Replies to This Discussion

Permalink Reply by 23n386vtuwx5k on April 10, 2011 at 3:58am

I agree this has to happen despite the fact that lenders can not impose a specific brokerage to be used by the home owner. The lender may have to suggest 3-4 real estate brokers in the area who have history of performance with short sales. I am both CDPE & CIAS certfified working for a medium sized broker in Fort Lauderdale and Pompano Beach area and have closed many short sales with a variety of lenders already. The volume of work is on a constant rise. Ray Singhal

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Permalink Reply by Bill Groover on April 10, 2011 at 4:44am

My first thought is good.  It the lien holders could at least bring in some professional real estate sales peole who understand the side of the business banks have historically said they didn't want to do, and have proven they have no idea how to do, we could have an ally in the enemy camp.  Ceratinly any real estate company the banks used would have some fiduciary responsibility to them which I don't have, and when someone with a fiduciary responsibility says X= Z not X= A, you listen more closely than when the speaker only has a vested interest.

 

My big suggestion if they do something like that is make their brokers single agent without the right to transition to transaction broker.  Force them to be in the most trustworthy position the lienholder can get.  Then offer a 1.5% commission to the listing broker (minimal marketing, minimum showing, and compares to a relocation commission except they can be transaction brokers . . .), and a straight 3% to the Seller's broker.

 

Get appraisals, not BPOs, on properties when they list, and BPOs do not ever expire unless properties in the area begin appreciating or the listing agent notices some decredation in the condition of the property.

 

Give Seller $1,000 to move out, so "as is" in the contract actually becomes "as is" when contract signed and Buyers don't have to worry about what the place will look like at walk through.

 

At contract, seller's realtor is give the phone number of the next person up the food chain to call if they ever go 15 business days withont a answer to a question or a response to an offer.

 

Think those ideas would make life easier?

 

Bill

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Permalink Reply by Victoria Frieberg on April 10, 2011 at 4:53am

I am working with Kazork.com on a transaction now.  they work as the lienholders negotiator, per the lender, fully disclosed to all parties at inception of relationship and request for short sale.    all communication goes to one person, who in turn does all of the lender and middle man investor work.  i have one contact, they are paid 1% from the sellers side on the settlement statement, per lender. my contact is responsive, knowelegeable and altogether a refreshing experience.

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Permalink Reply by tim rogers on April 10, 2011 at 5:13am

Too many of us have seen the seller we know is going bad.  Banks have stood flat footed as they do not own the property.  The banks need to start engaging the brokerage community earlier in the process.  There is value to be had.  Agreed as to worry about liability, if banks just start getting sellers to use only approved Realtors.  And agreed there are way too many doing shorts that do not know that they are doing.

 

But I do applaud the fact that maybe, just maybe the banks are realizing that competent, experienced brokers, "consulted with early", FOR a FEE can and would have a positive impact on some of the sideways shorts that are doomed to foreclosure. 

 

"Maybe" sellers would respond better to a market based visit or consult from a Realtor the bank sent.  No obligation to hire but rather get useful information.  Seller and bank would have a better idea where the market is earlier, and then maybe find a way out.    The banks have operated on 0 cost of doing business for near 3 years now.  AND yet there is no standard, no hurdle, no rules on how to let a seller go, hang them w/ deficiency, make them sign note, re work the loan.  It is way to arbitrary, with too much leeway the banks have in how they treat the seller going bad.   AND this is all real estate, not just 'primary residences".  For too long the drumbeat has been about homes, many of the problems are w/ the investor property. 

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Permalink Reply by Paul Francis - Vegas Short Sales on April 10, 2011 at 6:09am

Interesting..  a lienholder can tell a title holder who they have to use to sell their home?

Sounds like Lawsuit Central to me and I'll just become a bird dog for a law firm if that comes to fruition.

 

I know Citimortgage is sending out referrals but they are certainly not telling homeowners who they have to use. (Interestingly, a couple of the referrals I saw were REO agents.)

 

Think the above through with the following questions and apply them to lienholders telling title holders who they have to use.

 

Would you tell a homeowner or buyer that they have to use a particular lender, title officer or home inspector?

 

Would you tell a homeowner that they Have to Use a Particular Attorney for legal advice? That they Have To Use a particular Tax Attorney for financial advice on the repercussions of doing a short sale?

 

If somebody takes you to court... are you going to hire their Law Firm to defend you?

 

There is a reason why we supply at least three referrals for real estate related services....

 

 

 

 

 

 

 

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Permalink Reply by Katerina Gasset on April 10, 2011 at 6:31am

The liability would be too high. It also is a huge disadvantage for smaller brokerages like Bryant's and ours. So hope it never happens.

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Permalink Reply by Jan Sanderlin on April 10, 2011 at 6:48am

The referrals are coming form third party intermediaries that have partnered with the banks...A referral fee will have to be paid to these intermediaries...Get out there and get in front of your clients and short sale candidates before the banks and intermediaries get there...That is the way to get the business...

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Permalink Reply by Raymond Kennedy on April 10, 2011 at 7:08am

Jeni,

Your Short Sales are getting easier because you probably handling them correctly. Keep in mind, the less experienced agents will still be sending in incomplete packages, poor follow up and lack of understanding on what gets these closed. I still keep hearing horror stories about Short Sales but for some odd reason I don't experience this myself, at least not to the degree these other agents are stating.

 

jeni lamberto said:

I disagree with the statement "Second, it is more control on their part, to partner with those who don't know a thing, then they can deny even more of them."

 

In my experience, I am seeing the lenders/servicers begging to get the job done. The approvals are getting easier every day. They are begging the homeowner to list and short sale their home. I am closing 7 transactions this month and all of the short sales were a breaze. I am not experiencing any pushback from the debtor's lenders. Once they see my package, they feel they can make a swift decision. Suntrust is the only one who still has a "sense of urgency," issue.

 

The privacy act will prevent agents from receiving leads from the lender. Making a list of "preferred," agents will create a dangerous "partnership," and the debtor's attorneys will be all over this.

 

What I am seeing is the lender strongly suggesting the debtor seek out an experienced short sale agent in their local market.

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Permalink Reply by Raymond Kennedy on April 10, 2011 at 7:13am

I have never seen a bank ask for in-house lender approval on any Short Sale and most of mine are BOA/BAC. I have seen this on REO's but never a Short Sale. That is interesting, that will never fly with me. They can't dictate this unless they are the owner. Yes, they may claim that the file will be denied but that to me would be blatant excuse to escalate.

Evelyn Santiago said:

BOA has been having a serious of workshops in my area to help us get better results on our short sales.  It's typical corporate propaganda and after the 1st one I don't want to drink the cool-aid (don't want to infringe on copyright sp wrong on purpose).  The banks idea of stream lining the process is to agree with them on their reasons as servicers for the denials that they give us based on their internal process.  The difference they claim between hardship and "inconvenience" is very interesting.  The process is getting better on submission of paperwork but since we are rarely able to discuss with the negotiator the deal its even more difficult to get them to agree. 

 

More and more of short sale listings are asking for "preferred lender" approval.  Do you know of any agent that is working with  a buyer that has not been pre-approved by a lender before they even show them a house?  This is just another way for the banks to try to lure the buyer to an inhouse lender so they can continue making money off the house.  The greed continues just in another form.

 

They get bailed out, they are making money, they took risks like everyone else but they continue to find ways to get more money from everyone while still cutting our commissions despite the fact that we are the ones that find the buyers for them to get rid of their bad performing asset with more money instead of going into foreclosure.  Banks never lose...only the homeowner and real estate professions by spending time and money helping them get rid of their bad performing inventory. 

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Permalink Reply by Amy Merrill on April 10, 2011 at 7:21am

To answer some of the comments that I came in while I was out working. The banks are not telling people what brokerage or agent they have to use. The purpose is to educate the homeowners on foreclosure alternatives. We explain what modifications are, re-payment plans, short sales & deeds-in-lieu.  We advise them that they have choices & encourage them to talk to the bank, an attorney, accountant and other Realtors as well.  IF the homeowner decides to use me to list their home as a short sale, I am working for them, not the bank.

I have taken several trainings, not for the initials after my name, but to make sure I am up to date on the goings-on.  Most of the training courses explain what short sales are, but not much more. Those are geared more to the agents who don't know if they want to get into short sales. Some of very good resources and if you obtain the certification, continue to train the certified agents on changes, etc.  As in any occupation, hands on experience is the best training around. You have to get your hands dirty to learn. I absolutely agree with that comment.  I have been a Realtor for 5 years, and have been doing short sales for 3.  I have closed about 88% of the short sales I have taken on.  The ones that didn't close were because the seller decided to do a deed-in-lieu or because that bank was just unrealistic about the market value (some were due to BPO's being done by out of area agents or even new agents without much market knowledge). Some were because those banks don't do BPO's or appraisals & only wanted a pre-determined % of the mortgage that was given. In one case, the buyer's agent who has never done a short sale, asked their loan officer, from the same bank step in, which just created misinformation & chaos.

In our state, we have to use attorneys, they are a part of every transaction.  However, I do the negotiating, not the attorney. I don't do this program for more referrals. The short sale is not pre-approved prior to the listing. IF the homeowner decides to go the short sale route, the bank then does an appraisal & then it becomes pre-approved, ie approved prior to an offer, not the listing. The bank is not advertising on my behalf, they are not paying for my training,  nor any collusion. I have no direct contact with the bank or its employees until I have a short sale package to submit. Once I have that short sale package, a negotiator is assigned. No differently than any other short sale that I have worked. The lender is not fixing the commission either. I have had several banks tell me up front they will only approve x amount of commission, usually only 2%. This lender is doing the same. They are approving the standard commission, not higher, not undercutting your commission, per HAFA guidelines. The lender actually isn't dictating the commission. They are just telling me up front their guidelines for getting it approved. In some cases, they are willing to approve more than the standard minimum commission as an incentive to buyer's agents. If that's considered by some to be commission fixing, I would have to disagree. Especially when some short sales in this area would only bring $300 to each agent, knowing I can get a paycheck of $1250 would certainly be an incentive to take my buyer to see that house. I guess I just didn't explain this well & don't know how to explain it better. I just don't understand why a listing agent in a short sale would deserve less than the buyer's agent, when the listing agent does so much more work?  That makes no sense to me & you would definitely end up with agents who have no experience working these short sales. As a result, you would have so many more foreclosures in the marketplace?  I think Tim R. understands what the banks are trying to do.  They are trying to get local help intervening with distressed homeowners & let them know their options.  There are so many homeowners out there that just don't know what their options are unfortunately.  I can only speak with the program that I am working with, but they are trying to avoid foreclosure, educate people on the alternatives, hopefully keep them in their home. If not, then they know there are other alternatives. I tell every potential client (short sale or not) they need to choose someone that they are comfortable working with. If that person, is not me, I wish them luck with the person that they choose.  I don't view other agents as competition, but as coworkers.  This is my career, this is how I feed my family, it isn't about the # of short sales I have closed or the $ amount of transaction I have sold for an award. My career choice was to help people sell their homes & have a smooth transaction, with short sales, it's to help them sell their home with some dignity & move on to hopefully rebuild their financial lives.

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Permalink Reply by jeni lamberto on April 10, 2011 at 7:26am

I totally agree with you Raymond, experience is key in a successful short sale. I am always nervous for certain sellers when I learn they have listed with an inexperienced agent to do a short sale. I have been fortunate enought that almost 100% of my business is coming from word of mouth, attorneys and cpa's eager to get their clients through the process. I will not have to wait for a bank referral and I am shocked that they are blatently violating the debtor's privacy. We'll see how that rolls out.  Unless there is a clause in the original note stating they can give their private info out to a local Realtor, I canot see how they have the right. The attorneys will line up to litigate this in the future and rightfully so.

 

If you don't know how to short sell your seller's home, please do them a favor and refer it out. A weekend seminar does not provide that experience.

Raymond Kennedy said:

Jeni,

Your Short Sales are getting easier because you probably handling them correctly. Keep in mind, the less experienced agents will still be sending in incomplete packages, poor follow up and lack of understanding on what gets these closed. I still keep hearing horror stories about Short Sales but for some odd reason I don't experience this myself, at least not to the degree these other agents are stating.

 

jeni lamberto said:

I disagree with the statement "Second, it is more control on their part, to partner with those who don't know a thing, then they can deny even more of them."

 

In my experience, I am seeing the lenders/servicers begging to get the job done. The approvals are getting easier every day. They are begging the homeowner to list and short sale their home. I am closing 7 transactions this month and all of the short sales were a breaze. I am not experiencing any pushback from the debtor's lenders. Once they see my package, they feel they can make a swift decision. Suntrust is the only one who still has a "sense of urgency," issue.

 

The privacy act will prevent agents from receiving leads from the lender. Making a list of "preferred," agents will create a dangerous "partnership," and the debtor's attorneys will be all over this.

 

What I am seeing is the lender strongly suggesting the debtor seek out an experienced short sale agent in their local market.

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Permalink Reply by Raymond Kennedy on April 10, 2011 at 7:29am

This will be a massive fail just like it was about a year or so ago when BOA/BAC attempted this through the equator system. I had agents soliciting my Short Sale listings when that all started. I had to call one broker about an agent that attempted this. Threatened to take them to the board if they continued this. I don't believe the agent understood it was not owned by the bank.

 

There was also another company called Titanium that did something similar as well but it was more geared at loan modifications. 

 

The only way this would work is if the seller signed an agreement with the bank that would turn over certain rights to the bank. As others mentioned this would be a huge liability and I don't see how the banks would consider it. The other liability as others mentioned would be on the broker/agent that took the leads. There would definitely be a huge conflict of interest because the agent/broker would feel obligated to work on the banks behalf in order to get more leads from them. Even if it is a third party providing the leads, you know there will be a correspondence on who gets the leads and how the agent performed. 

 

I am with RE/MAX and I don't approve of this at all. Like many of you over the past few years I put the money, time and effort into learning Short Sales and handing them over to agents because they have CDPE or other certifications is a joke. I have my CDPE and while it has a lot of good information it does not qualify you to negotiate a Short Sale. Only experience will qualify you for this.

 

Not worried though, it will not work and fail just like most of the other attempts did. Just keep doing what you are doing and all this hype will fade.

 

 

 

 

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