The growing world of foreclosures and short sales doesn’t give you a second chance to gamble with your real estate license or your real estate business. In some markets, distressed properties (short sales and real estate owned, or REO) outpace traditional sales and will continue to grow through 2012. January 2009 started a new trend in which Option ARM and Alt-A mortgages began to reset and default at a rate that will outpace the subprime mortgage market.

1. Coaching
Marki D. Lemons, CRB
Don’t Sell Yourself Short
Working the hand you have been dealt
The growing world of foreclosures and short sales state determines who the owner of the property is
doesn’t give you a second chance to gamble with prior to foreclosure. It also gives the guidelines for
your real estate license or your real estate business. the duration of the foreclosure process.
In some markets, distressed properties (short sales
and real estate owned, or REO) outpace traditional Each form has a purpose, but I use the forms that
sales and will continue to grow through 2012. my local and state associations have approved
January 2009 started a new trend in which Option because these forms have been reviewed by
ARM and Alt-A mortgages began to reset and attorneys and are in alignment with all of the rules
default at a rate that will outpace the subprime and regulations.
mortgage market.
Rider to the Listing Agreement
I love being a REALTOR® because it affords me
Before you conduct a short-sale transaction, it
the opportunity to learn something new every day.
is important to review your local association
Because of my love for this profession, I have found
forms and contracts. My local association has
it necessary to stay abreast of changes, statistics and
implemented riders to help with the short-sale
trends in the distressed real estate market to ensure
transaction. The first rider is used at the time of
that I can continue to enjoy the benefits that being
listing the property. This would explain to the
a REALTOR® offers me. As the (self-professed)
homeowner that the property will be marketed as a
Queen of Foreclosures, my business is comprised of
short sale, that the rules and regulations of the MLS
short-sale listings and buyers seeking short sales and
do apply to short-sale transactions, that the sale of
REO properties. My quest for knowledge has led to
the property is subject to lien holder’(s) approval
a game plan that keeps my phone ringing but, more
to accept less than what is owed on the loan and/
importantly, keeps me in compliance with state law,
or lien. The seller must convey to the lender their
the National Association of REALTORS® Code of
current financial information, and the commission
Ethics, and my local MLS rules and regulations.
may be modified based on the lender’s approval
which could change the cooperating commission
In working the hand that you have been dealt, it
being offered.
is necessary to stay informed of new forms and
changes to your local MLS. Since introducing short
sales into my business back in 2004, I now have up “As Is” Addendum
to 17 additional forms I use in my business to stay In a short-sale transaction, the seller is showing
in compliance and grow my distressed real estate they do not have the monetary ability to meet their
business. You can find these forms in the CRB Web monthly financial obligations. All short sales should
site’s Knowledge Center. be sold in “as is” condition because the seller doesn’t
have the financial means to make modifications
The forms that you use will be contingent upon the and repairs to the property. Using the “as is” rider
mortgage theory in the state where you practice real doesn’t eliminate the need to use all federal and
estate. The three mortgage theories are lien, title and state disclosures. Buyers who are purchasing a
intermediate theory. The mortgage theory of your property in “as is” condition are still entitled to have
12 Sept/Oct 2009 www.crb.com

2. I love being®
a REALTOR
because it
affords me the Join the Conversation!
opportunity to Webinars & e-Roundtables for
learn something CRB members
new every day
a home inspection. The home inspection findings
can lead to a price reduction. “Effective Ways to Help Your
Short Sale Rider to the Sales Contract
Office Go Green”
Tuesday, October 6, 2009
Once you have secured a ready, willing and able 3 – 4 p.m. (CDT)
buyer, it makes life a lot easier if the buyer and
seller are on the same page. A short-sale rider to
the purchase and sale contract should address the “e-Roundtable: Secrets to
issue of time. For lenders, time is not of the essence Success”
and short-sale approvals are averaging three to four Tuesday, October 20, 2009
months. There is a provision for a “lender approval
deadline.” I recommend that this approval be dated
3 – 4 p.m. (CDT)
according to the average time it takes for short-sale
approval where you practice real estate. “FREE Web Sites for
The rider also states that deadlines can begin at
Recruiting New &
the time of execution of the contract or once the Experienced Agents”
lien holder approves the offer. Due to the condition Tuesday, November 3, 2009
of some short-sale properties, it is recommended 4 – 5 p.m. (CST)
to have all deadlines to begin at execution of
the contract because it is easier and less time-
consuming to ask for a price reduction up front “e-Roundtable: How to
instead of waiting until after you have a lender’s Create a Virtual Real Estate
approval. World for Your Staff & Team”
Tuesday, November 24, 2009
Educating yourself and other REALTORS® will 4 – 5 p.m. (CST)
allow you the opportunity to play a fair hand. It is
essential that everyone understand the rules and
regulations as we enter the long haul of distressed Visit www.CRB.com and click on
real estate transactions. the “Education” tab at the top of
the Home Page for more information
Marki D. Lemons, CRB, is a broker associate for
Rubloff Residential Properties in Chicago. In addition,
and to register.
she is co-founder of www.foretraining.com and
founder of the ADPR professional designation.
For Managers, Brokers and Owners 2009 Sept/Oct 13