(post by BT) Finally, something positive to write about brokering… My client purchased a 1-family Tudor-style home several years ago. As the real estate prices were climbing at insane rates (remember those days!), owners were bombarded with offers to pull out equity from their homes, and to refinance every 2 years. These folks took the bait, and more than once! Finally the straw that broke the camels back arrived in late 2006. The house was never worth more than $575K but somehow the bank loaned them a total of $650 grand. Together, incompetent appraisers and interest-hungry banks gave out more than they had in collateral. So the owners didn’t know what to do but they knew they could not afford to keep the house. Payments were prohibitively high, on a property that was worth $100K less than the debt. What’s the point!? As I wrote in “Get Me Out of My Mortgage”, they wanted to get rid of theirs, but they needed it more than me! When we got a referral to help them sell, we quickly identified the best and only sensible way to help them. We listed the house and began the SHORT SALE process right away. (Read more about “What is a Short Sale”). Before even all the documents arrived at their bank, we had a buyer! The first buyer comes along, gives an offer and decides to buy. Wow, these people are really lucky, I said to myself. We went into contract in the low 500’s. Shortly after, the bank approved the short sale, accepting over 150K in losses. This is great! I felt so much joy knowing I was able to help these people. Then, at the 11th hour, as I contact the buyer to tell him the great news, he begins to play games. “I want 10K off the price.” I did not realize that they put in an illegal basement apartment, and I must remove the second kitchen. You did not tell me it was an illegal basement apt.” Huh? What?! Are you nuts? You bought a 1-family house and thought there were two units there? Who cares what the previous owners did. And, I CERTAINLY did not tell you it was a legal unit. Plus, negotiation time is over, homeboy! Call your bank, get a mortgage and let’s close. I am not going to deliver these “evil news” to my sellers. The wife looks and sounds like a new person since the short sale was approved – like a mountain of bad weight was lifted off of her shoulders. Stick to the plan and buy this house, Bro! “I need to speak to my lawyer”, he says. Lawyer? Here is free advice: If you want to knock off additional $10,000 from the price, you do it BEFORE you sign contract. That was a long time ago. Now it’s too late. You have a big down payment and you won’t have any problem getting approved for the loan. Wait, actually, you are already approved!!! Okay, so you have a reason not to back out - if you do, you will loose your escrow money ($60K). “No, my lawyer made so that I can back out any time.” I know for a fact he can’t back out. Playing games, and the seller is praying that the deal goes through so they can walk away in one piece. For the poor sellers, for your wife who I KNOW loved the house, for the lawyer who already got the bank to agree to the short sale, and of course for me – please stop playing games. We all worked our asses off to make this deal happen. “Let me talk with my lawyer.”

Folks, pray for my sellers that this guy does not back out. I need this to have a fairy tale ending, OK?! In this business, the most memorable deals always go left and right, up and down, before they go forward and close in a happy ending.