Hi folks. Let me tell you a little story about one of my Short Sale Sellers. Let's call him "Responsible Rex". I met Rex many, many years ago. On most days we are very good friends and on some days I don't like him at all. But overall he's a pretty good guy. And he happens to be a Real Estate Broker.
Back when Real Estate was really booming Responsible Rex, like many others, started buying property. He did OK on a couple of flips and reinvested that money into rental properties. All were financed. Things were going well. The rentals were mostly paying for themselves and his Real Estate business was booming. Cash was flowing.
Then it seemed like over night his Real Estate business hit the proverbial wall. Responsible Rex went from selling 60-70 properties a year to less than 20. And to make matters worse property values dropped by more than 50%. Do the math. 66% decline in business. 50% decline in value. This equates to an income loss of almost 85%!!!! Holy reduction Batman. Overnight, Rex went from making more money than his Doctor to less money than.......well....just about anybody with a job.
Responsible Rex needed to do something. He needed to do something fast. Rex needed to unload debt. So he placed a few of his properties on the market. The properties sold but in order to make it happen Responsible Rex had to bring big checks to closing. He drained his finances to do so.
Responsible Rex was an honorable man and honored his financial obligations. No strategic default for Rex!! The mortgages were paid in full even though it wiped him out. Rex went from being a homeowner to being a tenant.
Rex was also a smart man and very quickly started revamping his Real Estate business. Before long he found a new niche and his business started climbing upward. Then, as fate would have it, life threw a curve ball and smacked Responsible Rex right upside the head. His wife, Sassy Sadie, started having serious health issues and almost died.
Rex, unable to focus on his business, started sliding into despair and his business once again started to nose dive. Things were very difficult. Rex didn't know what to do. He needed money and he needed it bad. At this time, Responsible Rex was actually staying in a hotel in another town to be close to Sassy Sadie while she was under going treatments.
Out of necessity, Rex, missed a couple of payments on his remaining two rental properties. He used the rent to pay for necessities instead of mortgages. Low Life Scumbag!!
BUT....Rex is a master at moving forward. Within a few months he was able to send in the 3 payments he had missed on his mortgages. Rex was back on tract!!! Sassy Sadie was out of the hospital. Things were looking good.
Then surprisingly, Responsible Rex received letters from Bank of America. They returned his checks and stated that they needed certified funds. So Rex, being Responsible, ran down to his bank and sent them cashiers checks. About a month later these too were returned. What the......!!!!
Bank of America had started foreclosure. They told Rex to contact the foreclosure Attorney to find out how much money was needed to reinstate the mortgages. So he did. However, the Attorney couldn't give Rex an amount. The Attorney said to call back.
This went on for many months. Bank of America would NOT give a reinstatement figure nor would they accept any payments. In the meantime, the tenants in both properties were served foreclosure papers and moved out.
After about 8 months of this Responsible Rex, totally frustrated with Bank of America, contacted me. To be rid of his frustration it was decided to list his properties and sell them as Short Sales. So we did. Both properties were sold and were closed on in May.
Fortunately, Responsible Rex Broker Bryant was able to make it through all of this with his head held high. He did the responsible thing. And now he and Sassy Sadie The Lovely Wife have moved forward and are living in their new home in Solivita and Tutas Towne Realty is having one of it's best years ever. The Storm has passed.
Folks...if you are struggling with keeping your property and are thinking about doing a Short Sale then give me a call. I CAN relate and I can help. Sometimes being Responsible requires making hard decisions. What say you?
Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.
Want to find out more? www.CentralFloridaShortSales.com
***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.
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Reserved Parking For "The Lovely Wife"...TLW...ROAR!
TLW...Roaring :)
Hey Responsible Rex...I mean Broker Bryant...
I like your post and I'm glad to hear you're turning the corner. Things haven't been quite so exciting here in Texas, but my wife and I have stories we could share as well. The agents with real integrity can make the come backs.
Way to go and best of luck to you in this market!
Jason, Cypress, TX
Beautiful BB :) It is nice to choose a Realtor that can relate to YOU!
It's nice to hear that everything is on track for you. Doing the right thing should never go out of fashion, but unfortunately a lot of people don't feel that way. Good for you for sticking with your principles.
Holy crap! You're quick on your commenting! lol. Thanks for the response.
So how does TLW like being called "Sassy Sadie"? he he. And it's sad that this sounds like typical BofA. And really sad for Responsible Rex! I'm glad the short sales went through. You get another feather in your cap, and Responsible Rex got at least a little bit of compensation. It's still a sad state of affairs that it had to come to this!
RR/BB -
Your story is inspirational at the very least. Heroic actually. Hope things continue to go well for Responsible Rex and the Lovely Lady.
And did I mention, the poet in me loves alliteration - Hope Sassy Sadie does, too.
Thank you so much for sharing this. Moral of the story? Sometimes bad things happen to good people. It's important that people recognize this fact before casting stones. You have a way with words, my man.
To My Face Book Friends and My Close Friends Here...
Most of you know how things went down for me. Let's not get into any of that on this post. I don't want my issues all over Active Rain or out in Cyber Space. Thanks Guys. I know you'll respect my wishes about this :)
Hun...
You wreck me. You just wreck me. (Sniff Sniff: Damn allergies)
:)
TLW...ROAR!
we ceterainly see things differently when we have walked a mile in their shoes - been there - done that and that is just one reason you and I will always be human to our clients
Hi Bryant... to see how well things have turned out for you and Billie really makes me believe in karma.
Good health and good business to you both.
BB & TLW, I can only imagine what the trials and tribulations you have gone through...you are stronger than me. But that which doesn't kill us makes us stronger...street cred is all yours dude & dudette.
Bryant Good for you. You are a great example of working through things to make life work for you. Glad your wife is better too.
marcy
And one more thing:
I refuse to call BoA, by it's proper title. Until they earn that title, I will continue you to call them Bank of A$sholes :)
TLW...ROAR!
I am so glad that you made it through the storm and landed in sunny Solivita! :o)
Congratulations Bryant for making lemonade out of lemons. Glad to hear your story had a happy ending!
OK Bryant - I guessed it was you at the end of Para 1! I am so proud of you, what an inspiration. Go, Bro!
Good for you! I'm glad to hear things are getting better for you and hope they continue to improve! All the best!!
Another great post about and a dose of THE TRUTH from someone who's willing to share! Thank you sir!
I knew it was you by the end of the first paragraph too. But I guess I ought to. Haha. Not to sound all cheesy in front of our colleagues here, but you inspire me Dad (you always have). Very cool post. And I'm really happy for you and Mom. Things are really turning out great!
BB & TLW,
Glad to see everything is back on track. Love your stuff!
Hi BB & TLW...
Inspirational story. One that is hard for a broker to tell. However, there was a purpose here. I hope that those who wish to condemn those those who do wind up in strategic default slothful bums will give this a read and change their tune. I reblogged it because I have reblogged stories about strategic defaults and those who would point fingers.
I'm glad that you are back on track. I hope that everyone who has been working hard and struggling has a happy outcome in the end.
Any idea as to WHY BOA refused to take your money??? On the surface it seems senseless.
... if I didnt admire you enough anyway, well this just proves that I was right to do so :o)
You Sir continue to be an inspiration for many !
Bravo Brutha Rex ;o)
BB & TLW - Although I am not here commenting on AR everyday.....I feel as though I have known you for a long time....(since I joined AR). I have followed your blogs and your lives. You are blessed. You have been through so much and I am glad that things have settled down for you. I wish you all the best. I will always think of RR now when I see the BB....
And Billie.....I completely agree with your feelings about the name and meaning of "BOA".
Awesome post!
It has been a long cold lonely winter, but the sun does come up. Folks have to make decisions as best they can. The banks and the government are surely out for their own interests. Nice to hear the good news.
BB - You and TLW ARE an inspiration! I know your clients love knowing that you've been there, done that and can totally relate to them. What is sad though, is that even in hardship, you did the right thing (well above and beyond what most of us would have/could have done) and then still got burned by BOA. Like you and TLW always do--you pulled up your bootstraps and surged forward.
Let me just say, I'm totally impressed.
And, BB, will you please help TLW get something done about those allergies?!
Hey, Broker Bryant:
Another 'Rainer, Michael George, had a similar issue with Wells Fargo, and went round and round with them before he finally gave up. I'm so glad you got everything sorted out and were able to move on with your lives. You and TLW are lucky to have each other!
Cheers,
Robin
Hi Rex BB...If only I had one person wanting to move to your part of Florida. No, make that two. Oh, what the heck how about a gross. Nothing gross about that.
You two are amazing!
Kate
BB you and TLW are an inspiration for many. Though you have had a very rocky road over the last few years you still continue to give back to the AR community and help others who have found themselves in your same situation. Thanks for sharing your story.
Bryant, I guess I just know you longer. I knew by the third sentence who your Responsible Rex was. You may not have always liked him, but I have and I suspect there are one or two other people who feel the same way. There is no doubt that life sometimes smacks you in the gut. It's how you pick yourself up and handle it that is the measure of a man/woman. I can only hope your future, you and your sassy Sadie, is bright and filled with love.
Bryant, That is an amazing and unbelievable story. To come back so many times... wow. Good Luck to both you and TLW. I'm glad things have turned around and are turning out so well!
I am just so happy that you folks are where you are at this point and time. It's what we get through that makes us who we are. I love you guys. :)
Bryant- I am SOOOO happy that you are through the storm. What a storm it was. In life, everything happens for a reason and I know that empathy is a very powerful tool that you can bring to the table. Good for you!
The first foreclosure I saw after I got my lisc. was a referral from another agent who was leaving the business. The seller was behind 3 payments and BoA wouldn't let her get caught up. She was always just a little short. She took cash and needed a check, brought a check for the statement amount and it didn't have the interest and penality so it was turned down. She had lived in her home for over 20 years, had re-financed to pay off medical bills. The whole thing was flusterating. Her son tried to help by taking over the payments and the bank wouldn't talk to him only her and in person. By the time we finally got someone to explain what was going on, the home was foreclosed on. That was in 2006, I have not liked BoA since. We are a small town market and agents will not refer business to banks that don't work well with clients.
Pouring yourself out there and to careless for what others might think is so gutsy, and why I subscribe here.
Thanks for sharing another moving story Bryant.
Bryant, Very inspirational story. I knew it was you and TLW right away. I wish you both lots of happiness, success and good health in your new home.
The debate over short sales and strategic defaults seems to be bringing out some of the worst in people. There are many who seem to say "If I would not do it, it is wrong, and thus the person who would do it is evil and the transaction is a scam etc."
Others such as myself are pointing o0ut that we are Realtors not St. Peter we were not selected to sit in judgment and this moralizing only serves to give everyone a bad name.
So what is the source of this moral outrage?
Possibility # 1: The bible says those who borrow money and fail to repay it are wicked. Of course the bible also says that debts shall be forgiven after 7 years. The bible does not include the notion of a SECURED financing.
A secured financing includes TWO promises: if you pay x you keep the security and if you decide to not pay x for any reason the lender gets to take possession of the security
If the lender takes possession then debt HAS BEEN PAID in accordance with the terms of the contract
Thus the Biblical injunction to pay your debts is fulfilled.
Possibility #2: The "moralizer" fals to recognize the difference between SECURED and unsecured debt. They are applying the outrage they might feel toward a borrower who walks away from unsecured debt to the mortgage borrower.
While in an unsecured debt the promise is just I will pay x (so that the failure to pay is breaking the promise) with secured debt there is an alternative which is part of the original agreement namely if I stop paying FOR ANY REASON you Mr. Lender can take possession of the security (in this case a home)
Possibility #3: The "moralizer" can only apply what he/she thinks he/she might do to the situation and draws rather sharp boundaries around those who might so something different. "If I would not do it, it is wrong, and thus the person who would do it is evil and the transaction is a scam etc."
It is important to remind everyone that the Golden Rule is rather narcissistic in this regard. To do unto others what one would have done unto ones self is to keep the focus on "me" -- what would I do. We should strive instead to apply the Platinum Rule: Do onto others what they would have done unto themselves.
Regardless of the source of the moral outrage it is misapplied and just plain wrong in and of itself. As one of the comments on my featured blog yesterday said "
It's not our job to judge clients' motives (or potential clients). A short sale is usually as beneficial to the bank as it is to the seller. Unfortunately, many sellers wait until they're just about destitute before they decide to short sell. Is that our goal as real estate agents? Only help the destitute? If you're upside down on your mortgage by a couple hundred grand but can "afford" to make the payments, who are we to decide you don't deserve a short sale? Many home owners are starting to look toward the future. Maintaining that debt for the long term without the ability to sell or refinance may delay a person from being able to retire when planned, from being able to pay for college for their kids, etc. I'm not religious, but I thought Christians were supposed to leave judging up to God".
It has been inspiring to watch your journey here on Activerain.
I remember when the market was good in Florida, when I first joined here and it was terrible in MI. Then it went downhill in Florida. You and the Lovely wife have risen above the circumstances, alway kept you integrity and helped many folks along the way.
Love Ya!
BB: Wow, what a well written and touching blog post. I was wondering about details of what had happened with you guys. God bless you both!
I'm still in my storm . . . glad you pulled through!! And the photos of the new place are lovely.
Bryant,
Glad things are going back on track for you. What's with Bank of America? I'm hearing stories like this every day.
Thank you for sharing your story with us and giving us all hope that things do work out for the better
The pseudonyms fit you both! BoA has that kind of reputation but not to worry, your reputation is stellar! Thanks for sharing your story with us, BB - I do love a happy ending.
BB - The two of you are so amazingly strong together. I'm sure that your clients draw strength from know that you can truly empathize with their situation.
Also, you put a face to what happens that creates short sale. Could anybody here really think "Sassy Sadie" could be anybody but TLW?
May things continue to get better and better for both of you.
We, as real estate agents, are not protected by a bubble from what others are experiencing...Your honesty and show of strength to share what others would never...Thanks, Jen
I smiled only because I got the feeling I knew Sexy Responsible Rex too and by the end of the next paragraph, it had to be someone I know and admire.
Yes, it's a difficult decision and no one wants it. I guess Responsible Rex learnt a lesson or two from this too.
Oh, BB - Fluck the morilizing holier than thou's... That said, I happen to like RR even on bad days, if there is such a thing.
So glad that you are happy in your nifty new place, truly:-) You've got more courage between the two of you than all the high-horse jockeys trolling these parts put together...
Wonderful, heart felt post. I'm glad you guys have turned a corner. It gives inspiration to those of us who haven't found that corner yet. There is a voice screaming in my head; Why was Bank of America allowed to do this? Or Wells Fargo or any other bank for that matter. Is it because they knew the government would cover their loss? How many victims are out there? Will there ever be any recourse? Too bad that only Lawyers benefit from class action lawsuits.
I'm so glad that things have turned around for you two. You are blessed.
You forgot to mention the part about how when all of this was going on in your lives, you STILL took the time to alert others as to what was coming in the market, how you were strategizing, etc., so that others might have an easier time of it. With that kind of karma, how else could things have possibly turned out for the two of you, but good? :)
not much fun, not to difficult to have empathy and understanding for your clients. while i didn't have any rentals, i'll raise you 3 stents and a divorce.
this too will pass.
forward, mush!
best of luck, you deserve some.
Just goes to prove that the difference between a success and a failure is not how many time they fall, but how many times they get up.
RR,
As posts on the morality of strategic defaults or short sales hit the airwaves, your honesty should give all pause. Many, many of us took a tumble with the market. The honorable did the very best they could. Let no one judge us based on what they do NOT know!
You and Sassy inspire us all.
As a newbie I was unaware of the "back story" here now that I know some of it my hat is off to you -- you are an inspiration and one whom each person here should be proud to know even a bit
OMG BB...
Will the debate never end? I think that in cases such as you described, responsible people are painted into a corner and end up doing what is right for them.
And if it's a win-win for all parties, that's even better!
Lol...
I picked out my name "Sassy Saddie".
I think Rex had me as Adorable Agnus or something. Paah Leeeeze :)
TLW...ROAR!
Glad that Responsible Rex & Sassy Saddie are on the upswing. Enjoy that new place!
Ah com'on. You know that good ole Rax should be in bankruptcy, living in his vehicle, if he has one or under a bridge as a real estate investor who purchased "more than he could afford".
BB - you & TLW are an inspiration to us all. I'm sure going through the storm was not easy but the important thing is that you made it through.
I think deciding about a strategic default is a very personal decision, and one that I hope people don't make lightly. But in all the posts I've read about it, the idea of "strategic" seems to be confused with "necessary" - two very different things. Even if your post, you say "out of necessity, Rex missed a couple of payments..." This doesn't seem like a strategic default to me, you Rex did what you he had to do. There was no choice.
I wish all Bank of America (or whatever you wish to call them, see comment #15, ha-ha) executives could read this post.
Thanks for the inspiring read. I am actually experiencing some 'rain' myself right now, so it is great to see a success story like yours and know that there is a light at the end of the tunnel and things can turn out even better than you expect. As always, enjoyed reading what you had to say. And I am so happy that the two of you two are here today and enjoying your new home!
Thank you for sharing this post. Way to pick yourself up and keep on going. That is what shows true character.
Two of my favorite AR peeps...another testimony as to why BANK OF AMERICA CAN SUCK IT!
Your post is going to help so many who are struggling as you did on many levels. The B of A really sucks it is just amazing what they did to you. I am glad for you and TLW that you are on the other side of what must have been just a horrible time with many pressures. Most important is health. I wish you the best in the future.
I had heard TLW comment that the new digs were awesome and it was great to be a hot young chick at the pool again.
I am so glad to hear that things are back on track for the two of you! That new residential complex is fantastic!!! Shows what you CAN do and also what a *%^*( bank BOA is!!! Why does THAT part NOT surprise me???
Thanks all. We appreciate the support and understanding. TLW and I have been through the ringer the last couple of years. But such is life. We all have things we have to deal with. The key is to keep moving forward.
I'm not quite sure why BofA wouldn't give us a redemption figure for the mortgages. The last straw was when in a 5 day span they sent me paper work for loan mods where the payments went up and paper work for 6 months of reduced payments. BUT still no figure to bring the mortgages current. So we said screw it and just sold them.
Our only regret is that we didn't short sale the other properties. Could have saved about $50,000!!! Of course you can't predict the future.
Anyway, we are now happily living in our new house and have about $700,000 less debt!!! Life is good.
You can't predict the future - but you can hold your head, up - give the BEST advice anyone can, and treat your customers with respect. You guys are AMAZING!
Wow...had no idea all this was going on...yet through it all, you've been generous with your knowledge and managed to help a lot of clients at the same time. I'm even more impressed than I already was. ;-)
BOA...don't even mention their name in my presence!
I don't know what to say...except Thank You. Thank You for being honest. Until we are able to have frank discussions like this, we will continue to pretend. There are too many agents selling homes while losing their own. By the grace of God and a ton of hard work & courage, you & TLW pulled through & continue pulling through. Thanks for telling the story of so many who have not and will not make it. It's a tale that deserves to be told.
Great story to share. I am glad that Rex came out of this strong. :) Well, all I can say is that my wife speaks highly of you and I am glad that she came to know you. You guys are an inspiration.
I think a lot of "us" are in the same situation and scared to talk about this... I have followed you guys for many years and just think the world of you (although I rarely comment). Good to see you put it out there because you just never know how it makes other people feel a little more comforted along the way.
Connecting with your readers is one thing you definitely don't miss the mark on!
Jamey
This post was truly inspriational reading for anyone in those circumstances! Very well written and so glad to hear things are going so well for you! You guys rock!
Lots of comments. I know the storm as well although mine has not passed yet. Glad to see successful outcomes in spite of the bank! And Sassy Sadie sounds like such a reasonable moniker!
Bryant - I have a lot of favorites when it comes to your posts and this one is right up there. The word 'inspirational' has been used on many of the comments here and is thrown around somewhat loosely these days. However, I believe you and your better half define the term.
In agreement with all who said "brave of you to share". I say brave and smart, to share. Others learn, you share the load, if only in spirit, and get the support of friends here on AR. Glad to see you have come through the proverbial woods and are in the clearing! Again, congrats on the clean bills, (both of them!)
I agree that your efforts have been heroic. Not many people could have weathered both the financial and emotional storms that you've been through and come out intact. Any client in your market areawho doesn't choose you for their broker is crazy. I cried when I listened to "Here Comes the Sun." I do so know what you've been going through and have the greatest admiration for you both.
BB - as many have said, thank you for sharing. And thanks for all you do for us here at AR. You and TLW make me laugh so often and this is good in the world of Real Estate.
Sarah #64 - well said!
Sassie Saddie Says...
It's alright. It's behind us. The ice melted. And here comes the sun. Yay!!! :)
TLW...ROAR!
Bryant,
I knew it from the 3 -4 sentence. I knew that and my heart was squeezing... You have the guts to put it out. I had similar 10 years ago
Enjoy the new day
Bryant, how did I miss this post?
Wow! Can I relate to this one! In this business, that story could be about any one of us - either now or right around the corner!
Glad you've pulled it together. There's no way that you wouldn't.
Big hugs to you guys!
"Fortunately, Responsible Rex Broker Bryant was able to make it through all of this with his head held high. He did the responsible thing. And now he and Sassy Sadie The Lovely Wife have moved forward and are living in their new home in Solivita and Tutas Towne Realty is having one of it's best years ever. The Storm has passed."
BB - God Bless you and TLW's sincere efforts to honor your contracts!! WWRRD?
Things happen and sometimes we have to go another route as a LAST resort, when all else has come short or failed. I'm so blessed by Respectable Rex's and Sassy Sadie's testimony! I'm touched and inspired and so happy it ended up working out for you both! Awesome!!!!
BB - You are the BEST ...for sharing your story, and keeping your head high while turning your hardships into a true success story. You are the BEST ...and you deserve all the success and happiness. The outcome was your reward for perseverance and a wonderfully positive attitude. You kept your eye on the prize, not even knowing if their was one. Congrats!
Thank you so much for sharing. Hats off to you two for getting through this and may you have continued success.