We all know that time passes quickly, but every so often we experience a situation which really brings this point home.  As I opened the door to my office today, she was already there.  Smartly dressed in light weight spring coat, she looked relaxed and smiled brightly as I walked in.  It had been years since we had seen each other & there was so much catching up to do.  After a quick tour of my new office, we decided meet for lunch at a local Italian restaurant.

As we caught up on work & life, she said..."I read your blog about your oldest son.  I can hardly believe he is a senior now?  I remember having lunch with you at the Chinese restaurant when he was nine!"  That was nine years ago!  Was it possible that Sarah & I had not been to  lunch for almost 9 years? Yes, we had touched base occasionally during that time but somehow  we had lost touch professionally.

I had met Sarah in 1995 when I first started my real estate career.  One of my first clients had been pre-approved for a loan through a senior mortgage officer at the brokerage company she worked for.  When he decided to chuck the whole mortgage business aside and return to his first love...truck driving...Sarah was his recommended choice.  The real estate market was just beginning its' boom cycle & Sarah quickly moved up the ranks and then, after a couple of years, out the door to another bank.  Having lost 2 loan officers in the same company in a period of 3 years, I was tentative about following her...and over time, we both moved on.

During lunch, we reminisced about various people who had been a part of the mortgage company, which had now been sold.  One of the owners was now a stay at home mom with 2 adopted kids, & Sarah herself had married and become the mother of a delightful 3 year old daughter.  Although so many years had passed, there was instant connection based on mutual respect & regard for the bond of professionalism we shared.

It was at her company that I had learned the basics of financing which would be so helpful to my future clients.    There was never any doubt that the pre-approval  issued was anything less than a valid promise to fund the loan once a suitable property was found. I never felt that my questions were unimportant.  I was certain that my clients, regardless of who they were or the type of home they were purchasing, would be given a fair and honest evaluation when applying for a mortgage.  Closings were uneventful, the paperwork arrived at the title company well in advance of the closing and clients were not surprised by unexpected costs. In the context of what has happened in the sub-prime markets recently, this type of service remains a shining example. 

I wondered why it had been so easy to loose touch. I think it was a function of simple neglect and the distraction being busy. We used to sing a simple song as kids.  It went like this: " Make New Friends, but Keep the Old, One is Silver & the Other Gold. " I was reminded today that although we will all make new friends and connections, it is important not to neglect relationships which have stood the test of time.   Meeting with Sarah today reminded me of the gold that is present in well established professional relationships. 

• Gold is Rare.  Established professional relationships built on solid foundations of mutual regard and respect are not easy to come by.  They are are rare, appreciate them!

• Gold is an excellent Conductor.  Great professional relationships are able to propel your business to the next level.  Working with solid, honest ethical individuals tends to lead to contacts who possess these same qualities.  Examine the kinds of contacts your professional relationships are generating.  Are they good Conductors, creating Connections which are beneficial and healthy? I can see that connecting with the right people early in my career has had an incredible impact on my business, and I Am Thankful.

• Although Gold is heavy, it is also very soft & malleable.  Solid professional relationships last because they can weather the changes & challenges which are a part of life circumstances....They can carry the weight.  But, they can also adapt and are malleable and able to conform to fit the new needs that situations dictate.  Don't be afraid to explore new ways of relating to old friends and professional contacts.

• God does not tarnish.  A strong professional relationship can whether the test of time and allow reconnection in new and interesting ways.  This is why although so much time has passed, Sarah & I reconnected & reaffirmed the importance of keeping in touch.  Reach out & re-establish connections which proved their worth in the past.  Good relationships are not easy to find.

Sometimes gold is hammered into a very thin gold leaf...but in-spite of the fact that it is spread thin and there is not much of it, it retains incredible value in a wide array of applications including being utilized in jewelry & electronics.  This is true in solid professional relationships as well.  As we conversed over a leisurely lunch, I learned about some very innovative loan construction products that Sarah has become a specialist in.  She in turn is coming to a Blogging Seminar that I've invited her to.  So mine your professional relationships for the stuff that lasts...for even just a little bit of gold can go a long, long way!

For further information about the properties of pure gold visit:

The Properties of Gold

 PBS Series: The Gold Rush

Sarah Baar is an Experienced Senior Loan Mortgage Officer with Founders Bank & Trust in Grand Rapids, Michigan.  She services a wide variety of loan products and Specialises in Construction Financing.  Contact her at sbaar@foundersbt.com for all you mortgage and lending needs.

Efficient Spring Time Open House Search for West Michigan!

 Spring is around the corner & snow piles are rapidly melting in Grand Rapids, Michigan.  Now is the Time To Buy in Grand Rapids, Michigan!  Great Inventory levels, with more New Listings appearing daily, PLUS Buyers eager to get outdoors to enjoy the sunshine and emerging warmth make Open Houses an Excellent Low Pressure Way to Explore the Excellent Investment opportunities in Grand Rapids, Michigan.

Here Are A Few Simple Pointers To Maximize Your Time At Open Houses:

1.  Utilize this Site for Up to the Minute Information on Open Houses

2.  Map your  Tour utilizing the Mapping Function on every listing to conserve Gas, Energy & Time.

3.  Take items to occupy your children if they will be accompanying you on tour so you can concentrate

4.  If you are working with an agent, take their card to give to the real estate agent so you can preview homes without being pursued as a "live prospect".

5. Take A notepad to make notes on each listing

6. To Get Additional Tips on Home Buying....

Click Below to Search For Open Houses in West Michigan

Easy Search forOpen Houses in Grand Rapids, Michigan

Easy Search for Open Houses in Ada, Michigan

Easy Search for Open Houses in Allendale, Michigan

Easy Search for Open Houses in Byron Center, Michigan

Easy Search for Open Houses in Caledonia, Michigan

Easy Search for Open Houses in Cedar Springs, Michigan

Easy Search for Open Houses in East Grand Rapids, Michigan

Easy Search for Open Houses in Grandville, Michigan

Easy Search for Open Houses in Hudsonville, Michigan

Easy Search for Open Houses in Jenison, Michigan

Easy Search for Open Houses in Kentwood, Michigan

Easy Search for Open Houses in Kellogsville, Michigan

Easy Search for Open Houses in Lowell, Michigan

Easy Search for Open Houses in Wyoming, Michigan

To Find Out More Information about ANY of these Communities, Please Contact Audu Real Estate for a A Free E-Neighborhood Report with Valuable Information about Schools, Recent Home Sales, Types of Homes, Demographics & Rental Rates.  We can compare up to 4 different Communities.  Contact Audu Real Estate for All Your Real Estate Needs!  Just One More Value Added Service from the Professionals at Audu Real Estate.

© 2007 Audu Real Estate  All rights reserved

Worrying, Wanting & Waiting...Overcoming Emotional Hurdles During A Home Sale.

From time to time, I work with clients who are having a really difficult time leaving a home.  Sometimes, it is a home that they have lived in for decades which holds a lot of precious memories.  At other times, circumstances have changed; perhaps a job transfer which necessitate a move.  It is a really difficult thing to be dealing with the normal stress of showings and a move and also wrestle with the fact that deep down inside...you're not really ready to leave...just yet.

Over the years as I've counselled with my clients, I've realised that there are a number of reasons why people struggle to let go of a dwelling...even when they know they must.  One of the biggest issues is fear of the future and the unknown.  Other times, it is the feeling that by leaving, they will be separated from special moments that were a part of this special space they call "home".

Here are a few simple suggestions that many of my clients have found very helpful. 

Practical Solitude

Set aside some time to alone & quiet within your home...quiet your heart, be still.  Turn off the TV, listen, hear and re-live special moments.  Look, really look at your home the way you would look into the face of a dear friend.  Relish the moments that have been shared, the laughter, the tears, the good times, the bad...Listen to hear things that may still need to be resolved.  In the stillness you will hear this as well.  Take note

Thanksgiving

Express gratitude outloud.  Yes, these walls have heard a lot of things during your time within them. Why not your thanksgiving?  Thank out loud for the goodness & provision and shelter that your home has provided you.  Thank out loud for the many friends and family members who have found solace, refuge and friendship within it's walls.  Thank out loud for the difficult lessons learned and the trials you survived.  Thank out loud that you and this home exist...many homes and people no longer do. Thank outloud that your home will soon be transferred to new owners who will be the beneficiaries of the shelter your home has faithfully provided.

Release the Blessing of Peace

A final step is to release the blessing of peace.  I suggest that you go through each room, thanking silently or audibly and then releasing God's peace into the space in preparation for the new owners.  This can be a wonderful time to envision the blessings that you desire for the welfare of those who will purchase your home.  Different blessings can be released for different areas.  For instance in the kitchen, you can release wholesome goodness in the food that is prepared & bless this center of life to be a place in which the family or individual experiences the joy of friendship and satisfaction. Remember we all reap what we sow.  What you are doing for others will eventually be returned in some fashion back to you.

Many have found these few simple steps to be very helpful as they prepare to move.  Even if it is not a difficult move emotionally, this process can be extraordinarily enriching.

The Case of the Disappearing Realtor.

I talked with him yesterday morning to tell him the news.  His offer was largely accepted, just a few slight modifications. Certainly not anything we coudn't work through.  Closing was scheduled for next month.  

By the end of the day, I'd received a call from his friendly title rep, offering to pull the commitment and help in any way possible. Next there was a call from the appraiser asking for access to the home to complete the appraisal.  I was impressed!  This was taking efficiency to a whole new altitude. 

But something was a little off...I hadn't received written notification that my counter was accepted.  Realising that his clients may have been at work and that he may not have been able to get the signatures, I waited.  After a couple of hours, I placed a call into the agent. 

The message on the cell phone instructed me to state the purpose of my call.  So, I left an upbeat message confirming that I had just got a call from the title company to order title and from the appraiser to do an appraisal.  But, when was he planning on doing inspections...or perhaps, they had decided not to do them.  Please call!

A couple of hours later, I received another call, this time from the appraiser, "Lola, I just called you a few hours ago to set up the appraisal, well the lender just contacted me and said that I needed to wait a couple of days.   I'll get back to you when they decide to reschedule it.  I hope I haven't caused too much inconvenience."

I place another, more urgent call to the Realtor. No answer.  I leave a message..."Please call me, I've had an appointment for an appraisal scheduled and cancelled by the appraiser, is there a problem.  Furthermore, the paperwork you promised to forward over by this afternoon is not here.  Have your clients changed their mind?"

My next call; SOS to the Mortgage officer.  Fortunately, he IS picking up his phone.  "Yes, Lola, I'm sorry I made a mistake.  I didn't realise that the buyer had not signed the purchase agreement before I ordered the appraisal"  Huh??  Since when do lenders order appraisals without a fully executed agreement...he simply didn't notice???

My suspicion meter is flashing Red!  I place another call to the real estate agent.  Now, I'm sure there's a problem.  I know my number on caller ID is being studiously ignored.  Trouble brewing...yep, he's never been hard to get a hold of before.

Finally, this morning, I reach him.  My Disappearing Realtor has now materialized.  He sounds very tired.  I inquire cheerfully..."How are you?"  He responds, "I haven't been doing very well, I 've been working on this deal until late last night and it doesn't look good"  I'm not really surprised, I just want to know what has happened.  Apparently, a fully qualified buyer has suddenly become unqualified because their lender went out of business.  Just like that!  The wife really, really wants the house and is prepared to sacrifice to get it, but the payments have now increased 20% and they''re adjustable to boot! 

Then the Realtor said the following:  "Lola, I couldn't do it, I couldn't allow them to get into something that I know they won't be able to afford and then loose it.  I just couldn't encourage them to move forward on a deal that would not be good for them even though the wife wants it so badly.  They just can't afford the payment"

Wow!  I am witnessing the emergence of sanity in Sub-Prime Lending.   I say "Thank You."  because I know that no commission is worth doing something that we know is not going to be good for another person.  As we talk,  it becomes apprarant that this Realtor is fairly new to our industry.  The company which had approved the loan was New Century Mortgage Company which was the subject of a very highly publicized shutdown on Friday.  Everyone is trying to keep a distance...witness article by New Century Bank.  The buyers had never been informed that their loan approval was now invalid!

I talked with him about some other options to explore like the FHA loan program.  His lender had never mentioned this to him.  He thought it could only be used for first-time home buyers.  After, giving him a contact for an experienced loan officer that I have worked with, I called my client to explain what had happened.  Fortunately, we were not at the closing table like some buyers may have been on Friday, only to find out that there mortgage was no longer valid. 

We're taking this one day at a time.  We'll see what happens, but I'm so thankful that my encounter with the disappearing Realtor, finally revealed a compassionate individual who is wrestled through some important decisions about integrity as a professional in the real estate industry...and he chose the high road.  As we concluded, I said to him, "You, know even if this home purchase doesn't work out, all of us WIN because we're seeking to do what is right"

If you find yourself caught in this situation, here's an excellent article by Ken Stampe entitled:  100% Financing is alive & well, Just Not For Sub-Prime Lending.  This article offers a number of loan vehicles and options to look into if you have clients in this situation.  Please remember that there are all sorts of reasons that people may consider sub-prime lending, so make sure that you have an expert evaluation from a reputable lender to determine if this is the best or only option available to a client.

If you're a Buyer thinking about purchasing a Home which may be in foreclosure due to the Sub-Prime Lending Crash, read this article entitle:  So You Want to Buy a Foreclosure...10 Power Tips for Success!

Also, talked with Brandon at First Place Bank in Holland, Michigan today.  He indicated that within the past few weeks, 3 big names in the Sub-Prime industry have "flamed out".  They are Argent, Option 1 & New Century.  According to Brandon, these companies were under funded and were doing loans which were being offered to very marginal buyers at adjustable rates.  With so many of these loans in default, there has been a significant tightening in the money supply.  So, the lesson is...investigate beyond the paper that says a buyer is pre-approved.  Find out the source of the funding!

*Correction & Update- 3/17/07  Ken Stampe who wrote the article I referenced above was kind enough to point out a correction through a comment on my Blog on Active Rain.  Ken writes: To be accurate, Option One is still in business only they have lowered their maximum loan to 90% of the sales price for their sub-prime programs. Argent is also still taking sub-prime loans although at 95% of the sales price. The subprime lenders offering 100% financing still are certainly fewer but some are still out there. The real question is will they be out there tomorrow? Or next week?

Thanks Ken for pointing this out.

Our local market in Grand Rapids, Michigan has witnessed an unprecedented increase in homes going into foreclosure.  This is not unlike many areas of the country. 

If you're considering a purchase of a  home that is in pre-foreclosure or in the redemption period during of a foreclosure it is important that you are aware of some important situations which will impact the process and /or your ability to successfully execute a transaction.  This list is not all inclusive.  Please be advised that consulting with a real estate professional with experience in this area is highly recommended.

 Do not expect things to be Normal.  According to the wonderful writer Erma Bombeck, "normal is a setting on a dryer".  That being said, there are a number of  aspects of the process which you are fairly likely to encounter, so being prepared or aware of them is important. Here are some "must know tools" for success! 

1.  Remember that "time is of the essence".  In a redemption period of 6 months, the option expires at 6 months...period!  It is rarely extended.  Investigate how much time you have for the redemption the period of the home you are planning on purchasing.  Your agent can check this information with the Registrar of Deeds office to see when the deed was sold at auction.  Make sure that if your offer is accepted, there will be enough time to actually close on the transaction before you spend money on things like inspections and appraisals.

2.  Now, be prepared to be patient.  Do not be surprised if the bank seems to take forever to come to a conclusive decision regarding your offer.  They may be utilizing the services of a "committee" which meets somewhat infrequently to decide the merits of offers that come in on houses they now own by default.  When they do make a decision however, they will usually expect YOU TO HURRY.  Be prepared to be given a very short time to complete the transaction soo....

3.  Have Your Ducks in a Row!  Make sure you have a Valid Pre-approval letter.  You may be asked to submit to a another pre-approval through the bank's approved lender.  Normally this will simply be used to verify that you are indeed qualified to proceed with the purchase.  Have your inspector, lawyer, accountant, surveyor and whoever else you think you need ready to go as well.  There's nothing more frustrating than having 10 days to complete a transaction and being unable to get an inspector you like and/or trust to complete a home inspection.

4.  Inspect the House!  Thoroughly!  Do not expect to get a seller's disclosure that has any information if the home has already been foreclosed on.  If the home is in the pre-foreclosure stage or redemption period, you are more likely to have access to a Seller's Disclosure.  However, do your own due diligence.  I can't say it enough....Inspect the House thoroughly.  You cannot be assured that there will be significant assistance with repairs, so it is important to know what you are dealing with BEFORE you make a final decision on an offer.

5.  You may have to Sign Some Strange Forms.  If you've bought a home before, you are probably familiar with the West Michigan Regional Purchase Agreement.  In addition to the purchase agreement, many banks will also require you to sign an ADDENDUM.  This may be 1 page or 13!  These addendums are written to heavily favor the interests of the bank.  If you are buying a bank foreclosure, keep this in mind.  Be advised that sometimes they will refuse to accept any offer that attempts a modification of the requirements on the bank ADDENDUM which usually included wording that supersedes the purchase agreement.

6.  Be prepared to Become a Nag.  Information may not flow to you freely.  Keep in contact with all parties which will allow you to talk to them.  Do NOT Be Rude!  This will only impede your progress.  Instead be persistent.  While you are waiting to hear answers about the acceptance of your offer, check in through your Realtor often.  After your offer is accepted, make sure everyone is aware of how you are expediting the process.

7.  Know About Stipulations that May Cause the Loss of Your Earnest Deposit!  This can be a laundry list of items or something as simple as closing after the agreed upon date.  Read the contract carefully & make sure your lender reads the contract so they are aware of potential costs to you with regards to closing delays.  You may be required to submit your Good Faith Deposit in Certified Funds.

8.  Do NOT Surprise your Home Insurance Company or Home Warranty Company!  Make sure they are aware BEFOREthey issue a policy that you are purchasing a home which has been in foreclosure.  This is usually not an issue under normal circumstances if the home is in the pre-foreclosure stage or redemption stage and has not been abandoned.

9.  You may have some Unexpected Guests show up before the Closing!  Sometimes, you find that you have more than 1 owner.  Make sure that all lien holders agree to the sale of the home you desire to purchase. Inspecting the Title-work well before the closing is very important to make sure that you are able to obtain clear title.  You may also want to consider buying a "souped up" policy which will give you additional protection.  Consult a reputable title company for recommendations.  In addition be advised that sometimes the loan has been sold to a 3rd party Investor, who will also need to be consulted to ensure the sale proceeds.

10.  This is Probably NOT going to be a Happy, Smiley Closing.  These types of situations are tough and can sometimes get very emotional.  Prepare yourself.  Be calm.  This is not  usually a good scenario to have Buyers & Sellers at the same Closing Table. Do not be surprised if there are some last minute high jinx from the bank making all sorts of changes at the last minute.  Take your time to carefully inspect all changes on deocuments before proceeding. 

11. Keep Things in Perspective!  When you take possession of your home, remember that some really difficult times have probably been witnessed within this home.  If you're a spiritual person...PRAY.  Pray for wholeness and blessing for yourself and your family.  Pray for Recovery for the family or individual who experienced the pain of this type of loss.  Pray that this home is cleansed of it's sadness and once again becomes a place of joy and good memories.

© 2007 Audu Real Estate All rights reserved