Welcome to Sananda Spa & Salon

Grand Rapids, Mi  1996. 

You could sense the tension in the classroom.  We had been informed that we were going to be discussing It after the break.  An uncomfortable atmosphere hovered over the participants in the smallish classroom in which a group of real estate agents had gathered to continue their education. 

The mandatory 3 hours of Civil Rights Instruction was the elephant in the room.  Now, why did I feel that in an oddly peculiar way that this was about me? Being the only black participant in the class, I sensed that everyone was poised to be careful, ...very, very careful in how they responded to this provocative topic.  Or perhaps, they were watching to see how I would respond.

The instructor wasn't about to make this easy.  No Way!  This was not to be a polite discussion about the history of civil right laws & all the great progress that had been made in West Michigan.  After a hilarious (if it wasn't so serious) video, sporting a fellow in yellow polyester suit demonstrated how racism works in real estate through steering & other forms of discrimination, the instructor opened up the floor for discussion. 

The first few questions were tepid, somewhat timid.  I sensed that to most of my classmates, I was one-dimensional as though my color defined all that was important to know about me.  How could I explain that there is no such thing as the "typical" black person.  This figment of their imagination that they were trying so desperately to avoid offending by airing their opinions & perceived grievances.  People are people, there is no typical anything when it comes to the business of being human!  At some point, they seemed to forget that I was in the room fear & vulnerability began to surface.

Several individuals admitted they felt when dealing with individuals with whom they had very little experience or contact .  Others expressed the fear of being tested...the dreaded exercise in which undercover agents employed by the government would randomly send Testers from different ethnic backgrounds to determine if they received the same level of professional attention and service.  Advise designed to supposedly protect oneself from being "burned " ranged from "just treat others like you would like to be treated"  to "make sure you offer everyone a cup of coffee."  This, taken to a ridiculous degree, resulted in real estate agents offering every single solitary client they met in the office, Coffee even if it was 100 degrees & sweltering heat outside. This was considered proof positive you had treated everyone the same!

The dirty, not so secret reality in real estate, is that historically our industry has not treated everyone the same.  Steering & Redlining are words that are a stark reminder of our efforts as an industry to keep communities homogeneous & in a certain likeness. Even today, the number of minorities represented in our ranks is clearly not in tandem with the population of our nation. 

According to Marie Rosol, in an article published on Realtor.org entitled "Talk Among Yourselves!" 

"The real estate consumer is changing. For years, most U.S. residential agents sold houses primarily to white, two-parent families, of Anglo Saxon roots, with 2.5 children. Times changed and real estate agents changed too-becoming adept at serving the needs of varied households, including the single buyer, childless couples, single-parent families, adults caring for aging parents, etc. Yet many agents have still not focused on the changing ethnicity of homebuyers."

Although U.S. REALTORS® have been told for the past decade that changing demographics would impact the home-buying market, many have failed to take steps to educate themselves to better serve these homebuyers. When asked about the need for diversity or ethnicity training, a common response is that "it doesn't impact my market" or "only areas such as Florida, California, or New York City need to think about this."

These sentiments were expressed over a decade ago as I sat in that class & are still being expressed today.  Even in the face of some staggering statistics such as:

• "In the decade of the 90's the population growth in 37 States was due to an increase in the minority population.  Least you think this occurred only in California or Florida...think again.  According to Rosol's article,  167% of Connecticut's growth was due to minority population increase.  The numbers were 83% in Illinois, 109% in Pennsylvania, 145 % in West Virginia & get ready for this...422% in North Dakota.  No state had less than 21% increase in population as a result of an increase in the number of minorities according to the article.  Yet Realtors continue to debate just how to deal with people who are "different."

As the level of fear, frustration & just plain ignorance increased in the room, I raised my hand.  The instructor signalled that I could speak & all 30 pairs of black & white eyeball turned in my direction.  I spoke from my heart.  You see, my skin color is dark, but my soul & life experience encompass a coat of many colors.  Having grown up in an international community, I see the differences & distinctions in people as the Gift. 

This was the story I told.  Many years ago, people from this nation sent people to my country & other countries around the world as missionaries to be light & bearers of assistance.  Many of you gave Money to make this possible.  The Money was the Seed.  That Seed was planted through the individuals you sent who built hospitals, schools & in various ways benefited the communities where it was planted. Your Seed enabled progress & transformation to emerge.

It is the nature of Seed to grow & bear Fruit.  But Fruit never looks like the Seed that was planted anymore than an acorn looks like an oak tree.  You gave money which created opportunities & I and others like me are the result.  You never get the full benefit of your Seed until you eat it's Fruit.  Eating Fruit is a humble recognition of accepting the return on your investment of Seed.  People with their experiences, gifts, talents, ideas & dreams are the result Seed of America's Investment in the world.  The Fruit has come back to give it's Gift from all over the earth! Failing to understand this dimension will ensure that you miss the Gift that is yours. 

At it's root core, this journey of acceptance, affirmation & enrichment through appreciating the Gift is a journey of the heart.  Programs like "At Home With Diversity" offered through the National Association of Realtors may start the conversation & enlighten the mind through education and awareness, but if we fail to understand the implications for our industry and more importantly for ourselves, our actions will be mere surface observances; stilted attempts to obey the letter of the law for fear of retribution rather than embracing the Spirit which gives life. 

We will miss opportunities to benefit from fresh ideas from an outside perspective because the voices we need to hear are simply not at the table.  These voices are already changing the dynamics of how America thinks & functions and THIS is nothing New!  Our nations' heritage was built on this foundation. Ellis Islandstands as a tribute to the many different cultures & voices that travelled to this country many years ago whose gems of contribution continue to enrich our lives to this day.  Can we afford to miss the next wave?  Perhaps, instead of trying to figure out how to deal with people's differences, we might be better served by simply receiving & accepting the Gift of their unique presence. 

*The Grand Rapids Association of Realtors was remarkably forward thinking in addressing issues that limited housing opportunities for people of different races.  Read their mission statement...

Copyright 2007  Audu Real Estate  All rights reserved

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.