A Letter of Hope from the CEO

Back in the early 1990’s - like many other real estate agents on the Westside of Los Angeles - my primary focus was selling properties to real estate investors and/or "spec" buyers. Multiple offers were common places on properties that needed work or were "fixers."  I was a new licensee and had had a nice run in the late 1980's and was making at that time what was a large amount of money for a relatively new agent. As a result, my accountant at the time advised me to not pay my taxes and to purchase a property so I would have the write-off for my taxes the following year. I did not grasp the concept at that time that what goes up in real estate must come down. The mortgage broker that helped me get my first loan at 90% of the value suggested that as soon as it closed we also pull the remaining 10% out of the property in a second trust deed for home improvements. When the market changed - which literally at the time seemed like overnight – I was upside down – I know what it is like to not be able to pay your property taxes, Homeowner Association dues, mortgage payments, and my revolving unsecured credit card debt.

At that time, we did not have the Internet or the wealth of services available that you as a Seller have today. I was younger then and did not realize that as I made money I needed to save and be prepared for change in the market - or my health or any other possible situation. I honestly thought that the Westside Real Estate market that we had in the late 80’s and even 90 and 91 would go on forever and as a result had run up my credit cards and lived a life that literally crumbled overnight. I tried to negotiate with my bank and do a deed in lieu of foreclosure – but of course they did not want to do that as they would have had to make payments on the second trust deed.

I had no plan and was too ashamed to let a lot of people know what was happening as I was a Vice President at a small boutique real estate firm in Beverly Hills. My accountant that had been advising me went bankrupt and I began a slow downward spiral that had me leave the business for a while to learn another business - Telecom. Interestingly, enough of the people I went to work for ended up going in to real estate development and there I was again - learning another part of the business and all worked out as it always does – in time.

It is important to me to let you as a Seller know that I honestly know what it is like to be in your shoes and for this reason I have decided to dedicate a section with resources that you can use to examine all of your options prior to just turning over the keys and walking out. At the time I was depressed, felt betrayed, defeated, and paralyzed –  I beat myself up and felt like I should have known better, as I was an agent myself and should have paid attention to the signs. Now I have come full circle and in creating this site and this section I can be of service to those that are now in my previous situation.

Even though foreclosures and REO properties will be a great opportunity for some I know that there will be a great number of people that are shell shocked as they - like myself - did not realize what they were signing in their loan docs and did not understand that the value of their property could possibly go down below what they had paid. I had no equity in my place and felt that my dream - the American Dream of home ownership had just gone up in smoke. I myself as an agent have chosen to refer sellers who are in the process of realizing that their properties may not be worth what they paid for it to a host of resources, as it is painful for me to see and hear stories of so many, as it is very close to home to me.

The good news is that today there are a host of resources that a Seller can use and try before just turning over the keys to the lender. As a seller in today's market you need to go through the process of evaluating your options prior to just walking away from your property. What at the time seemed to be the greatest loss of my life now gets to benefit others.  What seems like the greatest loss often can end up as a great lesson that brings even more experiences, that then turns in to something completely different and somehow, some way, brings you to a place where you are able to start over – learn what's really important – and that you are even able in many cases to pursue even bigger dreams and reinvent yourself over again.

Know that this Agent has been there... walked in your shoes and knows that anything is possible. All of the above is not the end but sometimes an even better beginning.  What has been possible for me can be possible for you too.

My sincerest regards and prayers for a soft landing for you and yours,

Coco