Advice for Nice People Facing Financial Disaster

Jay's Prologue: I "met" Cathy Clark on Point2 Agent's community blog RELiberation. Cathy is a Realtor in lovely Cape Cod, Massachusetts. She's bright, funny, and clearly "gets it" when it comes to real estate. Cathy penned a post on RELiberation yesterday that I enjoyed so much, I asked her if she'd mind if I shared it here on the Phoenix Real Estate Guy. She graciously agreed…

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I had a call from my favorite former Clients a few weeks back.  I sold them their house about a year ago. Young couple just starting out.  First-time home buyers.  I didn't like the mortgage then and certainly don't like it now.  I tried getting them to shop for someone local and more reputable (or at least someone I had heard of before!) but the mortgage broker was a friend of great uncle Harry's second cousin, twice removed.  The closing was a nightmare.

Flash forward one year.  I've stayed in touch with them.  New baby, a two year old with health problems, an ex-wife taking him to the cleaners.  New wife couldn't get her job back after the baby was born (hairstylist, so independent contractor, just like most of us).  He's working as a mechanic, even though he's a Paramedic.  He needs additional certification to get a job locally in his chosen profession so he's going to school nights.  He'll graduate in two months and find a higher paying job, no problem. She's now found another job, grandmother's taking care of the kids for free.  Needless to say, they fell behind, called me, put the house on the market.  Find us a smaller place?  Someone mentioned a short sale to them.  "How does that work?"

"Step back a minute", says I.  "Take a deep breath. Let's think about this for a moment.  Have you spoken with your lender?  They don't want to own your house, Jim.  If you don't speak with them and explain the situation, how can they help you?  And believe me, they want to give you a chance.  There are a lot of expenses in short sales and foreclosures.  They would rather work something out for you.  Just CALL THEM!  Explain and ask for help."

Jim called me today.  They have a six-month reprieve!  No mortgage payments for SIX MONTHS!  Restructuring the loans to incorporate overdue payments into future payments over the life of the loan. They were going to borrow money from Mom & Dad to get caught up, but now will not have to swallow that "pride pill".  Family has no idea what's going on.  Odd, isn't it, that they called the Realtor before the family?

They'll be back on their feet very soon.  He's already had that job offer, pending his passing the exam (at the top of his class, so no problem). 

Result:  They'll keep their home. I lost a listing and, potentially, three sides.  But I feel like I'm on top-o-the-world!

How Good Is My Life!

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Jay's Epilogue: Cathy didn't lose a listing, she gained a client for life. These folks will be buying more homes. What Realtor do you think they'll chose? What Realtor do you think they'll refer friends and family to? I sure know to what Realtor I would refer anyone looking to buy or sell Cape Cod real estate…

Thanks for sharing this with us!

[tags]Cathy Clark, Cape Cod Real Estate[/tags]

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