Shot Sale Shenanigans–Don’t be Involved; Don’t let you clients be involved

13 08 2009

It was bound to happen. Short sales, the new salvation for an inconsistent real estate market, have too many characteristics which facilitate fraud. One party, the Lender, is being asked to take a “hit” for immediate payment on a delinquent mortgage. Another party, the Buyer, is getting a great deal on a home or condominium . The third player, the Seller, is getting out from under an onerous debt, and given the chance to “move on” with his or her life.

I have written in the past about the dreadul performance of many Lenders in addressing requests for short sales. I have a request in front of an unnamed Lender right now that is for fair value with a cash Buyer. The last word I have from the Lender is that the “analyst” who will make the short sale decision has not as yet been determined. In a word, this transaction has little or no chance of succeeding, even though it represents a good opportunity for all people involved.

That is one side of short sales. The more tawdry other side is the apparent current practice of providing post short sale credits to Buyers (and Sellers) by realtors once the transaction is completed. In effect, the parties are “re-arranging” the real substance of the short sale, generally to the detriment of the Lender who gave approval to same.

I heard today about a transaction where the closing agent for a short sale, had two HUD-1 Settlement Statements prepared to reflect the transaction, one which described the sale the way it had been presented to the Lender who approved the short sale, the other which described the credit given by one or both realtors, probably designed to backstop the realtor’s tax ramifications.

My advice to each and every one of you. Do not participate in ANY of these types of post closing credit schemes. They are fraudulent, and people involved with the fraud can, and will, be punished. There is no positive spin you can put on HUD-1 (Version 1) and HUD-1 (Version 2). There is only one legitimate Settlement Statement, and it is the one that was presented to the short sale Lender who approved the sale.

I urge you to disseminate this gospel far and wide. It has been difficult enough to obtain Lender approval of short sales; if the Lender starts to suspect wrong-doing after the short sale, there will be an impasse in short sales that will certainly not accelerate the recovery which all of us all hoping for, and desperately need..


Comments : 1 Comment »

Categories : Uncategorized

Perfecting You Persona–Being Different Isn’t Enough

13 08 2009

While acting as a real estate professional, working on purchase and sale agreements, leases, real estate closings and the like, has been interesting, I must admit that nothing in my over 40 years of practicing has been elevated to the status of “earth-shattering” or eveb unique. What I do every day is generally routine; many other people are able to do the same things that I do. There is no question about that.

So, sometimes I ask myself why is it that I have been able to achieve a fair level of success here, while some others have failed. I have reached the following conclusions:

1. You must do something in your profession that makes people remember you. It sounds simple enough, and most times it is. In the past few years, I have taken to wearing bowties. It is not that I look particularly good in bowties. It is just that I am becoming known as the lawyer “who wears a bowtie.” That small thing sets me apart from other attorneys, which, essentially, has been my plan. I know a mortgage originator who brings a pie, which she has freshly baked, to every real estate closing in which she is involved. She has, naturally, started to be known as the “pie lady.” The connotation is positive; she brings sweet things to her Buyers. Another person I work with always wears a special hat to her closings. Gradually, she gets herself noticed, and commented about, when she changes hat, and it is a discussion item.

2. Once people remember you, you need to be “good“. Obviously, something that makes people remember you is what drives new business to your door. But, now, comes the important part. You need to make that initial reaction have some substance. If you are a practicing attorney, you need to be the one who returns “every” phone call, who schedules closings not for his or her convenience, but for the convenience of the client. You need to always be the person who stays calm when others are frazzled, who always offers solutions when none seem apparent, who never gives up until the deal is closed and the deed on record. If you are a loan officer, you need to be the person who always looks for alternative ways of structuring the deal, who shows up at the closing in case there are last minute glitches, who is always positive and never “kills” a deal that can be rescued. If you are a realtor, you need to have a reputation as being a “deal maker” not a “deal breaker”. You need to work ceaselessly to find solutions when there is an impasse. In certain circumstances, you need to be willing to make concessions on your own fee to make the deal happen. You need to be totally loyal to your client.

As I have said, if you can combine the “persona” you have established with a reputation that is postive, you will set yourself above the rest. People will seek you out, and just you. It is great to be on the first page of Google; it is even greater to have a flock of “raving fans” who go out of their way to refer business to you. Your “positve persona” is the key to success; we all can improve ours through hard work and hard thinking.


Comments : Leave a Comment »
Tags: , ,
Categories : Uncategorized

The Gospel According to Emmett D.–”Corny” Phrases to live by

6 08 2009

My dad, Emmett D. Topkins,passed away on November 26, 1964, when I was 21 years of age. For the relatively short time which I was able to interact with my dad, we had a wonderful relationship. We played a lot of golf together, worked on crossword puzzles and camped out with other friends and their fathers. The only real objection I ever had to my dad was his constant use of “catch-phrases” to describe almost any situation. He was, after all, a small town country lawyer, and I thought some of these “saws” if you will, were corny and lacking meaning.

It is now almost fifty years after his death, and the irony of my life is I use these expressions all the time, and what is worse, so do my three sons and my daugter. I have three grandchlldren to date, and I have this sinking feeling that like iot or not, they will carry on the “emmettisms” for themselves and their children.

So, since I use these statements all the time, I thought I would share a few to see if I can get my readers “hooked” as badly as I and my family are. Perhaps, you have others, and you can share them with me in your comments.

1. I Never got in trouble for something I didn’t say.

This one is self-evident but it is amazing how much truth there is here. Real estate professionals all have a tendency to “over-sell”. The price of comparable homes is sometimes exaggerated; statements are made that there was “never” any water in the basement when there is no certainty of that fact; other bidders are described when we are trying to motivate our Buyer to increase his offer. It is part of our culture. How many times these kinds of statements come back to haunt us is difficult to compute. In almost all cases, we truly wish we had said nothing.

2. If you tell the truth, you don’t have to have a good memory.

As I get older, my memory is not what it used to be. I have learned to rely on the truth as my sole salvation. I do not need to worry what I may have said to this person or that person. I tell them all the same thing–the truth. This simple necessary commitment has lowered my stress level and greatly enhanced my reputation. I just do not lie under any circumstances.

3. You can’t make a dog walk down two streets at the same time.

This one is a great “catch-all” when you are dealing with a client who cannot make up his or her mind. No need to explain what you are saying. You just say it and move on. If you are lucky, the other person will grasp your meaning, and that will move the person to make a decision.

4. A Pint’s a Pound the World Round.

This one may go over a few people’s heads, but the gist of the statement is that there are some ultimate truths out there which you cannot escape. Sometimes, I use this phrase just to confuse people and get them away from the subject they are discussing which is taking the negotiations nowhere.

5. Don’t make an enemy for free.

I like this one and I use it often. It really means that if you have nothing really to gain either financially or otherwise, hold off on berating or belittling the other person. It is really an offshoot of “I never got in trouble for something I didn’t say”. Find other ways to assuage your ego. Don’t castigate or embarrass others for the sake of showing how superior you are. The real estate community in Boston, and I am sure other places as well, is very small. That person you showed up today is somebody you may need to deal with tomorrow, and you are better off letting that person survive without some long-lasting antipathy towards you.

There are other phrases which fit into the category. You probably use them on a regular basis without even realizing it I guess my continuing my dad’s wisdom, such as it is, is a way to pay tribute to a person I loved, and lost too soon. The fact that is appears that these phrases will continue with my dad’s grandchildren and great grandchildren is perhaps the way he, and all of us, are immortal.


Comments : Leave a Comment »
Tags: ,
Categories : Uncategorized

Winning when You are losing–Opportunities Abound

4 08 2009

The real estate industry is unique in that many of the best opportunities for marketing and advancement present themselves when there is a problem.

Consider the following situation. There is a purchase transaction which is supposed to close within the next two weeks. The buyers have their financing in place. The sellers are packing up to move elsewhere. I get a report back from my title examiner that there is a defect in title which may prevent a timely closing. I study the title abstract and agree with the conclusion my examiner has reached. Both the buyer and seller are informed of the probelm.

I know that all parties wish the transaction to close. I have a good relationship with my title insurance company. i schedule a next-day conference to explore solutions to the defect. There is a way out; it will take some time, but we can fix the defect. I ask the title insurance company if they are so confident that it can be fixed that they will issue a clean policy. They say “yes”.

All parties have been informed, including the lender. The lender says that as long as the policy is “clean” (no condtions or reservations) they will permit the closing to take place. All parties breathe a sigh of relief. I have helped get the people to the closing table. I have made it possible to close the deal.

How much better a scenario is this for me than saying that there is nothing that can be done. In reality, how much better is this for me than if there had been no problem at all.

My point is that sometimes we are better off if things do not go super-smoothly. Sometimes, we are advantaged when the wheels come off the cart, and we figure out a way to put them back on again.

These opportunities do not only arise for lawyers or title professionals. Many times loan officers or realtors face the same obstacles. If they can come up with a solution, they are heroes. But even without coming up with a solution, if the “E” word, effort, is expended, people are appreciative.

So the next time there is an obstacle to a deal, think twice before saying it cannot be done. Maybe it can be done, just not the traditonal way it was done before. Expand your creative powers and try to make things happen. You will be surprised how often there IS a way, and when you find it, you are a difference maker. That is the category each of us wants to be in all of our endeavors, and bad situations can often present the best chance for us to show how unique we can be.


Comments : Leave a Comment »

Categories : Uncategorized

The Closing Table–A Venue for Marketing!!!

3 08 2009

As a Massachusetts title attorney with over 40 years of closing experience, I am often shocked at the number of missed opportunities for marketing that the closing table presents. For my own part, I view the closing table as a chance to market my law firm and to provide the Buyer with an array of services my firm offers. This not only includes helping their firends and relatives with their next real estate transaction; it also includes explaining why home ownership presents a need to bring their estate plans up to speed and to make sure their insurance coverage is adequate. After all, they have just signed up for a large liability in their mortgage, and they want to make sure that if something happens to them, their home (and children) will be protected.

There are several other things I do at each closing:

1. I always give the Buyers a small gift. Sometimes a special bottle of wine, other times an umbrella with my law firm’s name emblazoned on it.

2. I have now taken to preparing a large loose leaf binder with the name of the Buyer and the property address. I tell the Buyer to place a copy of the HUD-1 Settlement Statement and a copy of their Owner’s Policy of Title Insurance as the initial entry into the binder. Thereafter, I advise them to place a copy of each and every invoice relating to their hom into the binder. If they are diligent in doing this, they have created a wonderful marketing book for you, the real estate professional, to sell their home when that time comes. recently, I have inserted a plastic sheet for business cards. i place mine in the sheet and urge the selling broker or buyer’s agent to place theirs in the sheet, as well. I am a member of a BNI Group. I also place the cards of those BNI Members in whom I have confidence into the binder.

These are the marketing opportunties I have observed for other real estate professionals:

!. Realtors. A realtor in attendance can oftwen firm up future business by being at the closing and being helpful. I have seen realtors bring small gifts, as well. Many seasoned realtors also backstop suggestions I make to the Buyer, and in general serve as liaisons in the process. It is akin to bringing home the girl you brought to the dance, and the sense of closure is important.

2. Mortgage Professionals. I am surprised at how few appearances these people make at closings. To me, this is aperfect opportunity to market only to the selling broker or Buyer’s agent who almost certainly in attendance. On many occasions, the listin agent appears, as well. Closings take an hour or so, and there is a lot of dead time for the realtors. What a great chance for a mortgage originator to make a captive sales call. He or she can answer questions, speak about new programs to people who have no choice but to listen. Maybe a new deal sprouts from this initiative!!!

Perhaps, many of you have found closings to be boring chores foisted on you by your superiors. AS this post indicates, I view them quite difffertly, and I urge you to give some thought to some, or all, of the marketing ideas I have shared herein.


Comments : Leave a Comment »
Tags: , , ,
Categories : Uncategorized


Follow

Get every new post delivered to your Inbox.