I’ve worked with & consulted many many people who were behind in mortgage payments and facing foreclosure. Some of them stick in my mind and Bill is one of them.
Bill called me shortly after the Notice of Default was served - the bank was foreclosing on his home. Bill was self-employed with a couple of kids and a wife who was in total denial of the circumstance. Bill had decided to sell his house, cash out the [perceived] equity and move on with their lives.
Bill, like so many other home owners, had an unrealistic perspective of the value of his house. This was back in 2005 when our real estate market was rockin’ but even considering the market, Bill was over priced. We finally settled on a list price that, if sold at that price, would net Bill about $20,000.
The property was tough to show because Bill’s wife wouldn’t let anybody in. In spite of that and her terrible housekeeping; I finally found a buyer, wrote a contract & presented to Bill – the cash-out to Bill would have been $15,000. No way, he wouldn’t budge & the offer was turned down even though the foreclosure process was moving along.
Several weeks go by, and another offer comes in – this time the net to Bill was $10,000 – Bill wouldn’t accept $10,000 but now he’ll take $15,000. The buyer didn’t accept Bill’s counter offer.
A couple more weeks go by. By this time the holidays are upon us and I am convinced the foreclosure attorney has misplaced Bill’s file or something – I couldn’t believe the auction date had not been set – we were already about 8 months into the process. In any event, once again, I wrote another contract on the house, $7500 net to Bill. No, Bill wouldn’t take the $7500 but he’ll now take $10,000. Buyer says no. That same week, I get another offer that would have net Bill $7500 – no Bill stood firm on his $10,000.
The holidays pass by and no more offers. Then by some miracle (the house is in really bad shape by this time), an investor calls and makes an offer – $5000 net to Bill & with a quick 7 day close. Yep, you guessed it. Bill turns down the $5000 but he’ll take $7500. No deal.
Ah, finally the papers are served and the sale date is set – Bill and his family have less than 30 days to vacate and not a dime saved up. I was tapped out and just couldn’t buy any more properties but desperately wanted to at least get this family some “move money”. I called a buddy in Tampa and asked him if he would please take a look at this house – which he did.
Lee looked at the house on a Thursday, wasn’t impressed but reluctantly agreed to buy the property – Bill would have received $3500 – at least enough to move his family and personal belongings. Bill – you won’t believe this – Bill said he had to think about it. Lee said it is now or never. Bill rejected Lee’s offer, rejected the $3500 and 5 days later, he and his family were removed from the premises by the Sheriff.
I never quite understood Bill’s rationale; especially rejecting the $3500 he could have gotten just in time to move his stuff & his family before the auction-sale.
I think the one person I really feel for is the teenage daughter – she had the humiliating experience of being removed from her home by the sheriff, she had to watch as her mother did nothing to save their home, and maybe worst of all, she watched as her father stubborn stance ultimately forced the family out in the streets.
