Dispatches From The Displaced: A Short Sale Realtor Sheds Light On The Housing Crisis

Are you facing foreclosure, or have you already lost your home? Share a story of how the housing crisis has affected you by emailing [e-mail].

Yesterday we heard from Jitendra Kumar, whose temporary financial troubles put him $11,000 in debt. Situations like Jitendra's put 10,000 people in foreclosure every day.

There's another side to the foreclosure crisis: realtors trying to save families from losing their homes. Jackie Crockett is a short sale realtor in Fairfield, CA who has seen the hard times faced by numerous families. Despite her own health problems, she considers herself lucky:

I was one of the first in our area to start listing and negotiating short sales over 3 years ago and helping various clients with loan modifications and 2nd lien write-offs. Unfortunately, the horror stories are never-ending. Plus, we work 4 or 5 times as hard, for about 1/6th of the income. Those of us handling short sales (versus REO - bank owned properties) are really not in it in for the money, but for our community.

For every short sale listing I've had, I've submitted an average of 7 offers, with only a 50% closing ratio. That is higher than most. The average is 3 out of 10 short sale listings will foreclose before a negotiator finalizes an acceptance. I've had homes ready to close, clients ready to sign, and had the homes foreclosed out from under us. The worst part is, the home usually sells for well below the lowest offer we had submitted.

None of this makes sense. It is frustrating for us as realtors, and heartbreaking for our clients, their families and our community. These are good people, hardworking, caught in a vicious cycle, with really no fundamental understanding of where to turn, who to talk to. When even the lenders and bankers don't know what to do, or how to proceed, what chance do "regular" homeowners stand?

The lenders and bankers treat us realtors as if we are the enemy when all we are trying to do is stabilize our communities by keeping folks in their homes, or getting people into these homes as quickly as possible. It's worn me out mentally and physically. I am preparing for a kidney transplant - my husband is my donor - and I've put if off for almost a year now because I felt so many of my clients needed help more desperately. For all that my husband and I are facing, all the uncertainties, I know we are luckier than most and for that I feel so blessed.

Due to the nature of my business, I was in a unique position to take care of our own personal finances when my health started to deteriorate. We very easily could have been one of the statistics, losing our home due to skyrocketing hospital bills, dialysis costs, and lost income. I recently negotiated a settlement with my own 2nd lien holder who will take a very small payoff to "release" the loan. It took months of negotiating, reams of doctor's bills, hospital bills, tax statements, pay stubs, hardship letters, etc., but it was well worth it. Of course, using money from our rapidly dwindling 401 K seems to negate some of the euphoria. I've also called every credit card and set up various payment plans, and auto debit payments that earned us huge interest rate reductions for as long as we need while we're recuperating, and both back on our feet.

I could go on and on about all the pets we found locked in homes when families would leave. Neighbors would gasp and ask "how could people do that?" But some had no choice. Those losing their homes are mostly families with children, some were elderly folks on fixed incomes with no where to go. Pets ended up being the least of their problems. Needless to say, we have 5 rescued cats - we love them and hope their owners somehow know they are well and loved.

Are you facing foreclosure, or have you already lost your home? Share a story of how the housing crisis has affected you by emailing [e-mail].

And sign up here to receive updates when we publish new stories.

Find out more about Dispatches from the Displaced, HuffPost's Eyes&Ears series of reader-submitted foreclosure stories.

Comments

[Mark1611]

I really do not understand the love this person who does short sale. Yeh, I feel bad for the health probs but thousands of agents do short sales. They do so for the money because there is no other business other than REO. REO can be tough to break in to so agents turn to short sales. Unfortunately, an inexperienced short sale agent will not help - you can count on the property to be foreclosed because the short sale is a very sensitive and complex transaction. Funny how REO is being demonized here.

[jackieucb]

I'm the REALTOR mentioned in the article. And I want you to know, there may be thousands of REALTORS doing short sales, and if they don't know what they are doing, it can be a real problem. BUT - there are many of us that are very experienced, at the mercy of inexperienced folks working for lenders, where one hand has no idea what the other hand is doing!
Most of us are not making the money comensurate with the work . We (some of us) are not in it for the money.
I don't think I demonized REO realtors; if I did it was not intended. But there are many, MANY REALTORS that will not even show short sales to their clients, due to the length of time involved, and diminished commission. That is doing a disservice to both their clients, and the community. So, please don't paint us all with the same brush, and take me at my word. I don't expect your pity for my health problems; but I would hope you have some compassion for those who are facing such devastating loses, no matter what the reasons.
I work REO's also - those are not nearly as emotional or as draining, the owners have already faced foreclosure, and the homes are usually vacant.

[chasmader]

I am a "short-sale" Realtor as well, though by default. I have been working with folks who were in some cases tricked into mortgages they did not understand. When I say did not understand, I mean transactions negotiated in languages other than English (in my market it's Chinese and Spanish) with the contracts written in English. Yes, this is against the law in California, but that didn't stop anyone.

I also believe there are tremendous opportunities out there now for responsible first time buyers. Yes, the escrow can take many months, but the trade-offs are worth it (getting a home for pennies on the dollar). So, that being said, if your Realtor is not showing you shorts or REO's, fire them and work with someone who will.

[thcrock]

This is great information. Thank you Jackie for sharing your knowledge, and your compassion with the rest of us. Too bad more lenders don't hire people like you to "work" in training their own employees. Things may go more smoothly with someone like you helping/leading the banks; someone who has spent time with REAL Americans, those out in the field, the ones who are suffering. Thank you.

[jackieucb]

For readers uncertain on who to turn to; the worst thing is to do nothing. You can start with the U.S. Department of Housing and Urban Development's web page, Guide to Avoiding Foreclosure @ http://www.hud.gov/foreclosure/index.cfmg.
For information on options regarding short sales, principal reductions, and/or loan modifications; any experienced licensed REALTOR or broker can help. Most Century 21 offices have teams dedicated to working with homeowners in need of these services. Call and ask to speak to a REALTOR experienced working with loss mitigation departments.
One last note - in areas where homes have lost value, contact your local County Tax Assessor and request a tax reassessment. Go to your County's Tax Assessors web site to find out cut off dates and download their Prop 8 Tax Reassessment forms. A good place to start is the California Property Tax Assessment Resources page @ http://www.calproptax.com/
Any local REALTOR can help you determine a reasonable market value and provide comparable listings, as well as find your APN # (all public records) Also, beware of bogus "property reassessment" letters. These letters are nothing more than a scam, to do what you can do for yourself. In the past month, our home has received two of these scam letters, both asking $179 to do what I have already done.
If you'd like more information, email me directly. Remember - you do have choices, and you are not alone. [e-mail] / Century 21 Distinctive

[chasmader]

An excellent FREE resource is www.HopeNow.com. I would suggest that any struggling homeowner start there. These people are there to help, and their help is free of charge.

[jmby]

She sounds like a woman with her head and heart in the right place. Today, I called the real estate office that's handling the sale of a foreclosed home on our street and asked them to remove a "Foreclosure" sign from the top of the "For Sale" sign they placed. Three other houses on our street are for sale at market rate and the owners have had a time getting them sold. A sign broadcasting a foreclosure in the neighborhood is not helping them sell at market value. I was asked if we had a HOA that banned such signs (sounds like they've been through this before in other neighborhoods), but finally was able to leave the agent a message, explaining that our neighborhood is working hard to keep home values at a decent place, and asking that he understand and remove the smaller sign. He called later and ranted on voicemail about how it was his right to leave the sign there since in his opinion he didn't think we had a legitimate neighborhood association with sign laws, but he did take the sign off later in the day. He was really a thug - actually called back after I left a sincere message of appreciation for his understanding and for taking the sign down, and he yelled at me some more. I thanked him again and hung up. If that's what folks facing foreclosure are dealing with, my heart bleeds for and goes out to them.

[jackieucb]

Unfortunately, even with the removal of the "foreclosure" rider attached to the For Sale sign - REALTORS and buyers will know the status of the home whenever they pull comparable listings for the area. It matters not whether there is even a sign in the yard, all the information is on the local MLS and all real estate web sites such as realtor.com, and other public sites.
I apologize for the rude manner in which you were treated. I promise, that is not the way most REALTORS treat most callers - we never know when any phone call may lead to a client. You should call the Broker that the rude REALTOR works for and voice your concerns, and let them know how their realtor is treating a neighbor to one of their listings Just think - what if another REALTOR shows that home, and happens to ask you about the neighborhood in front of a potential buyer? What would stop you from making some off comment remark, with hopes of blowing a sale?!?!! You deserve better. I apologize again for the rude REALTOR.

[Mark1611]

" explaining that our neighborhood is working hard to keep home values at a decent place" - Home values are still artificially high. If they stay where they are now, normal people will not be able to get into the housing market. And like the other person said, every buyer will already know which one is a foreclosure because it will show up in the property search for the neighborhood describing it as such. Foreclosures are a good thing for the economy. Once home prices have corrected themselves, people will be buying again.

Truth is, people are buying now. They are paying too much because values are still 30-50% too high, at least in California. A home price should be a multiple of this day and age income but values are still many multiples too high. You say three other houses are for sale at "market rate" but can't be sold. Why? They are not for sale at market rate, if they were they would be sold- they are being greedy. Look up prices around 2000-2001, once we hit those levels they market will have been corrected and they will start to again appreciate. The sooner we get there, the sooner all this mess will be history.

[TrueIndy08]

Short sales are horrible... my husband and I have been looking for a home and we were told to steer clear of short sales.... takes months, and then the house could still be foreclosed on anyway! They need to come up with a better system!

I wish along with her expertise, she would offer these people her financial saavy. She too was faced with very difficult, hard times, and yet with persistence, hard work, and common sense, she worked her situation into a manageable one.

Thank you Katie.... more people need to look at you as an example

[Eres]

Katie, you are a shining example of the decent, humane people we can choose for one another and in our communities in this crises. I hope your efforts inspire others to do the same.
Kudos to you.

[4everdem]

The people who left their pets in homes should be charged with neglect. You can't take them to a shelter or call animal control?

That is does not deserve sympathy. It deserves outrage.

[TrueIndy08]

you know! I agree.... some people should just not be pet owners

[jackieucb]

In California, un till recently, we could not enter a home to remove a left behind pet since it was considered "personal property". Even animal control was prevented from doing so - that was changed, thank goodness. I completely understand your outrage - but until you face losing your home, no place to go, in some cases having to break up families, it is hard to understand the desperation some people face.
I didn't mention it - but larger livestock is an even bigger problem (no pun intended). Horses, goats, pigs, and all other forms of farm animals have been left to fend for themselves when property owners are desperate and have no other option. I suggest for those of you who feel outraged, consider volunteering or donating desperately needed funds to local animal shelters, they are overwhelmed with lost and abandoned pets.

[MoMick]

Right . . . you lose your home, you go stay with various relatives (if you're fortunate enough to have some nearby) and you get whacked with a summons for neglect of an animal.

I agree with the sentiment that locking up a pet in a house and walking away is not a good thing, but is punishing the newly homeless a real answer?

[werrit]

Thank you for sharing your story. I'm getting very sick of all the CAPS LOCK RAGE that so many people engage in--spitting vitriol at homeowners, calling names, and so on. As you so clearly explain -- when professionals in the business can't figure out how to legally and officially "do the right thing" to keep people in their homes, how can untrained homeowners expect to do better? It's a losing situation for everyone, not a chance to gloat.

I applaud you for the work you're doing and I wish you the best.