Perrysburg Blog

Guaranteed.

It’s a strong word.

“It shall be done”.

“Do this”.

Or how about “promise”.

Also a strong word.

In the world of short sales . . . . I don’t think you can either or honestly issue many guarantees or promises or commands – not unless you are the mortgage holder.

They hold the note.

They loaned the money.

They have the gold and they make the rules.

The signs that proclaim “I Buy Houses!” are usually come ons for a bait and switch exercise to list your house or even worse get you to fraudulently convey control of it.

The Federal government has an opinion about this too.

You can read about it here.

I will boil it down for you:  no promises allowed.  No guarantees allowed.  No getting paid up front.

Any Realtor or “real estate investor” who approaches you and wants some money up front to help you with your short sale or foreclosure?  They are breaking FEDERAL LAW.

Any Realtor or “real estate investor” who comes and promises results, or claims some inside track with the lender or the government . . . again, breaking FEDERAL LAW.

The FTC says that paying $$$ up front is totally forbidden -

“The most significant consumer protection under the FTC’s new rule is the advance fee ban. Under this provision, mortgage relief companies may not collect any fees until they have provided consumers with a written offer from their lender or servicer that the consumer decides is acceptable, and a written document from the lender or servicer describing the key changes to the mortgage that would result if the consumer accepts the offer. The companies also must remind consumers of their right to reject the offer without any charge.”

I have not yet seen anyone doing this in Perrysburg.  I have seen this happen in Toledo and Sylvania . . . . with terrible results for those scammed.

Nothing in a short sale is guaranteed – except that it will be hard and difficult, filled with surprises, and the end result holds the potential to get you out of terrible trouble.

In reference to this.

Which I cannot print or publish right now.

Since it’s not my news to publish.

But it will be the biggest PB commercial announcement since Levis Commons.

Coming soon . . .

Here – link.

Why?

Because if this proliferates . . .

If this is not overturned . . .

If this spreads to Ohio . . .

No one is going to be able to either get a mortgage or get title to sell a home with a mortgage.

Simply amazing.

The Federal system of 50 different states with 50 different state court systems should insulate us from a blow out mistake in another state.

SHOULD.

Will it?

We will see.

No lender and no title insurance firm can operate in such a legal environment.

It’s not.

It’s not the end.

It’s a house – you can get another one.

It’s a collection of sticks and dirt.

There is more to be had.

It’s not worth your marriage.  It’s not worth your family.  It’s certainly not worth your life.

I am at a meeting – a real estate meeting – writing this.  I had lunch (outside on a terrace, so you can now figure out I am not in Northwest Ohio . . . ) with a fellow Realtor from Nevada.

In Nevada they have 6 years, he tells me, to come back and collect from sellers who default.  And there is a HUGE amount of turmoil with his clients when they default (in Ohio lenders have 2 years to collect).

But – by his estimate – over 80% of the homeowners in Las Vegas are upside down.

4 out of 5.

The largest employer there is the local school system  – so their hope for job growth is limited.

By those metrics things are better in Toledo and Perrysburg.

But no matter what market you are in – when you are in distress with your personal real estate – it is not the end.

You need good help and advice and counsel.

You most likely need a good real estate attorney.

And you need perspective.

Life is more important than one house.

What you do with your life is more important.

And no matter how bad it is today, how bad the dunning phone calls are, how far underwater you are, how much equity has been destroyed – it is just a house.

They promise.

They promise the seller.

Who promises the buyer.

Who relies on the promise: “The Short Sale Manager will give us an answer by the 21st of the month . . . !”

Sure they will.

Because they “promised” to.

But they lied.

Things are going to happen.

Something is going to change.

Events are going to modify their promise.

Why?  It doesn’t really matter, does it?

They (the aggrieved bank/banks) are in control.  They are being harmed.  They are losing money.  They feel like they can modify what was said last month just like the upside down seller can modify the terms of the repayment to the bank.

None of this is malicious or intentional.   It just happens.

So be very careful to be FLEXIBLE when you are selling via a short sale.

And be very certain that you can be MORE FLEXIBLE if you are attempting to purchase a short sale asset.

Flexibility will be required.

The pay off for your flexibility will be worth it:  either a forgiven debt or a great house at a killer price.