Shar Giard, CRS, GRI, CDPE

Trust comes to us in various shapes and sizes…at different times in our lives and at times when we least expect it…

It begins when we pick up our newborn for the first time and hold them close to us…or hold our grandchild for the very first time…it continues as we feed and change that child…..then offer that hand as they rise to stand and take their first steps….and let go of the bike as they make their maiden run alone. Trust is quiet, reassuring, bold and calm. It appears when we are in need, when we think we don’t have a need and from both folks we know and total strangers.

A portion of my real estate business is dedicated to helping folks who need to short sale their properties, to preserve what credit they still have and begin a fresh chapter in their lives.

Most of the time the client is a referral and the first point of contact is by phone. They know why they are calling….but really don’t expect to get any help…after all they have spent months and months on the phone with their banks, filling out form after form, being promised that a modification is just around the corner…only to realize that the bank is never really going to help them.

So now they are talking to a real estate agent who might be able to they can help. My most important task in that call is to listen, encourage, and begin to develop a relationship with the caller….the beginning steps of trust…

If we have an appointment, I am careful to move through the interview very slowly, explaining every step of the process, answering every question and leaving them with an opportunity to think about whether they want to go forward with the short sale or not. For those who choose to go forward and work with me, that initial appointment is the most important part of the process…..it is during that meeting that we begin to trust one another….an important part of working on such a difficult process.

My most satisfying closings are those of clients who have completed a short sale…they are relieved, less stressed, able to continue with life under more normal circumstances-and they become my biggest fans, sending me one after another referrals.

This post is a submission to the ActiveRain / Adobe EchoSign Trust Contest. I could possibly win a prize. You can find out about the contest by clicking here

Every once in a while the busiest of agents needs a day off....so when an opportunity arose-I jumped on it. My son and his partner planned a trip to Puerto Vallarta for Thanksgiving and scheduled a layover day in Seattle, on their way back to home in Juneau.

I decided to fly from Portland to Seattle (the cost was less than two tanks of gas for the car) and spend the day shopping with them....I forgot that most of the Portland to Seattle flights are propeller planes....propellers like large rubber bands making alot of noise!! I departed at 7:00PM Wednesday November 30th, a cool clear night, giving me the chance to see all of the city lights-how awesome..

After a restful night, we headed to the mall, fortified with a trip to I-HOP....now I haven't been to I-HOP in years....they have so many kinds of pancakes....and serve pancakes with everything! WOW!

Shopping was great fun...but more importantly it was wonderful to have a day with the boys, as they are not coming home for the holidays.

I took a few business calls...three offers on one listing...a couple short sale inquiries...but nothing to interrupt our fun.

We departed for home at the same time..they to Juneau and myself back to Portland.....arriving back at 7:15PM on December 1st....refreshed, with much to tell with my husband about the day.

I was back at my desk at my usual 7:30AM time on Friday.....with new memories and a clearer mind for business...and thoughts about my next adventure......

They were in their mid 70's. He was a retired general manager for a Fortune 500 company. Their poor health and fixed income was forcing them to sell their 4600 square foot home on an acre, with a beautiful in-ground pool, in a gated community.

They were listed with another agent, about $100,000 over priced. A local real estate attorney referred me to them. He suggested that they short sale the property and get on with their retirement.

I met with them and they decided to cancel their contract with the other agent-he refused to do a short sale. Once the contract was cancelled, we listed the property as a short sale, for $100,000 less than the last price and they agreed to reduce the price by $25,000 every two weeks until we had an offer.

We had alot of showings, but the unusual floorplan made it hard to sell...there was one bedroom on each of three floors and only two full baths...in 4600 square feet!

About six weeks later, we had two offers...one for $500,000 cash...$169,000 less than they owed.

The sellers wrote a heartfelt hardship letter, we obtained a letter fron their doctor indicating their poor health and the offer was submitted to the bank. House appraised...yeah! Bank approval! yeah! The difference forgiven! yeah! the buyer's inspection went well...oh my goodness, we're almost there....buyer's signed, seller's signed...we recorded. The sellers moved to senior housing.

I really enjoyed this transaction...sweet and kind sellers, always thanking me for my time, admitting after we closed that they never expected the house to sell, let alone have the bank forgive the difference..nice when things work out!

Last week I closed the toughest , longest short sale of my career. The seller, a Portland 6th grade teacher, was pink slipped, due to the economy, and forced to leave the state in order to find another teaching job. They paid $565,000 and owed $565,000.

The house was listed on October 9, 2009 for $495,000. Four offers fell out before the five offer, for $315,000 was accepted and sent to the bank in May of this year.

The house had sustained major water/roof damage in December of 2010, causing the hardwoods to warp and develope mold. The buyer at his expense and risk had a new roof installed prior to closing, in order to obtain his financing.

The house closed and recorded on November 10, 2011, 25 months and 1 day after the listing. The buyer and his agent were awesome. Without their cooperation this transaction would not have closed. Shortly after the recording I called the buyer's agent's manager and sang his praises.

We celebrated this Tuesday at our branch meeting with pastries from a local restaurant and sparkling cider!!! Monday I will head back to a desk full of short sale files with eagerness to complete the next!!

If you'd like to purchase a Short Sale in today's market, it is imperative that you make sure your buyer agent understands the Short Sale process.

Before you preview Short Sale listings here are a few things that your agent needs to share:

1) Short Sales houses are sold 'as is'...no one is going to make repairs before you close the transaction....so if you are a FHA or VA loan candidate, be sure that the house is not is such disrepair that it will not make it through the FHA or VA process. Some conventional lenders may also require repairs.

2) A Short Sale is going to take a lot of time....it is not a 'short' sale in terms of time...many Short Sales will go beyond 120 days...some less...many more than that!!! If you are not willing to wait for bank approval, don't begin the process!

3) There may be fees that the bank will not pay....delinquent Homeowner Association Fees, recording fees, tax prorates and judgments and liens on the property. Each Short Sale is approved based on what is owed on that property alone...including additional lienholders.

4) The bank 'may' pay some buyer closing costs and pre-paids...but they probably not pay ALL of the required closing costs. Be sure you have what is needed...and where it is..cash in the bank, a loan from a 401-k or a gift from a family member...just be sure that you know where ALL of the closing costs and pre-paid expenses are coming from... cash in a sock won't work.

5) Your offer needs to be one that the bank will approve...ridiculously low offers are a waste of your time as well as the Seller...it may harm the Seller's chance of avoiding foreclosure, as it eats up the time prior to the foreclosure sale.

These are just a few of the short sale facts that yout buyer agent needs to share with you...if your agent does not understand Short Sales, then find someone who does....many agents have completed designations, like CDPE (Certified Distressed Property Expert).

BE SURE YOU ARE GETTING THE ASSISTANCE YOU DESERVE WHEN MAKING A PURCHASE IN TODAY'S MARKET!!