short sale
How to Attend a Funeral
One type of social function I have not attended in recent years has been a funeral. It’s not that I’ve been too busy selling real estate in Sacramento to notice when a friend has died, like I’m certain some agents who close fewer transactions than I might use as an explanation. Oh, she’s just too busy to come cry over you, I can hear them whispering to the person inside the coffin. “There’s always something about about your success,” Mark Twain once noted, “that displeases even your best friends.” It’s more that the people who are the survivors don’t seem to be holding as many funerals as they once did.
It could be that the grieving population in general are moving toward a preference for private affairs to pay respect to the deceased. They don’t want to share their grief with everybody and the guy and his dog down the street, not when we have Facebook. Although, when my neighbor’s husband died, practically the entire membership of the West Sacramento Sikh temple showed up at her home, dressed in white, to sob with the widow. All the men went into the back yard to shoot the breeze, and the women pushed back the furniture in the living room, and sat on the floor to openly cry, sob very loudly and grieve. It was beautiful. Why can’t we be as expressive and supportive in times of death like that? Instead, we are supposed to be strong and, for the record, that’s about the dumbest thing I ever heard.
You see, years ago, I decided that I should prepare myself for funerals. This was way before I had written a parody about the affidavit of death. I knew nothing about funeral etiquette, primarily because I had never been to a funeral. I was in my 40s, and I had never gone to a funeral, the reasons for which escape me. I called my best friend at the time, Tammy, and I asked her if she would teach me how to attend a funeral. It was a social skill I figured I better learn, for if nothing else, I would be soon reaching an age at which I better know what to do because, let’s face it, my friends were no spring chickens anymore.
Contrary to what I thought, one does not receive an invitation to a funeral. There is no engraved invitation that reads: Mr. and Mrs. So and So requests your presence at the bereavement service for their son, Mr. So What. Nope, you either read about the death in the newspaper or a friend or relative calls you. Since none of my friends were dying any time soon, I picked up the newspaper and circled a few obscure funerals to attend. See, this is one important thing that still needs to be published in a newspaper. The death notice and obituary section.
My husband, having been a newspaper journalist for all of his life and except for the occasional freelance piece now and then after he was let go, is still a darned good, although unemployed, newspaper journalist, says a death notice and an obituary are not the same thing, and people tend to mix them up all the time. A death notice is a paid advertisement. An obituary is a news story. The Minneapolis Star Tribune ran an obituary on my mother when she died. I cannot imagine having to call sons and daughters whose parents have just kicked the bucket to talk with them about their parents. That job must go to the low woman or man on the totem pole.
I didn’t have any script drawn up. I’m amazed my mother didn’t write one herself. She was that kind of person. In fact, I should probably write my own death notice and get cranking on it. Newspapers have obituaries on file, already written, about many celebrities, just waiting for the celebrities to up and croak.
But enough about obituaries and death notices and on to the event you’ve been waiting for: the funeral. I can share some things with you that I learned about attending funerals of people I do not know. You might think this is a given and everybody knows this, but make sure you bring plenty of Kleenex. Yes, Kleenex is a registered name, unlike, say, toilet paper. Under no circumstances should you bring toilet paper, unless you bring enough for everybody and the funeral is held at a Tractor Pull event.
You should sign the guest register before entering the church. Most funerals will be held at a church. Even if you are not the least bit religious, perhaps you’re an atheist or maybe a Presbyterian, you should still do everything that everybody else does. If they stand, you stand; if they kneel, you kneel. If they sing, you sing, but not very loudly. And it’s absolutely OK to cry, even if you don’t know the person. Just don’t make a spectacle out of yourself. Go easy on the eye makeup, even if you’re Gene Simmons. And you don’t have to wear black, but it’s uncool to show up in a neon mini-skirt and six-inch heels.
This information could come in handy some day, and I am very happy to provide it to you. You never know when it might crop up. People die all the time, even during real estate transactions. I’ve been fairly fortunate in that no sellers have ever died on me during escrow. But just the other day, a client for whom I had negotiated and sold her short sale a few years ago contacted me. She said I probably would not remember her, but she remembered me, and her 2 years were up, and she wanted to buy another home. She asked if I would represent her as a buyer, which I am more than happy to do. To help me remember who she was, she said her escrow was the one in which the buyer had died because the short sale took so long to close.
Well, that could cover a lot of short sales in Sacramento.
Three Sellers Approved for Three Sacramento Short Sales
You know that expression: when it rains, it pours? Often, these little bits of wisdom extracted from life and handed down over the years from generation to generation are based in some kind of truth. Yesterday was one of those days. This Sacramento real estate agent received short sale approval letters on three different short sales in the Sacramento Valley.
As usual, something was wrong with each file. Things are rarely perfect in the business of Sacramento short sales. Agents who expect perfection are those you find hunched over hugging their knees in the corner, rocking back and forth and singing to themselves.
In one file, the lender reduced our commission. This file is a HAFA short sale. Our listing agreement was signed way before the short sale approval agreement arrived. The bank told me that its investor only pays a reduced amount, and that they’ve always handled their HAFA short sales in that manner. They’ve always done it because no other short sale agent challenged the bank — that’s how they get away with it. If they don’t authorize the rightful commission, the Treasury Department won’t pay them; we’ll see how they like that.
The bank can ignore the MHA handbook and the CAR explanation of HAFA rules, but they can’t ignore Laurie Maggiano, the Director of Policy for the U.S. Treasury. They coughed up the commission.
In another file, we need a final court document to close. We’ve been trying to get this court document since October. The case was settled two years ago. The sellers’ lawyer keeps saying it’s coming and she will get it, but it’s not coming and she doesn’t have it. The clerks at the court are taking their sweet time, too. Now that we have the approval letter, the clock is ticking. We might have to call the court every single day until we get the letter. Persistence is my middle name. Hey, I close more Sacramento short sales than any agent I know.
And in the third, Bank of America took so long to get us the HELOC short sale approval letter that we’ve had one short sale approval letter and one extension already from Seterus. Usually, Bank of America is pretty fast. Especially since they use Equator. I am busy today trying to figure out what took them so long with this particular file so we never repeat it again. Seterus refused to issue a third letter until we received the approval from Bank of America, and who can blame them? Not me.
Overall, yesterday was a great day. Three short sale approval letters in one day, and 3 more files headed for closing. Three more Sacramento short sales are over. More happy, happy sellers and buyers!
Should a Sacramento Short Sale Agent Get Paid?
I received an obscure email yesterday from a person who was very upset because the writer realized a Sacramento short sale agent gets paid to do a short sale and, in his words, the seller gets nothing. At first, I could not believe my eyes, but as the words on the page popped out at me, I understood it was simply the frustration and anger of the person writing, and logic didn’t enter into it.
Because if pure logic entered into it, the writer would be upset with himself. He’s the one who, for better or worse, is saddled with an underwater home that he could no longer afford. Maybe it was bad timing, which is nobody’s fault, or maybe the person lost their job and can’t find another, which is also nobody’s fault. Or, maybe the person knew from the beginning the dangerous waters, hard to say, and it doesn’t really matter. What matters is where one is with the property now and what one intends to do about it. If a person doesn’t want to keep an underwater home, this homeowner faces two basic choices: short sale or foreclosure.
A Sacramento short sale agent really wants to help. It’s far easier to sell a home that is not a short sale, believe me.
For many homeowners, the short sale is the better solution:
- A short sale removes personal liability.
- Gives the sellers a clean break.
- Transfers ownership in a dignified manner.
- Relieves a seller of any further responsibility for the property.
- Provides a closure.
And yes, an agent who sells the home and negotiates a successful short sale earns a commission. All of the fees — to the listing and selling brokers, the listing agents, the selling agents, and the costs of sale — are paid from the proceeds of sale; there is no upfront or out-of-pocket expense to the seller.
Try hiring a lawyer to give legal advice for free. They won’t do it. Well, they might if you offer to buy a martini — dry, with a splash of vermouth and a couple of jalapeno-stuffed olives. However, agents don’t sell homes for free, either. A Sacramento short sale agent sells a home on a contingent basis. When finally the home is sold and the seller receives short sale approval, the agent gets paid for services upon closing. Sellers are not paying that agent in advance or writing a check.
Moreover, simply because the short sale agent is receiving a commission doesn’t mean a seller is getting the short end of the stick. If a seller wants to see the short end of the stick, stand back and let the home go to foreclosure. Don’t bother trying to buy another home in 2 years after a foreclosure, because it won’t happen. Every time a seller applies for credit for the next 7 years after a foreclosure, the seller will need to disclose the foreclosure and the credit will most likely be denied.
If a homeowner wants to stick it to the man, do a short sale. If a seller wants to do the bank a favor, then by all means, let the bank seize the home in a foreclosure. Sellers are very angry with the way some employees at short sale banks talk down to them and treat them. You wouldn’t believe some of the stories I hear from sellers. I bet most short sale agents and support staff who are involved with distressed sellers feel their pain; it’s hard not to.
However, to get angry with an agent because the agent is getting paid to perform a service is like getting mad that you get a paycheck when you go to work.
Some Agents Are Dealing With Offer Rejection
A frustrated home buyer in Orange County called to ask why I thought that her offers weren’t being accepted and often, in many cases, were unacknowledged. I don’t know why she called an agent in northern California. Now, I don’t know the Orange County market because I haven’t worked in that area since the 1980s. I primarily sell real estate in Sacramento. But if that market is anything like Sacramento, entry-level housing is hot, hot, hot. Which means multiple offers. This buyer is trying to buy a short sale.
I asked the buyer if her agent had any experience working with short sales. The answer was no. I pointed out that some agents refer their clients to an agent with experience in exchange for a referral fee.
“But,” she moaned, “We’ve been writing offers since January; that’s when we moved in with our parents.”
Four months is a long time to be hitting a block wall. “If you don’t talk to your agent about this,” I answered, “You’ll still be living with your parents in September.”
That’s all the help I could offer because I cannot advise nor interfere with another agent’s transaction. It’s against the Code of Ethics.
I also received an offer from an agent on a Sacramento short sale listing after disclosing that multiple offers were coming. The agent offered list price and asked for the following:
- 3% concession to the buyer
- home protection plan
- pest report and completion certificate
- 2-year roof certification (which may require repairs)
- seller to comply with FHA requirements
I asked the agent why would she include all these things that the bank is unlikely to pay for? On top of which, with multiple offers, I can pretty much guarantee that every other offer will exceed list price by thousands, if not tens of thousands. Once the bank receives the estimated HUD-1 — even if every offer was identical in price — this agent’s offer would fall to the bottom of the pile because that net will be much lower than all the others.
The agent responded rather curtly, “Because we expect to negotiate those things with the bank.”
It’s not my place to tell another agent how to conduct her business, so I refrain from offering suggestions under these circumstances. The point is the bank will never negotiate with her buyers because those types of offers are rejected by the seller. Who wants to sit in escrow for 8 weeks with a buyer whose offer will be rejected or renegotiated? We want an offer that will be accepted first go around.
Evaluation of a Sacramento Short Sale Offer
There are so many reasons to scrutinize and evaluate an offer for a short sale, I hardly know where to begin. I guess I will start by saying there are people in this world, buyer’s agents among them, who wrongly believe that all offers should go to the bank. They also tend to believe that the seller is lucky to receive any offer at all and should not care what the offer is or who it came from or anything else about the offer; the seller should just sign it and shut up.
You might scoff and wonder who could be so incredibly ignorant, but I can tell you that a lot of people fit that description. I help my sellers evaluate purchase offers because they don’t sell a house every day. They also, knock on wood, will only do one short sale in their lifetime. It’s my job to see that the short sale closes.
I am looking 3 months down the road at short sale approval when I examine a purchase offer from a buyer. I consider the odds as to whether that buyer will still qualify for or still be interested in buying that home when we get approval. I consider the financial strength of the buyer, the motives of the buyer, the way the offer was written, who the buyer’s agent is and that agent’s experience level; I also look for signs of cover up or deception. There are a lot of crooked people running after short sales.
I won’t tell you exactly what I look for to determine whether there might be fraud because the crooks will read this and make sure they don’t do it.
In a seller’s market, a seller can also be very choosey as to which offer the seller elects to take. All offers are always sent to the seller, but only one offer receives the recommendation to accept it.
If you are thinking about considering a short sale, call this Sacramento short sale agent first, Elizabeth Weintraub, 916.233.6759. Yes, I will take your short sale if you have listed with another agent who could not get it approved; but I’d much prefer that you call me first.