I remember the day that Orlando and Aminah were married. I have always admired them because they are young, hardworking, educated, and they don’t care what the Joneses do because they are focused on their plan. Buying a home and creating sweat equity for themselves was also a part of the plan.

We have been in a contract on three different properties in Bronzeville and we went to the closing table once. Every property came with its own set of issues not to mention city liens that the City of Chicago wasn’t willing to subordinate first lien position on which is why we didn’t close.

No matter what the obstacle my clients never gave up on their vision. Ironically with every property there came huge price reductions. The first property they were willing to spend $255k, the second property $202k, and finally the one they bought was $162k and the sellers paid 6% towards their closing cost. That is a major savings.  My clients will have to wait several months before they can move in due to the renovations but they will make it through that hurdle as well.

The current market will make the next set of millionaires. You don’t want to kick yourself in the butt because you set on the fence.

I just came off the road from what I profess to be the best road trip I’ve taken. My road trip had been scheduled for months now and I was charged to be able to go to Cedar Rapids, Iowa. The hotel was directly of the expressway and for the first time in a long time I was able to fill up on less than sixty dollars.

Cedar Rapids has set an example for what a true Realtor® should strive for: Education. I was shocked that 100 of their 705 members took the time out of their schedule to come and learn about Short Sales and Foreclosures. That is over 14% percent of their members. Absolutely phenomenal.

While preparing myself to instruct my course “Short Sales: The Result of Foreclosure” I soon learned that Iowa isn’t plagued like the rest of the country with foreclosures problems. They are ranked 38^th in the country for foreclosure filings.

I always learn from my students and I was shocked to find out that they are currently selling 60% of their listing inventory in a little over six months. Realtors® are still making money in Iowa. Not to mention that when a short presents itself they now how the skill set to service that client.

I will be going back to Iowa because they have already told me that the class was excellent. Take a look at some of the comments:

It was wonderful to be educated by a bright and talented individual who knows her stuff!!  My team of four were present and we all enjoyed your presentation. Thanks so much. Now comes the tough work which is us following the instructions. We will succeed!  NV

I really enjoyed your Short Sale presentation in Cedar Rapids last week — you kept the material interesting and I’d highly recommend that anyone attend. LF

Your presentation was perhaps the most professional real estate training that I have experienced.  It was content rich, and well organized and presented. GW

To learn more about foreclosures and short sales please visit us at www.shortsaleresultsnow.com and if you’re looking to buy or sale real estate please visit us at www.markilemons.com.

Everyday, I receive phone calls and emails from REALTORS® inquiring about the delays in the contracts they’ve presented on properties in foreclosure or an REO. REALTORS® are grounded in the belief that “Time is of the Essence.” This philosophy simply means that REALTORS® and their clients will perform within a time limit specified by a contract or within a reasonable time if there isn’t a specific date for the performance outlined in the contract. I wish that this concept was followed by a world now inundated by loss mitigation specialists and asset managers. I do ask REALTORS® to use empathy and not judgment when dealing with lender employees because they are overwhelmed by the abundance of new foreclosure filings and the fact that some employees are already handling up to 1,200 files.

Real estate is a fast-paced world full of contracts, negotiations, and going to the closing table. Finally, REALTORS® can take a long lunch and a walk in the park because you might have to wait months just to get an executed contract.

To paint a realistic picture, I have a short sale listing that was submitted to the lender via fax and overnight mail on March 7. Three weeks had passed before the lender acknowledged receipt of the short sale package. The lender ordered two Broker’s Price Opinions and informed my client on April 22 that they wouldn’t pay for a survey, termite, zoning certification, water certification, or any outstanding water bills. My client, the attorney, and I have had weekly communications with the lender. On May 1, we received a counter-offer to the contract and the lender wanted a response on or before May 5 and they wanted the purchaser to close by May 31.

Representing the buyer doesn’t make for an easier transaction.  I love working with buyers, and I use the skills acquired through the ABR designation courses to attract buyers looking to purchase short sale and REO properties. Distressed properties often have deferred maintenance or have been vandalized. To ensure that clients can close according to the terms of the contract, it’s important to have them preapproved by a purchase-rehab lender.

Taking extra steps won’t guarantee you a smooth deal. One of my clients has been pre-approved and has saved her money to purchase a home where she wants to create sweat equity. We have submitted six contracts over the past two months. On March 22, we submitted a contract for a property in Englewood. I faxed the listing agent twice, emailed her four times, and called a half of dozen times. Six days after submitting the offer, we finally received word that there were other offers (cash) and that the listing agent was waiting on a response from the lender. Much to my dismay on April 21, I received a phone call from the listing agent who stated that the other deal didn’t work out and that she would send me the lender addendums. My client was livid because when we did receive the addendums on April 22, they stated that she needed to sign everything and submit with a cashiers check in 24 hours. She decided not to submit a new offer with the addendums because she felt like she was second choice and she and the lender were on an uneven playing field.

C.O.S.N.O.P (Concentrate on Solutions Not on Problems), now is the time to revisit an old skill set (initial buyer and seller consultation) in order to have a successful transaction. First and foremost, set a realistic time frame for the buyer and the seller before entering into an executed contract. Commissions are negotiable and should be discussed with all parties. Listing agents need to discuss commission with all buyer agents prior to the exception of a contract because commission will be determined by the lender and not the homeowner with whom the REALTOR® has the listing agreement. Buyer agents should draft sales contracts that allow their buyers to cancel the contract if they haven’t received a response by a certain date or they have the right to rescind the offer. Remember, listing agents are waiting just like you. Short sales and REO aren’t for everyone but, patience will be the best skill set to develop if you plan on doing business in this new niche.
Marki Lemons, CRB, CRS, ABR, ABRM, CRMS, MBA, is a member of the C.A.R. Board of Directors and an instructor at the REALTORS® Real Estate School. She is a Certified Residential Broker with Rubloff.