Banks Starting To Assign Short Sales Directly to Brokerage Firms?

Hearing through the RE Grape Vine, these are coming...we were sent a review from Citi in conjunction with Keller Williams that they were partnering on Short Sale/delinquent homeowners...heard also BofA is partnering with Re/Max....

 

What has everyone else heard? What are your thoughts? I prefer BofA shorts...I dont want to compete with Re/Max agents just because of a partnering...I have a short now witha Re/Max agent...its now on month 6....I would guess they would not want that agent...  

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In Hawaii, have not heard anything about this. Currently working with BOA, Wells Fargo and a few smaller ones, I do not believe any will be assigned. I know under HAFA, homeowner can choose. I would think this would be hard to put into place.

   Chase called me a month ago asking me if was able to take a listing, I informed him that I was but could not take it from him directly because it was a violation of our FREC law. He was amazed I actually knew what I was talking about and had the seller on the line and just got us together. The seller was happy with me and my attorney and I listed the property that week.

I think as Realtor we are challenged all the time. We have to be careful who we talk with on the phone.

Paul

Good morning fellow short sale specialists.

I have read lots of posts on this site and seldom felt the urge to post a comment but today is very different, I feel that I must comment on this critical issue.

I can't believe anyone could say they "do not see this being much different than REO shops".

It is very different!

At Platinum Worldwide Realty, we earnestly believe that a seller looks to a short sale specialist to provide them with their expertise in a manner that helps them achieve their objectives while doing everything possible to look out for them, and negotiate on their behalf to help them obtain a release from their outstanding deficiency.  We see ourselves as soldiers fighting to help our embattled sellers get out of a bad situation.

If a brokerage, or agent represents a lender, develops any kind of "relationship" with that lender, or receives a lot of sellers as referrals from that lender, they OBVIOUSLY won't want to "rock the boat".  They will take whatever the lender gives and won't do their best for the seller.  They will become simply another asset in the lender's arsenal.

Even worse, they will become a "WOLF IN SHEEPS CLOTHING"; offering to help seller's with their short sale while ACTUALLY representing the interests of the lender.

They will only do whatever it takes to protect their "golden egg" and protect their lender "relationship".

In an REO listing situation this type of one sided relationship makes sense.  The listing broker or agent represents the lender.  And, the lender is the seller.

In a short sale scenario, this is EXACTLY what a seller WOULD NOT WANT UNDER ANY CIRCUMSTANCE.

I agree with those that say that some brokers, agents or perhaps even firms will use this as a marketing ploy.  I would expect that the lenders will be very happy to help them lure prospective sellers away from short sale specialists that would actually have the seller's interests in mind to they can entrap them into a relationship with a realtor in their corner.

As we have already seen with the REO listings business, firms, agents and brokers will agree to anything in their desperate efforts to profit from this market and garner their opportunity to list bank assets.  They pay for repairs on behalf of lenders and basically do whatever it takes to get their hands on some of those coveted REO listings.

I for one will do my best to inform sellers about the inherent risk in this type of dual representation in a short sale situation.

To use an old but wise saying "YOU CAN'T SERVE TWO MASTERS"!

All of us at Platinum Worldwide Realty take pride in saying that WE WORK FOR OUR SELLERS.

Of course, I have to insert this caviat just in case: Our attorneys help us to ensure we operate in full compliance with the new MARS regulations so we don't charge our sellers any up-front fees and don't guarantee the end result or timeline.

We DO however absolutely take pride in helping distressed home owners get out of a bad situation.

We have no interest whatsoever in helping lenders find another way to wedge their greedy influece in between short sale specialists and the sellers they SHOULD serve.

It seems to me like there is mounting pressure on two battlefronts to get us "pesky" short sale specialists out of the bank's way.

On the one hand, I can see attorneys working alongside government officials and using their influence (perhaps even at the direction of the banks) to enact regulations purported to protect consumers and then one after another I see attorneys blogging and posting articles to try to scare realtors away from the short sale business.

On the other hand, the lenders are offering "cooperative" relationships with large brokerage firms knowing that they will be able to bring to bear the "golden rule".  That is: "he who has the gold, makes the rules".

I sincerely hope there is enough integrity left in this industry no to let that happen.

This is because we at Platinum Worldwide Realty honestly believe that those of us who specialize in short sales are entrusted with a truly unique opportunity in the history of this industry to be the KNIGHTS IN SHINING ARMOR who use our talents, resources and experience to come to the rescue of distressed home owners and provide them with a valuable service at no cost to them.  I sure hope that our industry won't squander that rare opportunity by selling their souls to the banks for the lure of more listings.

My apologies for the lengthy post but due to my personal, ethical and professional convictions, I feel very strongly about this issue.

Best of luck and Godspeed to those who strive daily to help the sellers whom you dutifully serve.

 

If lenders started assigning agents then call them hypocrites when you are forced to sign an "Arm's Length Affidavit."  That being said, lenders will not assign these things because of what everyone is saying. They don't own the property and cannot tell the homeowner who to "trust" because it would open up huge liabilities for the lenders if they did that. "My short sale didn't close and I got foreclosed on! I'm suing you (lender) and your agent you assigned to me!!!!!"

 

Seriously though, more training? Some agents could go through all the training they wanted and still have no frackin clue about dealing with short sales. How the heck is anyone going to train agents how to yell at lenders, call them out on their lies and deceit, negotiate away prom notes, negotiate away cash at closing and all other other hundred little things that make or break short sales?

Bryant and I will be at the KW training in Orlando on the 22nd and maybe we can post live from the training session. I do not believe that Citi is going to be choosing the agent for the seller, as a matter of fact, I know they will not do it.  I was in the original meeting and several thereafter with Citi Mortgage when this was all being discussed. As others have stated, the liability of suggesting an agent is too great for any lender.  The purpose I believe is to encourage more agents to get trained in short sales.  For each one of us on this site that understand short sales, there are hundreds of others who are taking short sale listings with no understanding of a short sale.
Yes, and those agents are considered "certified" by local training designations.
great idea..but my brain is now fried..lets start a 'making taxes easier' discussion!

Paul Francis - Vegas Short Sales said:

LOL! I've actually been looking for any excuse possible to break away from the taxes...

Time to come up with a short sale conspiracy theory to start up another discussion..

 


Victoria Frieberg said:

but don't you know that an active mind staves off alzheimers!  (and helps break the monotony of reviewing taxes!)
We have the training in Greenville on the 20th...I am with you on tons of agents not knowing what they are doing for the few of us who do...and I know the names offered to these distressed homeowners would be random and what not...but for the possibility of getting a lead this way...I also think about how most homeowners tell me they just dont even open mail anymore when it comes to their bank...when they find my team to list their property, usually they say they open it simply because it says...Property Information Enclosed...so I am just wondering if this will actually help at all anyhow...cheers if it does and helps us who knows the business...fingers crossed! 

Jeff Payne said:
Bryant and I will be at the KW training in Orlando on the 22nd and maybe we can post live from the training session. I do not believe that Citi is going to be choosing the agent for the seller, as a matter of fact, I know they will not do it.  I was in the original meeting and several thereafter with Citi Mortgage when this was all being discussed. As others have stated, the liability of suggesting an agent is too great for any lender.  The purpose I believe is to encourage more agents to get trained in short sales.  For each one of us on this site that understand short sales, there are hundreds of others who are taking short sale listings with no understanding of a short sale.
Just playing devil's advocate:  As a homeowner, I won't just trust anyone the bank sends to sell my house. The bank has let me down, so now I'm supposed to trust them with this?  RIGHT!   In fact, since it is still not the bank's property I probably wouldn't let the agent into my home.  I see lots of lawsuits and court cases stemming from this if, in fact, the banks decide to go this way.
Having the same issues here as well. First Franklin sent a BPO agent to my listing who is an idiot that tried to tell my seller that he had no choice but to drop the listing with me and had to list with him. Thank God he did not listen but called me right away. These unethical practices have to stop with these people. They cannot force our clients to list with someone they do not want to. In mosty cases our expertise and real experience does account for something!!!!

Hi Jeff,

 

I am a KW agent as well. Will the event be in April?

 



Jeff Payne said:

Bryant and I will be at the KW training in Orlando on the 22nd and maybe we can post live from the training session. I do not believe that Citi is going to be choosing the agent for the seller, as a matter of fact, I know they will not do it.  I was in the original meeting and several thereafter with Citi Mortgage when this was all being discussed. As others have stated, the liability of suggesting an agent is too great for any lender.  The purpose I believe is to encourage more agents to get trained in short sales.  For each one of us on this site that understand short sales, there are hundreds of others who are taking short sale listings with no understanding of a short sale.
i had that happen to me a couple years back..big team.  two agents showed up, walked past my sign, knocked at the door, my client, home from his recent heart attack, was told in no uncertain terms that they were his agents now, assigned by his lender, and he was to cancel with me!  He just about had another heart attack..I called their office, their broker and the individual agents listed under the brokerage.  Kick myself for not pursuing with Commerce dept.  Not one of them replied..and not one of them answered their phones. Now that I think of it, I have not seen their team name in over 2 years, maybe someone else was not to busy to deal with them.

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