy-filled life where every time the phone rings they are not afraid to answer it for fear of it being their banker threatening foreclosure, or a bill collector trying to get that last pound of flesh. I am also thankful to still be standing. This market has done many of my fellow real estate professionals in, helping them along to realize their greater good in another field. I've done this a long time and am grateful to still be able to be doing what I do the way I do it. Besides, after all these years as a real estate broker I guess I would be hard pressed to retrain myself for a new adventure. Time will tell, but for now, here I am. Kay Russell, your Realtor, your short sale "go to" gal, your advocate, and greatest supporter. Sending wishes to all I know and to those I look forward to knowing for a grateful, joy-filled Thanksgiving.

Baby Hummingbird Rescued

Need to take a moment to view a "feel good" video? Click on this. Amazing how this guy nurtures this tiny hummingbird back to wellness after being attacked. This really is sweet, good music, too. I'd like to think that just as this guy reached out to help this little hummingbird, so would we each reach out to help one another when we need it most. Anyway, enjoy!

http://www.wimp.com/babyhummingbird/

Short Sale Thoughts or Kay's Short Sale Rant of the Day

I seem to spend an inordinate amount of time on the phone talking with my seller clients who are going the Short Sale route trying to give them comfort in the process, offer them some tiny amount of hope that all will be well. The seller client may be different from call to call, but the conversation is nearly always the same.  Even though my Short Sale Negotiation Team is top notch, and I really mean that - they are amazing, it still takes heroic efforts on everyones' part to get these Short Sales done. What is the biggest stumbling stone? The banks. We submit detailed market analyses on all the properties, really hone in as if by crystal ball to give an insightful and accurate property value in this crazy market we have been "enjoying" the past few years. Then, the bank orders a BPO (broker price opinion) which sometimes is done "spot on" but many times we are seeing the BPOs come in at some blue sky high value that just is not going to happen in this market and the bank counters any current offer with some crazy high number. Buyer walks. We start over again. We get another contract, submit it to the bank. Bank takes their sweet time (ok, I acknowledge they are over burdened with files on a bazillion properties that are trying to go Short Sale to avoid Foreclosure) but seriously, we are waiting months, in far too many cases, for a response sometimes. I thought that was supposed to be speeding up. Hmm. Did I hear something about the government issued an edict that turnaround time on these files was supposed to speed up? OK, I'll not launch that argumentative grenade for now...by the time we finally get a response from the bank, many times the buyer has moved on since not everyone can put their lives on hold forever. Yes, the banks are in a very bad spot (no, we are not going to go down that line of conversation right now either, because this is one area just about everyone seems to already be in agreement on - let's sum it up to say we are all frustrated with the whole mess). I've been doing these Short Sales long enough now, with my team of expert negotiators, who by the way have taught me so much just interacting with them, that I really do "get" the process, the flow of things, the rhythm (actually sometimes in the lack of rhythm or a disjointed rhythm you can find a certain flow which may seem to the dear one who is sitting around waiting for some good news, any good news, like nothing is happening but those of us inside the transaction know things are happening albeit in a jagged, walking on shards of glass kind of experience, but things are happening) and all the while to our treasured clients (I'm very serious here - if anyone does not believe I treasure my clients then they have just not spent the time to get to know me or have not been paying attention) it feels like they have been abandoned by the world, well certainly by their lender. Why we all did not see this chaotic market coming I don't know. When you look at the history of it all, and think back on taking out a 100% mortgage and also running a home equity loan up to the max, we might have considered that it might not have been the best plan but with the appreciation we were experiencing, the prospect of being able to make money while providing a roof over your head, well, it's pretty powerful stuff.

As a seller, when you are going short sale: "It is what it is" can become your friendly mantra to help you through many of the situations that will arise in the process. If you are working with an agent who is committed to the process and to your best interest, is experienced in successfully closing short sales, has a brilliant negotiator on the team who is tenacious under all circumstances, then you are on the right path. Remember, no one has much influence over your bank. The bank is going to do what the bank is going to do but a great team can help usher the process along in a better direction for you. We are your advocates. Some experiences with banks are actually pretty good. They really do work with you and have responsive file managers on their end who function from a point of reality (big cheers for those).

If that is not your situation, and you have drawn the lot of the file manager who just does not seem to get it, then it's absolutely imperative you have an agent on your side and a great short sale negotiating team to work on your behalf. Besides, you have no idea how important it is to have your agent be able to decipher what all is going on and to tell you when it's really time to panic. Face it, a seller going through the Short Sale process usually feels pretty panic stricken the whole way through. Granted, it's not as much fun as going hand in hand down to Dairy Queen but there are times in a Short Sale transaction when the most important thing to do is to do nothing, to be patient even when it does not seem to make sense. A good agent will be able to tell you when those times are. A good agent will also be able to tell you when it's time to panic.

Also, remember that these Short Sales are time intensive on the part of your agent and their team. Most usually we end up doing about 3-4 times the amount of work in time and effort than on a regular transaction so if you call your agent and they just seem like they don't have time to chit chat - well, they don't. Every minute they are on the phone with you is one more minute they are not able to be pushing to get the bank to respond appropriately. Does that sound cold? I sure don't mean for it to, but in the context of this conversation and subject, let's be realistic. We are trying to fight for your ability to walk away from this as a whole person with the hope of restoring credit in a reasonable time and manner. This is crunch time people. Let's be honest about that. Nothing gives me greater pleasure than getting the short sale closed with my seller client walking away, no deficiency judgment, and able to start life fresh. Now that's when my sellers and I are ready and able to settle down for some fun moments together. That's when we can take time to smell the roses. Granted, there is an appropriate amount of consultation that needs to happen between listing agent and short sale seller client, but if you can possibly accept the fact that these banks move slowly and whatever you spoke with your agent about yesterday is not likely going to change overnight or even in days. The ideal arrangement for all parties is for the seller to find some way to remain calm and not panic over the seeming lack of activity (trust me, if your agent is really good at this there's plenty of activity - it's like the duck swimming on the water where it looks really smooth on the surface but underneath that duck is paddling like crazy) and just find a way to come to grips with the reality that you will be getting an email update every week letting you know where the bank is at in their process...or where they are not yet at, which is more often the case. Of course, the human relations aspect of things welcome a real live phone call between you and your agent maybe once a week or every other week unless there is something specific to address. However, let's manage expectations. For you to call your agent and expect that they are, as if by magic, going to be able to predict what the bank will be deciding and when they will make a decision is simply frustrating for you as a seller (because that agent is not honestly going to be able to predict anything the bank is going to do) and it is going to simply add to the potential feeling of hopelessness most Short Sale sellers experience. Then, there is the emotion of anger - "How did this happen to me?!" That is perhaps the most common one I help people through, or at least let them talk themselves through. Just remember, there is a light at the end of the tunnel and it is not a train....well, almost never is it a train. I've had some pretty challenging situations which my team and I have successfully gotten our seller clients through. I've got one right now that is challenging me to my core and if I could come face to face with the bank file manager on this one it would take everything I have to keep it civil, but I still think we're going to get it done for my seller clients.  If the buyer will just be patient on this one just a few more days I really truly think we'll get this one done, even though several times I've almost had to get out the paddles (you know, like on the tv hospital shows when they scream "CLEAR!" and zap the patient with the paddles trying to revive him).

One thing is certain in this market. As you stand in line at the grocery store, or in your work place with your colleagues, wherever you find yourself standing, stop a moment, take a breath, and just look around. I can assure you, you have no idea what the person next to you or across the room from you is going through right now, but I can almost guarantee that they are going through something. Something full of pain and confusion. Just about everyone I have encountered these past few years has a tortured night of the soul type of story about their own life experience now or in the past few years. So, when someone is snappy with you, or is not giving you what you think you need in this new moment to find that joy everyone is seeking, just remember this. It does not seem to matter how much money they have (or had) or how little, this market has touched every strata. The angriest, most frustrated person who is acting out right before your very eyes may well have just learned that their third short sale buyer has "walked" because the bank took so long to respond, or else the bank countered a perfectly correct offer price (based on market value) with some pie in the sky price that no appraiser could actually prove (another time we'll talk about drive-by BPOs - yeah, you people in the industry know just what I'm talking about - grrrr) and now this homeowner is yet one step closer to foreclosure.

Thanks for taking this ride with me while I rant. For all my short sale fellow warriors, be you agent, client, or the dear one who is just realizing the fear that is welling up in their gut telling them they may not be able to keep their house, hold the hope that tomorrow there is a brighter day because usually there is. Remember I am here, doing what I do, every day, ready to help guide you, encourage you, and instantly able to seek guidance from people way smarter than me when I run into some new thing that I just don't know how to solve myself. We are all surrounded by amazing resources. With my length and depth of experience in the real estate industry I have built quite a support infrastructure, and when I moved over to Keller Williams Realty I was surprised to learn how many additional resources became available to me. Did you know Keller Williams is the third largest real estate company in the USA? Seriously. I had no idea. I guess I'd just been too busy doing business and living life to keep track of that sort of thing. It is mentioned now simply because I am grateful to be in such a supportive, inspiring company which instills a high level of excellence in all things. Speaking of which, it's time to sign off for now as I get about the business of doing excellent work today. You bank short sale negotiators out there, after a good night's rest I'm back at it this morning, as is my team, and we're coming back to you at full force. My sellers? Hang in there. As ever, I'm at work this new day. Let's get good work done. Next time I'll talk about buyers who are buying short sales. Now that's a whole other layer of counseling involved in that process.

Have a great day - you deserve it! And remember, if you want to jot me a note, feel free. If you want to keep it private, just email me at russellgroup1@yahoo.com.

5 Foreclosure Myths - BUSTED!

Here is the link to a blog that gives some good information about FORECLOSURE MYTHS. Foreclosure is either an active topic or a topic that is being avoided as if to not discuss or think about it, then it will not come knocking on your door. Check this out. For many, this offers good news. Enjoy this "read" and now I'm heading out into the day, working on getting 5 Short Sales done, hoping to help these families avoid foreclosure. If you are facing foreclosure, or are worried about the reality of where you are at, give me a call or shoot me an email. No fear. It is what it is and we can work through it together.

5 MORE Foreclosure Myths - BUSTED!