I know, I know I'm going to get hammered for this one but I have to ask opinions on this. It has dawned on me that as banks try to improve there short sale operations, homeowners begin reaching out for short sale guidance and agents KNOWING short sales comprise of a large amount of inventory are WE now the ones sometimes HOLDING up the short sale process and the speed at which these deals can get done???

The superstars on this site know the importance of professionalism and attention to details in this amazing and challenging niche however there are MANY that are unresponsive in getting proper documentation, collecting FULL packages, don't complete there tasks, and ultimately slow the process down.

So could it be that WE now are the ones who are sometimes the problem? Curious on everyones thoughts.

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Eric,

 

You raise a very interesting question.  And, by the way, I think its a great question.  The one aspect of short sales that I've noticed personally is, the majority of the agents on this site seem to represent the pride in this business, the desire to be a part of the elite professionals in a very tough and ever changing environment.  And, they think outside the box for innovative ways to get the job done.  I could be wrong but, the good precentage of the agents here seem to rise above the rest out there from what I've seen here.

 

I personally worked with 3 agents (buying agent, listing agent and selling agent) here in the Phoenix metro are on a short sale recently and was extremely dissapointed.  The property was a typical luxury home where the owner was underwater, but had not missed any payments at the start of the process, and was willing to sign a note.  Keeping in mind, there are many aspects of the business that are beyond their control, however I've always been a firm believer that you make your own luck.  One of the best ways to accomplish this is to start with good research and determine where the risks are.  My fault is that I too trusting.

 

My personal assessments of the agents were, I compared all 3 agent's professional and business skills to very similar skills required in my profession of project management and engineering.  My conclusion was, all 3 agents desparately needed a variety of improvement and, should take more pride in their profession.

 

Honestly, I saw more than 5 times the responsiveness and professionalism from my mortgage lenders than any of the 3 agents.  I researched all the agents on the state real estate directory and found out that the buying agent had 3 times more education in short sales than the listing and selling agents; although they had twice the experience he had.  In fact, the listing agent had no short sale education on record.  The buying agent was 3 times as responsive as the other two were, however as the buying agent, you're somewhat sheilded from certain process and negotiation knowledge.  The buying shortcomings were that he lacked confidence in short sales and, was reluctant to push for information.  And to top it off, in addition to the business and professionalism deficiencies, they all lacked grammar and writing skills.

 

The bottom line, before venturing into the short sale process I personally need to see a proven track record from the agents involved.  That process will continue to include personal interviews with various parties and required information about the property involved so that I can personally determine how risky the outcome is.  I'll attach a short sale addendum of my own that will require certain conditions be met by the agents involved.  If they can't sign the contract with the addendum included, then I'll move on to the next property.

Eric. Unfortunately there are way too many agents handling short sales that shouldn't be. In fact there are way too many agents handling real estate deals at all that shouldn't be. This has always been an issue in our profession and will be until the consumer starts doing their due diligence when hiring an agent. Ask for references and ask to see their productivity stats.

 

Short sales are not that complicated. There is no reason why all agents can't be proficient at handling them. Short sales are also serious business.

 

I'm going to make this article the headline for the newsletter today. So see what others think. 

Good question, I'd put a paycheck on the fact that a few negotiators would answer yes. We need to be as curtious and quick as possible in response to requests. I would imagine they have more detail that we and the whole process moves faster the fewer times a file has to be handled.

Very well spoken.    I agree there are agents that need to acquire training and stop doing short sales unitl they have the knowledge.  Appreciate your courage in speaking out

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Not just "now." For quite some time.

Great question.  I still think problems exist on both sides.  The agent should submit a "Complete" package.  The agent needs to make sure everything is there and current.  The agent needs to verify with the lender exactly what is needed and not just assume that one size fits all.  If the total package is submitted, the review of documentation process is usually relatively short.  On the lender side, there are still problems.  I was recently involved in a circle that was difficult to break loose from.  I sent in a current package and had to wait 4 weeks for someone to review it.  Then, when it was reviewed, they asked for current paystubs and bank statements.  They were submitted immediately.  Another 3 1/2 weeks later they asked for the most current paystubs and bank statements again.  I escalated this after sending in the most recent documents again only because it was 60 days old.  They got a negotiator assigned and now I'm awaiting their decision.  This was Aurora.  Bank of America advises that the equator system as the best way to communicate with the assigned person, but the messages for the most part are ignored and escalation is necessary to just get a response.  There are still plenty of problems on the the lender's side.  Is it better than it was....absolutely.

I think in the profession of real estate, we are lacking.  Independent Contractors MUST have so many skills that people that work on a time clock and clock in and clock out, do not.  That goes for every profession.  Independent Contractors that are successful generally have had other businesses of their own, know how to manage their time, know how to reach out for help and direction, and are willing to put in the extra hours if and when necessary.

 

Yes, many are lacking. especially short sales, but also in real estate in general.  Business is business.  Like Richard below, I find the AR Agents and SSS agents are the cream of the crop..

I don't think we Realtors are the problem. The banks should have hired by contract Realtors in each state they had a short sale or foreclosure to handle the short sales. They hired attorney's to handle the foreclosure but for the short sales they hired a hamburger flipper from McDonalds, when Realtors understood the process and legal contracts,etc. They would have saved themselves ALOT of money if they would have hired Realtors, required them to place their license in escrow and paid them 3% on each deal they closed. Now they are paying for benefits, vacation time and ultimately unemployment. I have sent a letter to Alex, the founder of CDPE and have not heard a word. If he has the attention of the Banks "servicers" they he should suggest that Realtors are involved, on behalf of the investor and servicer. It would have hurt no one if they had used this process. I've been in this business full time for 22 years and never seen such a mess.

There are agents who don't return your phone calls or respond to your e-mails who are doing short sales.  How can anyone expect them to be on top of the transaction or be timely in response to the lender demands?  Why would a seller hire an agent who can't even return your phone call or respond to your e-mail about their property? 

The agents on this site are the ones who do a good job for their clients and who care about being a professional however they are in the minority.  Until agents are held accountable for their actions or lack thereof I don't see much improvement.

I always write into my listings that the seller can fire me if I'm not meeting expectations.  That goes for short sales as well.  I also write in that I can fire the seller.  I set expectations upfront and I meet them.  Short sales are way too important for either party to drop the ball.  Nothing has changed where sellers think that all real estate agent are created equal.  Obviously, that is sooooooooo wrong.

Good morning everyone. Thank you for sharing and replying.

In no way am I exonerating the banks in this post. My concerns are

A.) SS comprise of a tremendous amount of business (At leat in my area) and so that attracks anybody and everybody to take a listing.

B.) Homeonwers are now "Jumping on the bandwagon" to try and get cut loose from the negative equity situation.

To me this is a perfect recipe for a glut of files that are not prepared properly and/or homeowners not coached/advised or care about the process in order to get files done.  If in fact "WE" are the problem then what is the solution?

Sites such as this are the start. Pro's who have pride, initiative and drive come here to share and get better. It is who we are and what we do. How do we take it a step further?

Are there initiatives to reach homeowners and educate them better that we can ban togther and create?

Is there a master council with local chapters in each city that can be formed?

Must Brokers be required to put all new agents through an apprenticeship program before releasing them out to the world?

Everyday I wake up and ask myself a couple questions. One of them is "How can I be better today"? So I also ask, how can we better manage the process, reach homeowners and educate them, push out Realtors who really don't care?

Hey Eric,

 

There will always be incompetent Realtors/Real Estate Agents, just like there are incompetent employees in all fields of employment. Perhaps a good way to approach someone whom you believe is not following up correctly is to prepare a checklist for the agent on the other side of the transaction. When sending them the checklist, tell them, "hey, I use this checklist when I submit my short sales, I thought it may help you to keep track as it does for me".

 

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