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August 14, 2010 at 10:07 pm #6397
I went to see a house this afternoon with the express purpose of going the short sale purchase offer route. Like most of these visits the mother started telling me how they didn’t want to sell the house. They thought they’d live there until they died. It was the perfect place to raise their two children, etc.
And then she launched into how they had been screwed over by the bank (It’s pretty much something you have to listen to whenever you meet the owner on a viewing.)
The little boy, about 4, asked why I was there and the lady said “She might buy our house.” And he said NO I won’t let anyone else have our house. She looked like she was about ready to cry and so was I.
But the listing agent was looking for a buyer so I started to explain about how a Narscor short sale works. She started in on how they would have to move to an apartment and how they’d sunk all their money into the home, etc, etc.
I simply could not NOT tell her about three arck. So I did and she went and got her husband and we went over it. Nobody had told thm about deficiency judgments.
The mom then put her hand over her heart and said, “You mean we could keep our house?”
So I stand the risk of pissing off a listing agent, but what would you have done? I figure if I split the commission I get from the three arck deal the listing agent would be making a little more than she would with a short sale, and she wouldn’t have to share that with her office.
I’m going back at 7 PM with the paperwork and a step by step shorthand version I wrote up for laymen. (They are Hispanic and the husband doesn’t speak English as well as the wife.) Next week I’ll have a conference call with them and Bill.
What a difference! I’ve been dealing with these very sad situations for months now. It gets to you. Everything you hear is depressing. For once we can give these homeowners HOPE.
Now that’s a job I can live with! I think I just might even do it for free…well, maybe not.
AmyAugust 17, 2010 at 2:23 am #32680
Nice going Amy.
Pissing off a Realtor(r) to save someone’s life, sanity and self-respect is just too fricking bad (whatever “fricking” means…’always wondered).
You’re now getting to where I’m getting, I see. Short sales are great for your pocketbook and mine (and the bank’s); but there are often other solutions that are light years better for the homeowner, which when employed, don’t cost us anything and leave the owner in the house, and conniving bank %$^&’s out in the cold where they belong..
Just be sure that you are ALWAYS a buyer or a seller in one of these transactions (or any other for that matter), or you are practicing RE brokering without a license. And a licensee (especially a pissed-off one) will cut a hole in your neck and suck your spleen right out through it.
BillAugust 17, 2010 at 2:32 pm #32681
Bill, you say always be a buyer in this situation. So in a Three ARCK deal where the house is listed I should always have a contract on the property myself/my corporation?
A NEO doesn’t seem appropriate, as the family isn’t moving out. What should I use to tie up the house with to avoid a Realtor going ballistic on me?
AmyAugust 17, 2010 at 3:42 pm #32682
I’m sure Bill will have a much better response but mine is…
What does a Realtor have to do with anything related to the 3ARC program?
This is not an offer to purchase the property, it is a possible solution to keep them in their house. This has nothing to do with the Realtor and frankly is none of their business.
This is one of those times where you truly are selling a service even though you are controlling your interest via a NARS EHTrust. You are only offering to Acquire an Interest in a Trust (Personal Property) not purchase or make an offer to purchase Real Property.
If the Homeowner will allow you to have their property placed in “Their Own” Living Trust, in their name and for their benefit, the beneficiaries can now use the 3ARC program to relieve the mortgage and share the equity that is now created as a result.
If the beneficiaries want to sell the house at some point in the future, then and only then may you need the services of or require a Realtors help.
The Realtor is not your client, nor does the Realtor have the power to decide if 3ARC is the way to go. Leave the Realtor completely out of the process as they serve no purpose in transaction or process. Do not be afraid to offend or piss off the Realtor. I’m not sure why you think that suggesting something that would allow the homeowner to keep their home would piss off a Realtor. If it does, you have to wonder about the Realtor, their motivation and their ethics.August 17, 2010 at 3:50 pm #32683
Well, Scott, I was there under the supposition that I’d be getting NARScor to make a short sale offe. I wasn’t there to do a 3A deal.
Even if I tell them that I will pay them the same amount they would have made in a SS, they could get nasty about it.. I suppose.
AmyAugust 17, 2010 at 4:11 pm #32684
So go ahead and make them two offers.
1. Short Sale
2. Suggest you can save their home using a 3ARC program
One involves the Realtor and one doesn’t. All you can do is make an offer and leave it in their hands. Let them decide what is best for them. Then if the Realtor gets pissed, it is the homeowner who does it, not you.August 29, 2010 at 1:52 pm #32685
Well, this deal went bad (for the owners.) I hadn’t heard back from them so I contacted the Realtor, who told me that they had decided to do a short sale. In other words, the agent had talked them out of it, and talked them into the idea that losing the home they love is the best thing for them.
You know, I think that if, as an agent, you have a fiduciary responsibility to the seller, that you owe it to them to promote the Three Arck Program. I even told her that she’d make exactly the same money as if she were doing a short sale and possibly a little more. But this is her idea of helping a dear family who wants to keep their home.
I’ll do the short sale, but I won’t like it.
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