Hello one and all. This is not a meme post. Just thought I would throw that in here. Anyway, I wrote a post on Friday about NOT using your house as an ATM machine, since then I have had a couple more very interesting calls on how NOT to treat Real Estate. First, I want to mention, in case any consumers are reading today, BUYING A HOUSE IS SERIOUS BUSINESS! OK, I feel better now. I had to say that because my mind has just been boggled over the last couple of days with the foolishness that people exhibit when it comes to probably the single largest investment of their lives. Did you catch the key word? INVESTMENT. That means it takes time to accumulate equity, it will not miraculously happen in a few month's time. OK let's move on to the meat of my post.
I received a call early Saturday morning from Damien. He acted like I should know him, but since I was preoccupied, sitting in bed watching VH1 top 20, his name didn't register. Plus he had a strong accent and I'm a little hard of hearing. Finally, I was able to ascertain that he wanted to meet me in a couple of hours to place his home on the market. I asked him for the address so I could do a little research and told him I would call him back shortly to make an appointment with him. Reluctantly, I dragged myself away from VH1 and went down to my office to research Damien's property. I pulled up his address and the memories came pouring in.
Damien had actually purchased one of my listings five months ago! It was one of those memorable transactions that was actually a subject for one on my earlier post on ActiveRain. I remember sitting at the closing table thinking to myself that this was a foreclosure waiting to happen. There was no way these folks could afford this house. I also remembered me contributing $1,800 of my commission at the closing table to get this deal closed. It was a nightmare closing. His Realtor and Lender were cussing at each other and cussing at Damien and his family. It was real ugly. But I had to get it closed because my Sellers had already moved out and were waiting to close on another house. So I chipped in and we closed. BTW his Realtor and the Lender did nothing to get the deal closed. It all came out of my pocket.
I also remember, about a week after closing, Damien calling me to say they were moving in on Saturday but were not able to get the water connected because they were still in south Florida. Our water company requires you to be there in person to give them a $100 deposit. Well, always willing to help, I told Damien I would call and have the water connected in my name so it would be on for the weekend. They could switch it over on Monday. Three weeks later I had it disconnected and sent Damien a bill for $75.00, which he never paid. Anyway, to make a long story longer, I called Damien back on Saturday and explained to him that there was no way he could sell his house. I tried to get him to understand that he just bought it five months ago with 100% financing and the seller paid the closing costs. It would take him several years worth of appreciation to be in a position to sell his house and recoup his costs. He is upside down by about $30,000! I said to him, "I'm sorry but I can not help you, you need to talk to an Attorney. Oh, by the way, can you send me my $75.00?" CLICK Damien is gone. I guess Damien's next move will be a foreclosure. Another example of how not to treat Real Estate.
I just spoke with a lady this morning. I'll make this one quick, since I think you already get my point. Anyway, a real nice lady who bought a new construction house and closed in June of 2006. She is now behind on payments and needs to sell. The house she paid $220,000 for is now worth $205,000. And of course, she bought it with no money down, so still owes $220,000. The kicker is that she does not live in the house. She foolishly let a relative, of her sister in law, use her credit to buy this house. They promised her they would make the payments and refinance it in a few years. They've made three payments. It seems they can't make anymore. They don't really like Poinciana and the grown children that live in the house are unemployed, so they are moving out! "Sorry, we tried, see ya!!! Oh, did we tell you we are liars and we don't care if we screw up your credit?" No further comments, from me, are needed on this one.
I hear these same stories several times a week. What is wrong with these people? Has everyone taken stupid pills? Maybe I will change the way I answer my phone. Do you like this? "Hello, Tutas Towne Realty, Inc, so how screwed are you today?" Cut right to the chase.