Motivational Power Quote
Stay Ahead of the Curve
“You can’t just ask customers what they
want
and then try to give it to them.
By the time you get it built, they’ll
want something new.”
Steve Jobs, was the co-founder of Apple
As I see it . . . . . . .
Stay ahead of the curve
As we can attest to customers demands
are changing and market conditions are evolving.
As business professionals we have to
understand the paradigm shifts in the market to stay ahead of the curve and
remain relevant.
One of the largest area’s in the
shifting market that continues to create problems is the distress sales.
There are more and more problems with
title reports that are turning up after the closing. One on the issues is the
amount of the exceptions that are on the title insurance as a result of the
break in the titles.
In a recent case several months after
closing of a distressed property a credit card lien for $20,000 showed on the
home when the new buyers was in the process to refinance their home. Nobody
wanted to take reasonable for resolving the lien and the new buyer had to pay
an attorney to clear up the issue.
There is also major issue that is
becoming a real problem for sellers of short sale properties.
If the seller sells their primary
resident where the sales price doesn’t cover the mortgage it creates a deficiency
at closing. Here’s the problem though December 31st of 2012 the
lender will issue a 1099 to the seller. They will not have to taxes on the
amount of the deficiency if the short sale is their primary residence. Here’s
the catch the lender has 5 years to file a deficiency judgment against the former
homeowners.
The lenders are now selling the rights
to lien to the properties much like they have been in selling the bad credit
card debt to third party collection agencies.
Here’s the issue if a lien is filed
against the former homeowner that will prevent the former homeowner from
purchasing a new home until they paid off the lien.
If grant money was used as part on the
purchase price to buy a home being sold through a short sale or becomes a foreclosure.
The sale doesn’t release the buyers from the obligation to pay the grant money back.
To stay ahead of the curve on the sale
of distress properties both the buyers and sellers need a real estate attorney
to represent them for their future protection.
©2012 Lou Ludwig, Sales and Management
Consultant, Success Coach, Speaker, Trainer and Author
