And we wonder why we are in this mess.

by Kris Berg on August 27, 2010

And we wonder why we are in this mess.

“Your call is very important to us,” said the chipper robo-voice, just before throwing me into the middle of a familiar easy listening song from the 60s. And as I continued to listen to the entire loop from the “Various Artists” soundtrack, she interrupted each ditty in turn, just as I was starting to get into the rhythm, to remind me just how important my call really was, in case this hadn’t been sufficiently impressed upon me twenty minutes prior.

If my call was that important, someone would have picked up the *&#% phone already, but this is not about bad customer service. Rather, it is about incompetence.

I was on hold with a lending institution. And I suppose I should cut them some slack. They are busy-busy people. In fact, I am reminded of this each time one our clients is nearing a closing deadline. Three days before close of escrow, time to fund – this is when the lender explains to their valued customers why the loan application they have been sitting on for 45 days may not be approved in time, moving trucks be damned.

We received two such reminders this week, both from very big direct lenders.

“I can tried cannot guarantee anything we do not do same day or next day fundings and at this time of the month it is even harder BUT I will try once I receive them,” said one eloquent processor in her email. So busy was she, apparently, that she had no time for proper spelling much less punctuation.  Oh, and the “them” that she was waiting to receive was the steaming mound of paper she had been sent the previous day.

But, back to my call. I am busy too. And, I was making this call because I received a letter from IndyMac Mortgage Services with the subject heading “Project Lifeline.”

Dear IndyMac Customer:

You have fallen behind on your mortgage payments and IndyMac Mortgage Services… wants to find a way to help.

It seems, to better serve me, they wanted me to speak to a Loan Counselor and let them know I am “interested in exploring the available options to stay in (my) home.” Further, they advised, “We cannot help you unless we hear from you.”

Uh, IndyMac, guess what? I don’t have a loan with you. I did – up until two months ago – but that was before we refinanced our home and the loan was paid in full. And, for the record, I have never (as in “not in my whole life, and I am really old”) been late on a mortgage payment.

Before calling my Loan Counselor, I had to of course do a little homework. Need to get my ducks in a row. Bummer I’m so busy, because I hadn’t exactly budgeted time for saving my home today.

First I had my credit pulled, fearing that it was now littered with a dozen bogus late pays, but it wasn’t. It showed my IndyMac loan closed out with a zero balance. Next, I called the escrow officer who handled the refinance, just to make sure everything was paid off and recorded. She had the cancelled check. Then, I had to scrounge for my loan number, because I knew that my Loan Counselor would ask for it, and they hadn’t bothered to include it in my bail out letter.

I finally did speak to the customer service specialist, but only after selecting “1” for English, punching in my 48 digit loan number, the last four digits of my social security number, and my dogs name, reciting the names of all seven dwarfs, and listening to Paul Anka gush about having his baby so many times I was going into labor myself. And here is how the conversation went.

Loan Counselor: This is (unintelligible name) on a recorded line. May I have your account number?

Me: Well, I just punched that in, but I’m not sure if that is the account I am calling on, because I got this letter and there is no account number…

Loan Counselor (irritated now): What’s it say at the top of your letter? Is it (something unintelligible)?

Me: Uh, there is nothing at the top. The subject says “Project Lifeline” and…

Loan Counselor (barely civil now): Those were sent out by mistake. I have been getting these calls all day. You can disregard.

Loan Counselor: (Dial tone)

I might have been wondering at this point how a letter like this got sent “by mistake,” how many people were inconvenienced like myself by this boo-boo, or even if there was something more sinister at play – like a lender getting bonus points by being able to demonstrate to the government that they were really trying to defend and protect the American Dream.  “Look! We mailed 1,900,712 letters in August alone! We are really trying!”

Ultimately, I suppose my beef really was about customer service. An apology would have been nice. Some feigned compassion would have been appropriate. Instead, I was dropped like a hot potato the minute it was determined that I was either not really a customer or I served no immediate purpose. They are, after all, very, very busy, and there are many other calls that are very important to them waiting for the next available operator.

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Making an example of myself: What matters when preparing your home for sale.

We have had a flurry of clients recently who, in anticipation of their listing “coming out” party, have recognized the need to do a little preparatory sprucing up. And one of the most frequent questions we get from selling clients is, “What things should I do to maximize my sale price?”

Good question, that one. After all, that’s our job — to help our selling clients see the greatest return on their sale. And the idea of preparing a home for sale is to make it as attractive as possible to potential buyers without making the staging process a losing proposition. In other words, you want to spend money on only those things that will result in an equal or greater return – and, in more extreme cases, those things that, left undone, will keep your home from selling at all.

On that note, and in the spirit of transparency, I thought it would be fun to make an example of myself and my own digs. I’m not selling (which is a good thing, since the deferred maintenance at Chez Berg makes the Parthenon look like new construction), but if I was, here is my personal list of highest priorities.

Who killed my grass?

Bad Grass

In my case, the culprit is one very dumb yet lovable golden retriever. Try as we might to impress upon Simon that he has a designated “area,” he does what he does wherever he wants to do it. If I had a few weeks before the photographer was scheduled to show up, a large U-Haul full of grass seed would do the trick. If my listing were a more urgent matter, however, I would be calling 1-800-ResodMe.

Just pick a color, already!

Bad Paint

We need to repaint. At the 10-year mark, it’s time. And, knowing this, I boldly tested a few warm candidate colors on random walls throughout my home – in 2009. I did this hoping that walking past the inkblot test every day would be the inspiration I needed to get with the program. Alas, my walls with acne are now an ever-present testament to my inability to make a decision. If I were planning to sell, I would need to make this little objection go away and fast. As it stands, we just don’t entertain, at least not anyone with a pretty home or better than 20-60 vision.

I think that was my great-grandmother.

The personal photos would have to go. It’s a distraction. I don’t notice them when showing homes, but then I’m a trained professional. Buyers do, and they tend to spend more time discussing the seller’s gene pool than they do the special features of the home itself.

BadPicure

This particular piece depicts five people I am somehow related to. I think I know who they are, but I am not 100% positive. In any event, I do know that they do not look happy (probably because they are dead), and I do know that they will be scowling at the rear wall of my garage the minute I decide to start showing my home.

She made the Dean’s List!

And the other one got A’s. And here is a recipe for something we made three months ago and didn’t even like. Time to clear the treasures from the refrigerator, because the buyers don’t care. While I am at it, I need to dispense with the “junk pile.” There is a charming and quite utilitarian desk under there, beneath the candy, the senior photos, the Frazee paint colors paddle, the Dave and Busters shot glass (unused because it doesn’t hold enough) and, of course, the wind-up royal family.

BadClutter

Who changed their oil in my hallway?

Carpeting, even the finest carpeting, does not live forever. I know, because I have tested the theory. Downstairs, the carpeting is newer, so a cleaning should do the trick. (Try as I did to choose a color that matched the dog, Simon’s favorite resting spots look like a police crime scene with his outline carefully preserved for investigators.) Upstairs is another story. Thanks to two children (Note to parents: Always blame the kids), only a blowtorch will restore this area to its former glory.

We’ve been meaning to fix that!

In fact, we’ve been meaning to fix that since the Clinton administration. In our case, “that” is the leaking faucet in the laundry room, the broken blinds in our bedroom, the chunk of grout that fell off the guest bath sink the day we closed escrow in May (of 2000), the mangled window screen from the time I locked Steve out on the second floor balcony before heading out to an appointment, and, well, you get the idea. That last one, by the way, was an accident, and I am sticking to my story. But the point is that if you can see it, they can see it, which will leave the buyer wondering what it is that they can’t see.

My housecleaner comes once a week.

The problem here, aside from the fact that she really doesn’t clean anything, is that my house cleaner is not 20 feet tall. And a casual glance toward the far reaches of my dramatic, vaulted ceilings will reveal a chapter from Charlotte’s Web. As nonthreatening as my webs are, taken independently, they are collectively suitable as a backdrop for the remake of Amityville Horrors. If that isn’t scary enough, these cobwebs presumably come with very industrious spiders that convey. Fortunately, the painter has a big ladder. When I summon him, I will add this to his scope of work.

Not Funny Bear! He’s special!

Clutter is typically the biggest demon to exorcise. We all have it. Clutter screams “Not enough space here!” My own clutter screams in expletives.  And it’s not that my home is not big enough; it’s just that it’s not big enough to hold all of the unnecessary, non-essential crap I have amassed over the years.

I started the de-cluttering process most recently with Daughter #2’s room in honor of her impending departure to the halls of higher learning in pursuit of a degree in something to be named later. (See “Always blame the children” above.) As a result of this particular “trash out,” I am told that Hefty had to double production of those big, black bags usually reserved for gardeners and landfill operators. And what I found would have sent the most plucky of deal-seeking would-be buyers running for the next, more manageable fixer opportunity.

Sure, each of the eighteen years of her rich and full life was chronicled under her bed – and behind the dresser, and in the closet. Kids do that stuff. But we “big people” fall victim to collectable tendencies too. While sifting through the rubbish and to my own sentimental delight, I encountered Funny Bear.

BadBear

Funny Bear got his name because he used to reside atop an armoire above the changing table. He provided an essential diaper-changing distraction for both girls. He made them giggle. Here is the scary part.

Funny Bear was born at the San Diego State University Book Store. For some twisted reason, I thought he would look whimsical in my dorm room. That was in 1977, making this stuffed treasure, the one with the hang tag warning to “surface wash only,” 33 years old. And for the record, I don’t recall ever even attempting to wash the adorable plush pal who now channels Bob Marley, on the surface or otherwise, which makes me fear that the nice folks from the Center for Infectious Diseases may storm my house if word gets out. It’s time for Funny Bear to take a road trip.

In summary, if you are planning on selling your home, leave yourself some time to get your house in order. Ask your agent for advice on the things that need to be done. Their own house may be a hovel, but that doesn’t mean they don’t know better.  It just means they have children.

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Death, taxes, and the open house

by Kris Berg August 16, 2010

Death, taxes, and the open house
photo credit: TheTruthAbout…
Certain things you can just count on.
Open houses are a quirky piece of Americana we just can’t seem to shake. You may think they’re a stupid waste of time, or you may think that your home’s salability depends entirely on the curious, time-worn Sunday ritual. But, either [...]

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Buyers beware: 11th hour credit scrutiny

by Kris Berg August 12, 2010

Buyers beware: 11th hour credit scrutiny
From the “It’s not over until the fat lady closes escrow” file, this is something I’ve been meaning to post about for awhile. So as we all wish George Hamilton a happy 71st birthday, I will point you to an article by Dan Green, the Mortgage Machine, on Fannie Mae’s [...]

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Latent demand – The importance of getting it right the first time when offering your home for sale.

by Kris Berg August 12, 2010

Latent demand – The importance of getting it right the first time when offering your home for sale.No one wants to be #2.

photo credit: a loves dc
I had to scratch my head on this one for a minute. Who needs a liquid pencil?

Then, the more I thought about it, the more sense it made. [...]

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Treasury Department puts kibosh to Fannie/Freddie mortgage debt forgiveness rumors.

by Kris Berg August 6, 2010

Treasury Department puts kibosh to Fannie/Freddie mortgage debt forgiveness rumors.It all started here.
From Reuters:
Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the [...]

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The sky is falling. Or is it?

by Kris Berg August 5, 2010

The sky is falling. Or is it?I recently wrote what has become my annual summer refrain, warning that we should all brace ourselves for an expected August slow-down in market activity. And then, as if by cue, the phones started ringing. Everyone, it seemed, was suddenly interested in buyer or selling.
What do I know?
Maybe I [...]

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