Real Estate Information Archive

There are many people who give to other's and never ask for anything back. They work quietly enjoying the satisfaction that comes only helping another person in need. Here's a little story about one person's good and selfless work. 

I network a lot. While networking I met Paul Knutsen at an event and found him to be a guy with a heart and wonderful sensibilities towards life and helping others. So, It was not a surprise to find that he runs Gladeview Health Care Center from a completely different place than most. While having breakfast in Deep River at Kristen's with Paul, he pointed to a cross that was hanging in the restaurant across the room that was made from rope in a particular fashion. He told me his father, John Knutsen, now retired for many years, was making them by the bag and giving them to pastors of churches, to homes like Gladeview, and to those he meets on his travels.

John Knutsen at his home workshop...

John worked for 30 years at Pratt and Whitney and took an early retirement that has kept a grin on his face ever since. "It takes a lot of time to do nothing and I work hard at it," John told me. He was a customer relations contact with airlines for last 15 years of his career. When he first retired and became his own boss he spent a lot of time fly fishing. Health reasons kept that from being as frequent an activity as he would have liked. John decided to focus on another activity so he started making things from rope. He learned Chinese knotting and is really good at it. He delved into knot tying in a big way and came across sailor's cross. The legend is that Portuguese seaman make these from scrap pieces of rope for the bow of their long boat for divine protection. His Navy background and strong faith drew him to make these "sailor crosses" and offer them to those in need.  

The Sailor's Cross is one of many types John ties...

John was married to his bride Marie in E. Greenwich, RI. The church they got married 52 years ago was where Marie grew up. John's Navy shore patrol brought him to the area and they met at one of the local community dances. The Pastor of this church told John how good people felt having received the crosses that he placed in a basket, free for the taking, by all who came through their doors. 

John uses a variety of line, rope, and leather to make his crosses.

John became addicted to making them and started making them by the hundreds. I also learned during my short visit with him that Scouting was in his past…no surprise. Being an Eagle scout myself…knot tying was a certainly one of scouting's mainstays. 

John gets a lot of satisfaction out of making someone happy and introducing a different energy into their lives. I'm honored to have met and talked to John and thought I'd write a small tribute to his good work. 

If you're interested in getting some of his crosses for your good work, write me an email and I'll connect you. 

Congratulations to Lindsay Eisensmith for the grand opening of Vitality Spa at her new location on Lyme Street in beautiful Old Lyme, CT. Formally Better Health Massage and Bodywork formerly located near the Hideaway Restaurant, the new name is concise and cuts to the chase: Vitality! 

The new location is inviting and convenient. 

Vitality Spa opened officially on December 9th 2010 at their new location 14 Lyme Street, Old Lyme (next to the Diane Birdsall Gallery) and to the left of E. F. Watermelon. For more info call: 860-434-1792 or email them info@vitalityspa.com

The new location exudes an atmosphere of calm and relation with it's subtle warm tones, background music, and now a whole line of Vitality Spa products to keep the relaxed feeling and healing going at home after your session ends. 

Vitality Spa offers something for everyone:

Better Health Massage™

Zen Facial Rejuvenation

Vitality Body Therapy

Yoga Therapy

Deep Tissue / Sports Massage

Ashiatsu Oriental Bar Therapy™

Pregnancy Massage

Active Release Technique (ART)

Reiki

Craniosacral Therapy

Couples Massage

Accupuncture

Meditation

There's even more so please visit their website at: "VitalitySpa.com"

There's a full staff of dedicated professionals waiting to help you and at a time that fits your busy life and schedule. 

From left: Kara Hooks, Lise Bohannon, Lindsay Eisensmith, Lesley Bolton, Dr. Carl Zapatka

My wife and I both have experienced the healing touch of Lindsay and her staff and consider ourselves Vitality Spa clients for life. Whether it be for general relaxation or to shorten the recovery from a bad back, the relief and care we receive is exemplary and welcome. 

Come visit soon and meet Lindsay yourself!

I've lost count of how many times I've told a prospective or current listing client that it's a beauty contest and a price war and you need to win both to sell your home in the current market. Are there exceptions? Sure…there's the unique location or architectural marvel with a historical aspect everyone wants to own, but for most, you simply need to look better and cost less to grab one of the few buyers in the current market looking to buy a home. 

Lisa gave each of her guests this special cookie with her logo on it. Each was beautifully presented in a cellophane bag tied off with a ribbon. 

It was 5 years ago I decided to give home staging a try to help my clients sell for more and in less time. Home staging's roots and traction came from the west coast of course and I was aware of it from the trade news I read and some blog articles. 5 years ago when I met Lisa Leonardi, creator of The Room Doctor, 70% of the listings in CA were already being staged at some level. Empty homes were furnished and occupied homes got sometimes complete make-overs. 

 Lisa Leonardi, right, with her right hand assistant Julie Cousins.

Lisa made a presentation to the brokerage I was working for at that time and her timing was perfect. I had a listing in need, TV shows were popping up dedicating themselves to the topic, and articles online and in real estate periodicals were covering the subject as well. Lisa was clearly the leading edge of home staging in our area and I for one was glad that this service was now available here. I was ready to give it a try..

Lisa held an open house at her beautiful home in Madison. She invited many of the great tradespeople she relies upon to get the job done. Karen Bernetti, a colleague in real estate and home staging, presented her new book "Ready2Sellin30Days" designed to help people prepare their home themselves in a well thought out and manageable way. You can eat an elephant...one bite at a time! Find out more at www.Ready2Sellin30Days.com.

I had just signed a listing in Waterford that the previous agency had failed to sell during their six month listing period. The Coast Guard officer and his family had already moved to their next assignment in Alaska and the modest split-level house was empty, needing updates, on a corner lot but had good bones. The price was ok but not saying "buy me, I'm a good deal in my current condition." 

One of the many beautifully decorated rooms at Lisa's home for her annual open house.

I hired Lisa on my dime as the client had no funds to contribute so I covered this one in total. I had a 6% commission agreement so I could afford to cover it with my proceeds at closing. Lisa came in and treated the hardwood floors with a treatment to soften of the areas of that clearly needed refinishing. She brought in furnishings, hung nice things on the walls, made wonderful color choices in shower curtains and other accessories to soften the sting of the colors of a bygone era, and more. Candles were used in strategic places for ambiance. The place looked wonderful and it suggested a living flow that some buyers would have seen as challenging in a completely empty state. I now had a subject home that allowed me to create professional photos for marketing that were inviting and now looked like a good deal for the asking price now. 

Lisa speaking with Ed McCaffrey from our Page Taft Real Living Essex office. 

Long story short: I sold the home in less than 6 weeks, had more traffic in buyers at the house in the first week than the previous agency had during the entire listing period, and I found my own buyer making it very easy to cover the staging expense. I got very close to asking price, and the home sold in a short period of time. I've used The Room Doctor ever since and my track record proves the worth of the great service, advice, and talent of Lisa and her staff. 

Here's what The Room Doctor offers:

Staging Consultations: A service whereby Lisa spends an hour or two (as needed for the size of the home and scope) and advises on what the homeowner should do to best prepare the home for sale. She provides a summary of that consult in writing for the client to execute on their own. I ask that my seller's do as much as they can afford and agree with. Most do a lot and it is a huge improvement. 

Staging Assistance: A service whereby she and her staff will assist the homeowner in the physical execution of staging the home. From moving furniture, hanging art, and the like. 

Full Service Staging: Get out of the way and let the pros do it all. 

Furniture and accessory rental: Sometime's there's too much furniture, other times not, and still there are times replacing what isn't working with something that will till the house sells is the ticket.

There's much more The Room Doctor offers in the way of services so check out their website at the theroomdoctor.com.

The way things look really matter....especially to buyers in today's market.

If you're a seller and your agent hasn't recommended home staging, mention it to him or her! If you're an agent looking for a great home staging company, look no further. If you're a for sale by owner individual, what are you waiting for…call us or another agent you like and The Room Doctor today and get serious about selling your home today!

If you've ever had to search for a nursing home, long term care facility, or place to rehabilitate from major surgery for a loved one you'll quickly find out who's in the business for the right reasons.  By simply touring a facility unannounced your observations will give you the comfort level of what a facility has to offer to you or your family member needing care.

Some years ago I visited many long term care facilities while searching for an elder mother-in-law and it was quite discouraging. Often times the words coming from the lips of the representative who was selling the facility didn't match up with reality...or at least the reality I experienced with my own eyes during my tours. Many halls I walked smelled of urine and were full of equipment and the like in the halls making it difficult for residents to traverse. I simply didn't get the feeling or energy on the floor that things were as upbeat as they could be. These would be facilities that I feel are doing the least for the residents in order to fatten the bottom line for the company.  

Recently, I had the pleasure of meeting Paul Knutsen, Executive Director of Gladeview Rehabilitation & Health Care Center in Old Saybrook, CT. I met Paul at a BNI meeting last week and went to visit him to see what kind of facility he ran. I was not only blown away about how Gladeview was managed and run, but with Paul Knutsen himself. 

I learned that this energetic executive in his early forties was in the business for the right reason. When I asked him how he found his way into the healthcare industry he reflected about his youth working for the Easter Seals Foundation at Camp Hemlocks in Hebron. At 15, he felt how wonderful it was to help someone in need, he knew then and there what he wanted to do for work for the rest of his life. That feeling was too good to let go. He never looked back. “I enjoy being able to be part of the team that provides great care, getting people back to their best, or providing a great living environment for those who reside with us.”  “Making a difference in someone else’s life is what this is all about”.

We discussed a lot about long term care facilities, a bit about our country's broken state our healthcare system is in, and more. Each of Paul's responses were heartfelt, erudite, and demonstrated his expertise in the business. Paul is no nonsense, has an extreme focus on things running correctly, puts the patient first, and manages a staff that is one of the warmest, most professional groups I've personally witnessed. 

On my tour of the 3 story, 132 bed facility, which is almost always totally full, I noticed one thing right away. The halls had no smell of urine. Things were light, bright, and spotless. The halls were clear and open and the people, residents and staff, that I engaged along the way happy and smiling. This is a testament to two important things about the facility: 

1. It means that residents with incontinence concerns are well cared for and that the staff truly care for those they care for.

2. The housekeeping staff isn't hiding.  They are very present, and on top of things always keeping up on what they do. 

The floors gleam, there isn't even a small piece of debris that can be found on any floor, in any corner. 

Gladeview’s staffing model and floor management by resident needs differ from most other homes as well.  Unit managers and Lead C.N.A’s  are in place and all staff are trained specific to the needs of the residents on their units help ensure their needs are met.  This model also produces the accountability that one needs to keep a tight ship running properly and efficiently.  The entire management team is active in the care of the residents and can be found out in the resident care areas of the facility assisting and observing to make sure the optimal care is being provided.

Meet Charlene Marcotte. Charlene is one of several residents who run Gladeview’s gift shop. The profits from the gift shop and other fund raising activities are used for Scholarships for a resident of Old Saybrook.  This scholarship is given to a student who demonstrates strong community service and academic success. The residents also donate their profits to other community endeavors such as the local food bank.  When visiting Gladeview there is often 2 or 3 residents volunteering at the gift shop. 

Gladeview offers a full complement of services:  

• Twenty-four hour nursing care
• Medical Director on staff and specialists on call
• Speech, occupational, and physical therapy, dental services and psychiatry available
• Individual and group social work services for residents and families
• Distinct unit for sub-acute, short-term rehabilitation and post-acute care
• Intravenous therapy
• Contract with major insurances, HMO's and Medicare

Residents enjoy a rich lifestyle: 

• Daily menu selections artfully prepared and elegantly served
• Telephone outlets and cable access in every room
• Personalized indoor and outdoor recreational programs
• Wheelchair accessible gardening
• Canopied patio area
• Scheduled intergenerational opportunities
• Day trips to restaurants, malls, local events, etc.
• Arts and crafts classes
• Ice cream parlor and Gift Shop
• Volunteer services
• Beauty/barber shop
• Newspaper/mail service
• Library
• Regular chapel services
• Rehabilitation

In some markets prices are still dropping. Along the CT Shoreline and Lower CT River Valley prices have stabilized. I just read an article in the Commercial Record stating that CT is among the best for states for home appreciation (Read it here: http://www.commercialrecord.com/news140979.html)

Ok…so let's say you're not buying the fact prices are at the bottom and you think home values may still go down a bit. Is it still a good time to buy? YES, YES, YES, YES, YES!!!

Here's a great example why now is the time to buy your home;

You find a home to buy at $225,000 and put $25K down which has you seeking a $200,000 mortgage. Now let's say the market drops another 5% but let's just say that's the case. So let's get to some math. 

The interest rate you'll get right now is 4.25% so your numbers look like this: $200k @ 4.25% = $984 per month over 30 years at a fixed rate. However, you wait until next year and that house dropped 5% and you put the same $25K down so your new loan amount is $188,750. That's great right? If you were a cash buyer our conversation ends here. However you're not and if mortgage rates go up to 5.25% (not high by historical standards) your payment would be $1,132 per month. So buying now in the market you know right now with the interest rates we have right now would save you a handsome $148 per month putting you ahead by a grand $53,280 over the life of the loan. Back out the 5% price drop and you're ahead $42,030. It's really a temporary drop in price. I say temporary because all markets correct and if you stay in your home for 5 or 10 years this little correction won't mean much.  One thing we have been assured of is that interest rates have to and eventually will be going up as our economy improves.

I am writing this blog also because it's on the heals of a recent experience. I had a first time home buying couple in my office the other day contemplating making an offer on their first house. They got so stuck on wanting the house for about $10,000 less than I knew the seller would accept. Here's why being stubborn and wanting simply to win in one's mind may cost you dearly.  In this case I tried to point out the payment they were shooting for at their desired purchase price was $1,033. If they gave the seller what they wanted, their payment would be $1,082, just $49 more which for some is not even their Starbucks and fast food bill for the month. By waiting a few months risking an interest rate rise say to 5.25% their payment for the same house at their desired price their payment would be $1,160 or $127/month more. So winning for this couple would be losing. As one's REALTOR we're trusted advisors and it's our job to give you the facts. The decision is yours of course. In this case waiting or bogging down over this price difference doesn't make sense….at least to me. 

DID I SCREW UP BY MISSING THE TAX CREDIT? 

No, no, no!!. When the tax credit expired the interest rate was around 6.0%. So using the two examples above you can clearly see that you're actually better off now. In spite of all the glum news homes are still selling. They do in every economy. The River to Shore Group at Page Taft Real Living, exclusive affiliate of Christie's Great Estates, is getting the job done no doubt. 

If you're a buyer you can create an automatic search for homes in any area that meets your specific criteria. When new homes come to market they'll show up in your email inbox and relieve you of manual searches. It's free, confidential, and you won't need to speak to an agent…visit: CTHomesByEmail.com

If you're contemplating selling visit this site to get your homes value without talking to an age. All for free: ValueMyCTHome.com

If you want confidential info on how to avoid foreclosure or to get information on short sales visit: CTShortSaleInfo.com

Want great interest rates from a mortgage company that's honest with great service? We can connect you with the person who'll match your loan to your needs. In fact we can connect you with the right attorneys, inspectors, movers, contractors, and more. All for free and with our compliments which is quite helpful to our relocation customers for sure. 

I really look forward to each of Andy Kramer's insightful newsletters and analysis of the stock market. Here's October's outpouring from a brilliant mind. He and assistant Shu Wu have served me diligently for years and the trust and confidence continues. Here's this month's newsletters posted with permission:

Dear Investors:

In the third quarter of 2010 the S&P 500 closed up 11% on the heels of a blistering 9% September rally.  KCM accounts continue to modestly outperform, primarily due to our overweight gold mining companies, as gold continued to appreciate, up 20% YTD.  The 4% YTD return on the S&P does not reflect the bizarre, herky-jerky action.  In 2010 there have been no fewer than 4 swings of greater than 7% in both directions (Appendix A).  In early July the markets looked ready to embark on a new bear trend only to hold the previous support level around 1000.  The subsequent 12% rally had all the characteristics of a short covering rally: when those most negative on the markets cover their bearish bets because important technical support levels hold.  The market then rolled back over, weighed down once again by the inevitable reality of the harshness of our current deflationary debit debacle.  The market bottomed again at the aforementioned support level in late August (after another 8% sell-off) where the current 11% up move commenced.  The current rally, like the previous one, is a “reflationary” trade: a “risk on” mindset.  The current meme, QE2, widely anticipates further Federal Reserve easing and monetary stimulus.  Unfortunately, we believe this new attempt by the central bankers will inevitably fail.  It remains our contention that while brief periods of calm and optimism are possible, there is no magic elixir for what ails our economy.  We continue to anticipate difficult and volatile markets for years to come.

While Appendix A highlights the large swings that have characterized the market in 2010, Appendix B shows a longer-term picture that reflects the trading band that has transpired for over a year.  Apart from a brief attempt in April to break out to the upside, which was quickly and emphatically rejected, the market has meandered in a well defined trading range.  The difficult trading environment reflects the opaqueness of future outcomes.  There are many more questions than answers.  For the remainder of the letter we highlight three areas that are critical to understanding potential outcomes.

Perhaps the largest and most important unknown is the future direction of interest rates.  The Federal Reserve continues to firmly state that low short term rates will be with us for the foreseeable future.  There is little doubt that they have the necessary tools to insure this outcome.  Perhaps we are alone in our skepticism, to paraphrase the great American novelist John Steinbeck, “the best laid plans often go awry.” 

The latest US Treasury data list approximately $2.4 trillion in federal publicly-held debt maturing within one year.  This is approximately three times greater than any previous yearly maturity. Will the market be able to absorb this gargantuan supply (not to mention the trillions of debt financial institutions will need to refinance as well as the borrowing needs of state and municipal governments) and keep short term interest rates at generational lows?  Chairman Bernanke assures us he can.  If he is right—and we are not sure he is—it would mean another large round of money printing (quantitative easing is the new Orwellian term for this) which will result in new lows for the dollar and highs for gold.  One reason we suspect that keeping rates low is not a high-probability outcome is the enormous faith bond investors have placed in this outcome.  Fund flows in 2009 and 2010 have seen large moves out of equities into bonds.  The size of the crowd (enormous bond inflows) strongly argues for caution.  Simply put, if all these investors are right at this extreme, it would be the first time ever that such large flows in one direction correctly forecasted future prices.

Another area where large unknowns exist, along with a uniformity of belief, is China. Chinese economic growth continues to be an important theme in most investment managers thinking.  Strength in emerging markets and commodities is generally attributed to the voracious appetite of this new economic giant.  At KCM we are very familiar with this theme and have used it ourselves to justify our long-term belief in commodity investing.  We are much less sanguine today.  The Chinese growth story is certainly a major economic force that will continue for many years; however, recent data and commentary from experts in the field show some potential cracks in this view.  Growing income disparity has led to social unrest and large wage concessions in some industries.  In addition to wage inflation, real estate prices have appreciated rapidly; this also concerns authorities.  Environmental problems caused by breakneck industrialization combined with reports of excess capacity in certain industries indicate the potential for a concerted effort by Chinese authorities to slow down economic growth.  The potential for Chinese authorities to put the brakes on their torrid growth trajectory could have large consequences for global growth.  We also note that within the equity sector, emerging markets is the only sector enjoying inflows.

Finally there is the issue of the huge fiscal crisis in many of our states and how these deficits will impact future employment and federal spending projections.  There are a number of negative economic consequences that seem probable.  Perhaps the most consequential of these will be the negative drag on employment that strained state budgets will cause.  Since the onset of the financial crisis in 2007, private payrolls have declined dramatically but some of this retrenchment was mitigated by state and city governmental hiring.  This trend is over.  As states’ revenues continue to decline, state and local employment will suffer.  In a Wall St. Journal op-ed, Meredith Whitney estimated “that austerity measures will cost between one million to two million jobs for state and local government workers over the next 12 months.”  It is important to understand that talk of additional stimulus is illusory.  Any new stimulus approved by the Federal government, albeit an unlikely possibility at this juncture, will be needed not to stimulate per se but to maintain current programs and spending.  

Our list of concerns and questions is much longer then the three we discuss here.  Perhaps the hardest thing for us to understand is why there is not more outrage, social acrimony, and hostility against the current entrenched power structure.  Perhaps we are again just early in understanding what the probable outcomes will be.  We note with foreboding the debacle that is unfolding in residential housing.  First there were the homeowners who legitimately couldn’t afford their homes and stopped paying mortgages.  Next came the “strategic default” when the homeowner, acting rationally, realized there is no economic value in making their payments if their house price was under water.  We now see large financial institutions announcing foreclosure moratoriums.  Why should anyone pay their mortgage?  Perhaps this is civil disobedience in the 21st century?

Obviously this letter, like many of our previous ones, continues to rationalize our long-term bullishness on gold. We are no longer the lone wolf singing gold’s praises, however, and while we have no expectation that we are close to a long term top we do worry that the current ubiquity of bullish opinion argues for a correction.  We are watching closely and might try to hedge some of our exposure to help mitigate some volatility in the days ahead.  In other news, we are now fully ensconced in our new home at Northeast Securities.  Our new partners continue to impress us with their level of professionalism and friendliness.  It is with a heavy heart that we close this letter with the news of Shu’s father’s passing.  It was as sudden as it was tragic.  Our extended KCM family has been a tremendous support for Shu during this terrible time and we thank all of you for your kindness.

Andy Kramer

Portfolio Manager

This blog is on what irks me most about the media these days. They don't really cover things that expose the hypocrisy and abuse from thieving CEO's and politicians alike. It seems like the last bastion of radical thinkers and those shining a light of the truth is left to folks like Jon Stewart. A few weeks back there was minimal news coverage on homeowners doing strategic defaults on their mortgages. A strategic default is where some one who can actually pay their mortgage payment defaults because it makes no short or long term sense to keep paying for an asset that is worth so much less than the balance they're paying down. Businesses do it all the time. Many businesses don't hesitate to simply not pay a vendor or keep to an agreement that no longer works for them. They selectively screw a few people they promised to pay to fatten their bottom line and to turn towards more profitable situations…even thought they could have been honorable kept to their word. 

I was blown away by the true and humorous spot that exposed the Mortgage Banker's Association's hypocrisy. After thinking about it, I wasn't surprised. It's the status quo of the power wielding CEOs and politicians doing the old do what I say not as I do deal. So here's the story:

Hypocrite John Courson talking out one side of his face...

The Mortgage Bankers Association bought  a building for their headquarters 3 years ago for $79 million dollars with just 5% as a down payment. A real sub-prime dream deal that no doubt was packaged up with the rest of the crap they sold to investors, retirement accounts, and even other countries. The very sliced and diced crap they shorted because they knew it was going to fail. The Mortgage Bankers Association most likely could have continued to pay their payments but decided to default on their loan and walked away from it’s headquarters in Washington DC because it was so underwater.  This does have a familiar ring to it, no?

Many homeowners over the past few years have been dealing with the very issue with their slice of American pie, their humble abode, their home. For most homeowners there's significant anguish, guilt, and shame. There's also a fair amount of fear. They may ask themselves questions like: Where can we go?  What can we rent? Will anyone rent to us after with my credit is trashed from this default? Will I ever be able to buy another home? All legitimate concerns for sure. 

However, CEO, John Courson of the Mortgage Bankers Association added to the emotional burden for these homeowners in an interview about people deliberately walking away from their mortgages. He said that it was a “moral imperative” that homeowners need to continue to make their payments. (Mostl likely a position driven by his need to be overpaid for his services). This is an amazing statement coming from this pedantic, narcissistic hypocrite that strategically defaulted on his MBA headquarters loan that screwed the investors who bought their mortgage of $75m!  

So where did the MBA go? They rented just a few blocks away and they no longer have the nastily underwater property on their balance sheet. 

Am I advocating Strategic Defaults?  You bet because it's done by the very corporations who are buying elections and dismantling our middle class. I can't stand on ceremony and state that I don't advocate them when the CEO of the MBA has done it on a huge scale and represents the very industry that's party at fault for where our housing market is.  

My main message here is that if you are having trouble making mortgage payments, then a short sale may be your path to getting out with the least damage. You need a real hardship here. Get help sooner than later in this case. Visit: http://CTShortSaleInfo.com and https://www.hmpadmin.com/portal/programs/foreclosure_alternatives.html. 

If you can afford your payments and are considering a strategic default consult with your accountant and lawyer and weigh out your options carefully. Create a plan that will be solid for the future instead of sitting and waiting for things to happen. 

Want to laugh and get the sad truth that the real media wouldn't report? Watch the Daily Show's report about the Mortgage Bankers Association Strategic Default. It’s about 5 minutes and worth it.

If your a member of the Mortgage Bankers Association and don't like this blog. Too bad. The truth hurts. If you're not then you'll probably agree with me 100%.

One of my clients got behind in payments with an underwater mortgage and didn't want a foreclosure on his record. Although a short sale is not quite as damaging to one's credit as a foreclosure, it's still a significant hit. 

He attempted to try to short sale the house himself to avoid paying a commission. The bank told him to go get represented. Why? For one because they want a professional handling the negotiation and second, the bank pays the commission and not the seller who is obviously in arrears.

If you're underwater and behind in payments or it looks like that's where you're going you should consult with experts immediately. If there are two mortgages on the property this further complicates the process and extends the amount of time it takes to get everyone on board, but we have been successful in getting the sale closed more times than not.

Although banks do not have to follow the new government guidelines, HAFA (Home Affordable Foreclosure Alternatives Program) offers some incentives line $3000 in borrower relocation funds, $1,500 to servicers to cover costs, and up to $2,000 for for investors to allow proceeds to be distributed to subordinate lien holders.  The official Fannie Mae site that has this info and more is below:

https://www.hmpadmin.com/portal/programs/foreclosure_alternatives.html

The most important step in deciding if selling short is what is best for you is to become as educated as possible. The HAFA site above is a great place to start.

If you're a homeowner looking for a confidential consultation or further information without speaking to anyone then visit:

CTShoreSaleInfo.com. 

Get all the information you can so you can decide on what's right for you.