Do I have to start all over After the Approved Short Sale deal dies?
The short answer….YES, WITH A TOUCH OF NO
KEEPING IN MIND THAT A SHORT SALE APPROVAL IS GENERALLY BASED ON A BUYER WITH A SPECIFIC NUMBER FOR A PERIOD OF TIME; SO IF THE DEAL DIES THEN PREPARE YOURSELF FOR ANOTHER JOURNEY AHEAD. AT OUR OFFICE WE PRACTICE THE 3 R’S WHICH IS TO REDUCE TILL YOU RECEIVE A NEW OFFER, RE-SUBMIT FOR A NEW APPROVAL AND REMEMBER BANKS ARE NOT THE SHARPEST KNIVES IN THE DRAWER. WHICH BRINGS ME TO THE HIDDEN 4TH R WHICH STANDS FOR RELAX! BECAUSE GETTING THEM TO UNDERSTAND WILL TAKE SOME PATIENCE
Now lets back track a little…
This question was asked by a new agent who has been working a file for about 5 months and still has no offer despite having the property approved by the lender a few months back.
Often times it is difficult for home owners to actually make the tough decision that they are in over their heads when it comes to their mortgages. A home is the biggest investment that most of us have and to see it all drift away can sometimes be very hard to accept.
Once home owners have come to terms with the situation; they usually reach out to a reputable Realtor who hopefully has knowledge on Short Sales and lists the property for sale on the MLS. Depending on how well it is priced it could take days, weeks or even months to secure an offer. Once received the Agent will forward the Short Sale packet to the lender for review and hopefully approval. The lender then does some preliminary things which includes a full review of the Sellers financial records, income documentation (if any), hardship letter etc…and they also order a BPO (Broker Price Opinion) to determine the properties true market value so they can gage the offer that has been presented. If the numbers make sense you should receive an approval notice from the lender which will give the Green light for the everyone involved that it is a solid deal that has the ability to actually close. But in many cases the buyer backs out before the actual approval arrives or the buyers decides that they are no longer interested in the property; no matter what happened, no matter the reason…the reality is the deal is dead
So now the Realtor/Sellers are stuck with an approved price and no buyer. The Sellers Agent then places the home back on the market as an approved short sale in hopes of securing a new purchaser…but what happens if no one comes right away?
I see homes on the market almost daily that are being marketed as an Approved Short Sale with a quick closing possible; now is that is really accurate information? if you received an approval from the lender in March can you safely say that the number still stands in September? I am sure it may with the bank, but how about potential buyers? How about the Market value today? I also see homes that were approved at one number and the list price is substantially less; for example: short sale approved for 150k, list price 99k…Wouldn’t this lead to attracting buyers that are looking for homes under 100k calling you only to be surprised later on? do you call this lead generating or misleading; what do you think?
In my business, I market homes until an offer is received and if that deals dies, my notation in the MLS reads “Short Sale was approved at list (or specific number) but further review will be needed upon securing a new offer” Lets be honest value in some towns change almost daily, so doesn’t that make it hard to determine the amount that the lender would accept? especially if time has lapsed and that approval date is long behind you? The way I see it no matter how you look at it; its back to the drawing board for this house.
So prepare yourself and your clients as well as cooperating agents that this short sale has made it to the promise land but has since returned and hopefully will be back there again reeal soon.
To all of my short sale agents…Keep up the GOOD fight!
The gift and the curse of the “Approved Short Sale”
As a Realtor that engages in a lot of Short Sale business, I find that there are so many things that are needed just to get to the finish line of a deal.
- You have to Meet with the client
- Go through the process
- Collect what will eventually become the Short Sale package
- List the property
- Market the property
- Secure a Buyer
- Contact the Lender
- Pray the buyer holds on
- Negotiate the deal
- Pray the buyer holds on
- Get it sold
Now if you are an agent that list Short Sales; you know I left out about 10,000 other things that are needed and done by any qualified Agent but come on y’all (this is a blog, not a book report)
. Anyways, It’s truly a passion that you must have because sometimes the pay just doesn’t match up to the amount of work that is needed in order to get it done. But for me, I find small successes in all that we accomplish and I find that there is no better feeling than knowing you helped someone avoid a FORECLOSURE.
A problem that I have and have seen; is that after months of fighting with the lenders, Agents lose the interested buyer and now have “The gift and the curse of the Approved Short Sale”. You are fresh off of a victory when you got it Approved but now the question is how “ Approved” is it? If you can secure a buyer quickly after losing the initial one and before the commitment expires you have a legitimate chance, but what if you don’t?
Is there a Doctor in the house!!!
I think I need a Medic after pondering the idea of having to start all over again….
I’ve seen listing active 60-120 days after a deal had died and it is being marketed as an approved short sale, so I ask again…how approved is it?? The bank will likely want to order a new BPO, and want updated financials from the seller, so in reality aren’t you starting the short sale process over again (in a weird, twisted, sorry I have to say this) kind of way. The fact remains that values change all the time so if you have a short sale and you lost the buyer and you have an approved number, you better hurry!! because time may be running out on you…
Just so you know; I am not saying that I disagree with the practice; in fact I have a listing right now that was approved about 40 days ago, and I am marketing the property with the title of Approved Short Sale, but as I question myself, I might as well discuss it with the masses….what do you think?
After a certain period of time, can a short sale still be considered APPROVED?
Need HELP?…Reach out to us
And we Will reach back
SO YOU ONLY WANT TO BUY IF YOU CAN NEGOTIATE THE SALE HUH? (let me think about that one)
As a New Jersey Short Sale Specialist I encounter so many home owners that are trying to hold on but
the rope is starting to break…
There is an abundance of information out there and home owners are uncertain on which way they should turn
If you list and sell a lot of Short Sale Listings like I do; then you may have been approached by these New Age investors who want to purchase your listings but ONLY if they can negotiate with the bank directly. I personally have mixed feelings about this practice; they promise a full 6% commission to the broker with a pledge
to do whats best for the home owner, but I am not sure if I am buying that. First off in almost every transaction that involves Real Estate; you have two constants…
Number 1: The Buyer wants to pay as little as possible for the house 
Number 2: The Seller wants to make the most money possible on the sale.
So the question remains; if the buyer is negotiating on behalf of the seller; is there a middle ground??
I have been contacted by several vendors promoting their services and I question how could this be done where it favors all parties? For starters if a home owner is facing foreclosure; whatever can be done…should be done to avoid that devastating event. So if this is an option available to you or your clients then you may want to considered it. But I also know that for every one GOOD agent there are 5 Bad ones and I am sure the same odds carry for people that look to engage in this sort of practice and ultimately; it is a roll of the dice 
My concerns are how do you gain clarity and decide as an agent if this is something you can use in your everyday business or a home owner; who is trying to decide if this is the right option for you?
Here’s an example on how it generally works, it is considered an A B C transaction.
-
Seller does a deed transfer with Investor; this allows the investor to discuss options with the bank and negotiate the sales price.
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The investor buys the property via an option contract (usually all cash or transactional funding)
-
The investor then sells the house to a final end buyer for profit who will be the new owner at the end of the day
***** Understand that they are investor and will be trying to negotiate for the lowest amount possible and looking to resale for a profit. Also keep in mind, that in a short sale the seller will net zero at the end of the day *****
Again I am no advocate for this practice nor am I a critic; I think in this market it will take some creativity to get these distressed properties out of the market place and get us all back to a sense of normalcy. So as long as you are working with a company that is truthful and provides full disclosure then it may all be fine. Some of these companies will have you sign over your deed,(thus your rights) only to have been accused of holding homes and their owners hostage
. Home Owners remember; it is advised to always have a lawyer involved when doing anything that involves Real Estate, because one wrong stroke of the pen and you can be out on the street before the ink drys. I have heard horror stories of people doing some really misleading things to people and home owners ending up out in the cold because they did not know what they were signing. Again always have full disclosure along with understanding when it comes to Real estate transactions.
As a Short Sale specialist; I know first hand how much of a hassle it is to deal and fight with these banks, some of these deals are like pulling teeth…
but don’t choose this option or put your Sellers at risk unless you know the facts. I have met some people that seem to be real honorable in their approach and if ever needed those would be the people I reccommend any of my clients too.
REMEMBER IT’S HARDER TO DO WRONG, THEN TO LIVE RIGHT!
The internet provides so much info, sometimes too much but do your research before working with these types of companies. One good source is the 
Trust me if their there, then you may want to move on to a more credible company.
If you or someone you know is in trouble and in need of help please feel free to contact us anytime, we are always here to help!
Malik Crichlow
REALTOR® , CDPE, SFR
GBH NJ
Direct: 973.849.6907
Fax: 973.843.0277
INVESTING WITH NO CASH…HOW IS THIS POSSIBLE?
There is a trend that I am finding all too common in my area when it comes to Investors…Many investors in today’s market do not have any money and are using transitional funding to purchase homes. Now lets be clear this practice has been going on for years, but now more than ever; even novice investors are trying to strike it rich.
So its important to know what’s going on out there!
If you are unfamiliar with transitional funding, here is a quick description of how it works. With this method of investing, investors use investor funds to buy homes from banks or Short Sales and then flip them to end buyers. This is not a loan or hard money program. You never have to qualify for use of the funds. You are provided with a Proof of Funds Letter which allows you to do a double close and earn instant cash profits on closings.
Here’s how it works: Line up a short sale, REO or any double close purchase then use our investor’s funds to buy the home and flip it to your ready buyer. No credit needed on your part since the buyer’s loan at closing pays off our private investor. This is a No Cash / No Credit transaction on your part.
As Brokers we have to be aware of the various options buyers/investors are utilizing and be aware of the pros and cons of it.
Another option for a lot of investors are utilizing other investor funds as they serve as a “middle man” in the transaction. They come in like a cocky investor talking all this mess 
but in the end they are relying on another individuals involvement in order to secure the deal and get it closed.
Case point: I just lost a deal…it was for 50k and the investor (as we will call them for the sake of this passage) came in with all this talk about buying up the whole area for this big takeover project, so I insisted we start with one… They took care of deposit, town inspections, title, building registration etc…but when it came time to close…They started stuttering…and became non responsive to phone calls, emails and text. When I did connect with them; they said ” my investor is giving us a hard time” wait a minute I said; I thought you were the investor? Guess not; so to make a long story short; they dragged this out for a week (meanwhile there being charged a $100 Per Diem) this took place until the bank killed the deal and they lost their deposit $2,000, I also lost my time, but I regained my sanity.
*SIDE NOTE: Agents MUST be very careful when buyers discuss double closing opportunities, I advise agents not to get involved and stick to their current deal with no knowledge of what the buyer will do with the house once it closes, as that could open up a can of worms.
LET ME JUST SAY THAT I AM NOT AGAINST THIS FORM OF INVESTING, IN MY OPINION WHATEVER IT TAKES (THAT IS LEGAL) TO MOVE INVENTORY IS A GOOD THING. SO I AM IN KNOW WAY TRYING TO DISCOURAGE ANYONE FROM THIS PRACTICE OR WORKING WITH ANY INVESTORS WHO EMPLOY THESE METHODS. ITS JUST SOME FOOD FOR THOUGHT.
AGENTS BEWARE OF THIS TYPES OF INVESTORS
Here’s what to look out for:
- Proof of funds that look suspect
- Investors who say they want to write offers on 20 properties
- Investors who claim they are experienced but unfamiliar with the buying process
- Slow on providing the deposit monies (usually because it isn’t there money)
I know there are probably much more things to worry about in the world but its important to share info with each other as practitioners of Real Estate. This market can bevery tricky, get informed, be aware and always keep in mind; in the words of the great G.I. Joe
Malik Crichlow
REALTOR® , CDPE, SFR
GBH NJ
Direct: 973.849.6907 973.849.6907 Fax: 973.843.0277
If your requesting a Short Sale, Why did they just buy a Mercedes?
As a New Jersey short sale specialist in my market area I see a lot of unique situations when it pertains to how someone got into such a distressed situation. I will start by saying, it is solely someones prerogative if they want to buy something or not and I am not the judge, nor juror, but come on now!
I met a home owner that came to me over a year ago because she was in a financially tough place and needed help selling a property, of course I agreed and we listing the home.
So I priced it properly and we started getting offers 30 days later. Now here is how those offers went:
- 1st offer, @$250k, buyer canceled after almost 5 months
- 2nd Offer $190K, buyer canceled after 7 months
- 3rd Offer at $190K, is running almost 4 months, with no feedback from bank . The Property was vandalized and the buyer walked
- 4th Offer at $175K, is now on the table. Which I have submitted.
At this point I am just dying waiting for the phone to ring…
So I finally got someone to talk to me and now we are getting some where. So I get a call from the negotiator who says ok, based on your offer we have a deal but in addition to the offer we want 10k in seller contribution in order to accept. I argue that if they do not have money to pay the mortgage, where would they get 10k from in the next 30 days? and the negotiator says well if they can’t pay the investor “Why did they just buy a Mercedes?” 
Mercedes? when? “2 months ago” she replied, and guess how much the payment is….drum roll please
I sat speechless after hearing that so I reached out to the seller and said now its time to get some money together so you can do your part in getting this closed. They said they will see what they can do. I asked about the car and she stated well we needed a new car, I said ever heard of Honda? how about Nissan? lol (I didn’t really say that, but I was thinking it)
So now we finally get to the table and the seller could only get 5k together and the buyer had to come with the other 5k, now is that fair? Anyways, It took this to serve as a reminder that clients should be advised that during this type of process they are being watched and they have to think before swiping that card 
I am not saying that the Bank only wanted the 10k because the seller bought a car or anything else for that matter; but it is important to educate sellers AND buyers so that they do NOT make any unneeded purchases during the home buying or selling process. In this market Banks are taking an even closer look at credit (especially New credit) right before closing, so thread carefully people. The serious consequence is that is your deal could be denied and in the end of the day that new car, vacation, or piece of jewelry could cost you more than your willing to pay.
BUYER AND SELLER BEWARE!
Malik Crichlow
REALTOR® , CDPE, SFR
GBHNJ/Sell State Property Solutions Realty
650 Bloomfield Avenue Suite 106
Bloomfield, NJ 07003
Office: 973.429.0990 ext.271
Direct: 973.849.6907
Fax: 973.843.0277
Info@goodbuyhomesnj.com
New Rules for Wells Fargo Short Sales
Do you have a Wells Fargo Home Loan? Well recent changes to the way Wells Fargo is handling their short sales may affect your liklihood of a successful outcome.
With much speculation on this subject in recent weeks, DSNews reported new rules regarding Wells Fargo short sales when foreclosure is within 30 days. The bank’s new policy will allow for only one foreclosure postponement given the following criteria:
- Wells Fargo has an approved short sale sales contract in hand (if necessary, approvals from junior lien holders and mortgage insurers as well);
- buyer has proof of funds or is preapproved for financing; and
- the short sale can close within 30 days of the scheduled foreclosure sale
Beyond these restrictions, Wells Fargo did note that investors may vary in what they allow, and some states require the courts to approve any delay.
If you find yourself against the clock with a Wells Fargo short sale, there is still hope. The bank expressed its willingness to address situations outside these qualifications on a case-by-case basis. Contact us today for help! remember you are not alone…
October: Home Sales Down, Investors Up
NAR reported a 2.2 percent decline in its existing-home sales estimate for 2010 to 4.43 million, down from 4.53 million in September. This represents a 26 percent decrease from 2009, which was one of the worst years in U.S. real estate history. However, total housing inventory at the end of October fell slightly to 3.86 million existing homes, or a 10.5-month supply.
Another interesting point from this report was that investors made up 19 percent of October transactions, which is up 36 percent over 2009. In addition, all-cash buyers were 29 percent of the market, up 20 percent from 2009.
In today’s market buyers are coming in all types of varieties; so it is important to understand who the buyers are and how to service them properly. When dealing with distressed properties like short sales or Bank Owned properties, agents must keep in mind that investor buyers are very particular and must be shown the value of what they are considering purchasing so that they do not submit offers that are 40 cents to the dollar on properties that are clearly worth more. Investor buyers are very active in NJ sales and you must know how to negotiate offers and educate them on what the fair market value of a property is to avoid really low ball offers. As an agent that works with just as many investors as I do regular buyers it is important to know the market and help sellers and buyers achieve their Real Estate goals by means of educating and advising. 
how can we help you???
SIDE NOTE:
People tend to comment that I am a little negative in my blog post; but I totally disagree. I speak for those who don’t have voices; in the towns that I do most of business; you will find that sales are leveling out and there is a steady stream of buyers in the market; but I also see the dark side which is the 100’s of lis pendins and foreclosure filings and I know that those individuals need someone that recongnizing that they are out there. So as much as I would like to just blog about the good, it is just as important to report the not so good so everyone is accounted for.
Thank you for reading!!!
Mortgage Modifications Aren’t Stopping Foreclosures…
I was reading an interesting article the other day and felt the need to share it with my followers. A lot of distressed home owners often ask me about Loan Modifications and the overall success rate that I have seen. 
I will be honest in theory a Loan Modification is a great option but the problem lies with the lenders and their in-abilities to put it together and have it actually lead to a home owner avoiding foreclosure. Most recent one of my clients were in the trial period of a loan modification and the bank screwed up in sending out a particular form to the home owner and this caused the bank to terminate the agreement and place them right back where they started. Of course, this is an isolated incident; but with the frustration and all the back and forth that occurred with their many attempts to modify; they have just decided to attempt a short sale and sell the property. I encourage people to try whatever they can to avoid losing their homes to foreclosure; but I also strongly advise that home owners get the facts and work with individuals that are knowledgable on Foreclosure avoidance options.
Check out the article!
Mortgage Modifications Aren’t Stopping Foreclosures…
Jill Gray of Mesquite, Tex., says her 3-year-old son, Anthony, often tells her before he goes to bed: “I wanna go to the other house.” Last month Gray, Anthony, and Tiffy, their black Labrador mix, moved about 12 miles to a rental after their one-story brick house in Garland was auctioned in a foreclosure. Gray, 38, tried for almost a year to get her mortgage modified. Bank of America (BAC) initially agreed, only to rescind approval, telling Gray that documents were missing—documents that Gray says she sent.
Gray’s experience of being evicted while participating in a program designed to avert foreclosures is being repeated thousands of times at the biggest mortgage firms, according to groups that aid borrowers. The government’s Home Affordable Modification Program (HAMP) came under fire at hearings late last month for granting homeowners “trial modifications” during which late fees and debts can stack up and documents can disappear, triggering foreclosures.
“Many homeowners end up facing foreclosure solely on the basis of the arrears accumulated during a trial modification,” said Julia Gordon, senior policy counsel at the Center for Responsible Lending, in congressional testimony on Oct. 27. “One incomplete payment or one accounting mistake can land you on an apparently unstoppable conveyor belt to
Dubious Results
With as many as 7 million homes facing foreclosure or already taken, according to real estate website Zillow, both the government and companies such as Bank of America and JPMorgan Chase (JPM), the two biggest U.S. lenders, offered programs to forestall seizures by easing mortgage terms. Changes include cutting interest rates for as long as five years and extending repayment to 40 years. About half the 1.4 million temporary or trial modifications granted since the program’s March 2009 inception have been canceled, according to Treasury Dept. data. Only 466,708 borrowers have received permanent modifications. About one in five of the canceled modifications is either in foreclosure or bankruptcy, according to a Treasury survey of the nation’s eight largest mortgage servicers, which handle billing, collections, and foreclosures.
Even borrowers who do win approval and never miss a payment can wind up in foreclosure, the Office of the Special Inspector General for the Troubled Asset Relief Program said in an Oct. 26 report to Congress. “They may face back payments, penalties, and even late fees that suddenly become due on their ‘modified’ mortgages and that they are unable to pay, thus resulting in the very loss of their homes that HAMP is meant to prevent,” according to the report.
Mortgage firms make the problem worse by losing paperwork, according to testimony from Richard H. Neiman, the New York State superintendent of banks. In a May and June survey of 40 counselors representing as many as 14,000 borrowers, the California Reinvestment Coalition found that all of them said servicers had lost or ignored documents, according to Associate Director Kevin Stein, whose San Francisco organization works with low-income communities. “It’s more common to hear that banks have lost paperwork than to hear that they received it and properly handled it,” says Joseph Ridout, a spokesman for Consumer Action, a San Francisco education and advocacy group with a network of 9,000 community organizations nationwide. That leaves HAMP participants vulnerable to foreclosure, a process that has been tainted by allegations of “robo-signing,” in which mortgage firms sign and submit court documents to justify home seizures without verifying they were accurate. Attorneys general in all 50 states are investigating.
HAMP Modifications 
Under HAMP, homeowners have their mortgage payments reduced to 31 percent of their monthly gross income. The process often results in them owing more money because accrued interest and other charges are tacked onto the mortgage balance. Some HAMP modifications add so-called balloon payments to the loan that are due when a house is sold or the loan paid off. “The program continues to perform well,” says Andrea Risotto, a Treasury spokeswoman. “The target of affordability that HAMP put in place—this idea of 31 percent debt to income, which was far more aggressive than what was done historically—is helping homeowners sustain the modification.”
Spokesman Tom Kelly says JPMorgan is able to track paperwork because it scans every document as soon as it’s received. At Ally Financial, spokeswoman Gina Proia says the lender requires homeowners to submit paperwork at the start of the modification process, leading to a “higher likelihood” of permanent modifications and lower re-default rates. Jumana Bauwens, a Bank of America spokeswoman, declined to comment on matters tied to lost paperwork.
Gray, the former homeowner in Texas, says she fell behind on her mortgage bills last year after paying for medical treatments for her son that weren’t covered by insurance. She says she received the modification offer from Bank of America in December and immediately signed and returned the contract, using the supplied FedEx (FDX) envelope. Bauwens said the bank didn’t receive it by the due date. Gray kept a record of her calls to the bank and printed confirmations of documents she faxed. The log reads, in part: “Sept. 9: Called, was disconnected. Called again. Spoke to Christina. While transferred to supervisor I was disconnected.” When her home was auctioned in September, there were no bidders, so it reverted to the mortgage holder, Freddie Mac (FMCC), which was taken over by the government in 2008. The house is now listed for sale at $55,000.
Gray is again being considered for a modification, and the foreclosure sale may be rescinded, Bank of America’s Bauwens says. Gray, who works in the building-permit department in a city called Fate and is a part-time Avon Products (AVP) saleswoman, says she doesn’t expect to be approved. She’s paying $775 a month in rent, boosting her monthly outlays beyond the program’s guidelines on income and expenses.
By Kathleen M. Howley, Dakin Campbell and Danielle Kucera
The bottom line: Programs meant to prevent foreclosures don’t work for many homeowners who participate, in part because of paperwork errors along with Scam Artist who prey on unsuspecting home owners who are in need of help. When in a distressed situation it is imperative for home owners to align themselves with knowledgable Real Estate agents, Attorneys and Accountants to ensure that they are handling their situation properly. We are always here to help, if you or someone you know are upside down in their mortgage or behind on payments, feel free to contact us anytime.
Malik Crichlow * GBHNJ * CDPE, SFR, Foreclosure Avoidance Specialist * Malikcrichlow@gmail.com * 973.849.6907
Be patient it may be a while before we hit the bottom…
According to the Federal Reserve Bank of New York, 2.7% of current mortgage balances transitioned to delinquency, up from 2.6 percent last quarter. Additionally, industry research firm Foresight Analytics predicts residential mortgage delinquencies at 13.3% for the third quarter. 
New threads are popping up every day on ActiveRain, RealTown and other sites posing the question: Has the real estate market hit bottom? Unfortunately, the answer is no … not yet. I actually think we’re a few years away from a recovery.
However, these numbers show an overwhelming need for homeowners to seek the advice and representation of an educated real estate agent. We pride ourselves on learning and staying up to date with everything that is going on in the housing market while educating our clients and anyone that would listen about options for distressed homeowners.
Help is a few clicks away simply visit www.njshortsalehelp.info today!
Statistics show 1 out of 6 homeowners are currently upside down in their mortgage; remember you are not alone. If you or someone you know has questions; we can help…Contact us Today and let’s begin the process of helping, healing and rebuilding. 
Helping homeowners avoid foreclosure is a daunting task; one that we do not shy away from. I enjoy the looks on my clients faces when I help save them from a financial tragedy. With my knowledge of Foreclosure avoidance options; especially through short sales, this has allowed me to help so many people and also given me the privilege to assist in community stabilization in the areas that I service. And most of all we have helped many families find greater financial stability. That’s the best feeling of them all. Together we will lead the housing industry out of the current crisis. And we’re seeing it happen, one homeowner at a time.
How can we help you?
Helping or Hurting? THE CNBC DEBATE ON SHORT SALES…
In todays real estate market many home owners are simply confused about options when faced with a potential foreclosure. Not to mention the tons of Realtors that are not skilled in handling these types of clients but continue to list these properties for selfish reasons makes for a disaster when it comes to fixing the problem. I am no genius but I know home owners are confused, scared and in most cases angry and I cannot blame them. Many of my recent listings have been on houses where agents failed or were not educated on the process thus putting the home owner in more risk. I can’t say that the market will recover anytime soon; in fact I do not see any relief until 2012, but the bottom line if you are a home owner and you need help….give us a call or email us today!!! we are always here to help.
Concluded with a consensus that homeowners having difficulty paying their mortgages should contact an educated real estate agent. However, CEO Alex Charfen had to combat another guest’s misinformation on short sales and hopelessness about the market to get there. Following is a response from Alex, as well as a recording of the segment on CNBC:
Reflecting on my appearance this morning on CNBC alongside the supposedly informed and aware Howard Glaser, former counselor to HUD Secretary Andrew Cuomo, I believe the debate exposed an unfortunate and ongoing problem of misinformation. Too often we see overreaction by talking heads lacking information about the real estate market, trends, statistics and most importantly, solutions.
There is a prevailing defeatist’s view of the market amongst outside pundits. To cite an article in The New York Times as a representation of the entire housing market is, as I mentioned in the interview, anecdotal evidence. The reality is that short sales have increased 1500% in under three years. For Glaser to say that short sales will not be a part of leading our economy out of the housing crisis is to ignore the fact that educated agents are closing short sales regularly.
Short sales are a part of the solution and will continue to be, and dedicated agents who are closing these deals deserve to be commended, not ignored.
If Howard Glaser can’t find an agent who can get a short sale closed, perhaps he should simply visit www.GBHNJ.com.
Malik Crichlow
GBH NJ
REALTOR® , CDPE, SFR
Direct: 973.849.6907
Fax: 973.748.5433
Malikcrichlow@gmail.com
www.NJSHORTSALEHELP.INFO
Bread, eggs, milk and a distressed home owner…sir, paper or plastic ?
Here’s something interesting that happened to me a few days ago that I thought I’d share with you all.
I was at the grocery store picking up a few items (you know the usual) bread, eggs & milk etc…and when I got to the check out line the cashier asked paper or plastic?, then she noticed my Brokers name tag and immediately asked me “how is the market” my initial response was “why do you ask?” she instantly burst into tears…now I’m
thinking to myself WOW what an awkward moment….
“Was it something I said”? I quickly replied; With a fist full of tears the cashier replied “NO” then started to apologize. So I pay for my items and she somberly asked if she could talk to me for a few moments being that I was a Realtor before I left the store, so I agreed and waited on the side for her to close her register. She started out by apologizing again about the outburst but she said she didn’t know what else to do; you see this women is losing her home…I asked her where did she live and to tell me a little more about her situation. She explained that she had a great job as a chef for a popular restaurant and used to earn a 6 figure salary until the restaurant closed due to a shaky food industry. She went on to say that she had sold most of her jewelry, the extra car and mostly everything in the house of value on eBay or craigslist just trying to maintain her expenses and keep up with a $4,700 a month mortgage payment.
She also mentioned that she is working in this store because its miles away from her home and nobody would ever see her there not to mention she really needed the money.
She explained that she was 9 months behind on the mortgage and was fearful that an auction or sheriff sale was looming and didn’t know where else to turn. She said the bank would not modify the loan because her income was too low and was asking if there was anything I could do? My first response in situations like this is to discuss the option of short selling the property, because I hate to see people go through a Foreclosure; she said she had never heard of a short sale and just asked that I do whatever I could to help her.
I visited the home and it was a beautiful place but It felt like the warmth had been taken away and the house felt very uninviting…it was missing couches and family pictures or signs of life and there was mail (bills) stacked up high on the kitchen table that I could barely recognize that it was a table. The house felt very cold. It felt like all the joy had been stripped away, so sad…
She apologized for the mess and we spoke for about 2 hours that night. Just so you all know I got the listing and will begin the tough journey ahead of trying to help this home owner some how, some way find a resolution…I will keep you all posted….
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