Replies to This Discussion

Permalink Reply by Laurie Clark on June 5, 2010 at 7:55pm

I say there are exceptions. Buyers can be replaced but it is not the norm and they do not even care. Even if they approve a short sale and THEY put the wrong buyers name on the approval letter ,you may have to start all over. ( I kicked , screamed, called, complained for 3 weeks and realized I just had to conform. I resubmitted the short sale)Or you may get lucky and get someone willing to go to bat for you and go the extra step(s) to make it happen, Most clock in and clock out, it is not there money, does not affect there life, so they do not care. I have seen and experienced both spectrum's.

On another I actually then received some other agents short sale approval letter. Vegas property the whole works. I am in Missouri and this deal was in Las Vegas. I s

Permalink Reply by Margaret C. Taylor on June 6, 2010 at 1:07am

WOW what fantastic information. However it still disturbs me that "money" will prevent the correct actions from occurring. Margaret C.

Ben Benita said:

Here is why short sales take SO long and, THE NUMBER ONE REASON FOR SAME:

B of A is known as a "loan servicer", whomever the Seller writes his/her check to is the "loan Servicer".

"Servicers" get paid to "service" loans on behalf of Investors, whomever actually put up the cash for your Seller to buy (could be Fannie, Freddie, the ShortSaleSuperStar Pension Fund, etc. I will leave CMB speak out of this to avoid confusion, but, most loans were sold off as securities and that only complicated matters further...no real need for you to understand THAT process too).

Servicing includes sending monthly statements to property owners, harassing property owners when payments are missed, coordinating escrow payments, etc.

Typically Servicers earn 1/4 point for servicing loans that are "performing", where payments are made on time, and, 1/2 point servicing loans that are "non-performing", i.e., your Seller is at least 30 days late.....
YEP, that's right, THEY EARN DOUBLE THE FEES ON LATE LOANS.....are the light bulbs going off yet?

Doing some basic business, (and you will RARELY see me defend ANY Servicer) exactly how hard do you honestly expect B of A to work in order to get these done quickly, when success, i.e, a closed short sale, to them means NO MORE CASHOLA!!!!
Good-bye getting paid DOUBLE the servicing fees.....if they drag your short sale out for months and months, more cash in their pockets and for their shareholders......though they appear to be making foolish decisions, like starting you over when a Buyer changes, in actuality, it is VERY SMART from a business perspective.

To get around this COMPLETE BS, I can not emphasize enough how important it is to find out who the investor is on the note.....armed with this information, if you contact the investor on the note with a fax or e-mail and something like:

"Dear Investor,
Do you realize how B of A is taking total advantage of you and over-charging you for Servicing fees...."

Get THAT message in front of the right eyes with the Investor and THINGS GET DONE!!!!

We first did this with a B of A short sale, similar to the above only the SAME Seller. B of A told us they needed an offer of $362,000, we went back to the Buyer, Buyer agreed to come up from $360,000 to $362,000. I faxed in the addendum stating same, and:
THEY TRIED TO MAKE ME START THE WHOLE PROCESS OVER....oooooopppppps for them. We got NOWHERE, even with our higher up contacts which just irritated me to no end.
NEXT MOVE -- we found out the investor on the note was Mellon Bank/Bank Of New York (we have several tricks for getting this information).
After some hours on the phone, I found out who was in charge of the Board of Director Meetings (that's how we roll), and when she found out what had happened and that B of A was TRYING to charge them unnecessary servicing fees......OOH LA LA....WHAT A BEAUTIFUL THING!!!!

B of A changed their pace in about 48 hours time (after the girl at Mellon Bank/Bank Of New York contacted them) and we had a new acceptance letter in hand, again, within 48 hours of contacting the Investor....

no games and no bull______ ....sorry, I get FIRED UP with this stuff.

There ARE ways to make most anything happen, in short sales and in life....hang in there....

Sorry the above is so long......I wish everyone all the best and hope the above helps!!!!

Permalink Reply by Ben Benita on June 6, 2010 at 3:44am

Laurie is 100% right, and ALWAYS keep in mind:

99% of negotiators DO NOT CARE ABOUT YOU OR YOUR CLIENT, they clock in, get abused all day long, clock out and go home....average length of employment for loss mitigation negotiators is 2 to 4 months

again, best way to get around the changed Buyer issue is to contact the Investor on the note, this is the entity that DOES care how long the process takes....

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