Replies to This Discussion

Permalink Reply by Samson_is_Furry on May 2, 2011 at 2:19am

I've decided to go with the realtor that will do the negotiations herself. My reasons are:

1. Significant experience closing short sales.

2. Her focus is short sales, which assures me she will be invested in our case.

3. I am confident that I will be able to speak directly with the person negotiating on our behalf.

Those things may be true with a third party, but there are simply too many additional people involved for my comfort.

Thanks for everyone's excellent advice. I appreciate your willingness to share your experience and knowledge.

 

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Permalink Reply by Jeff Payne on May 2, 2011 at 3:42am

Good luck Mike, good job with analyzing and find the one that fits your needs!  Keep us posted please

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Permalink Reply by Elvia Bahena on May 2, 2011 at 4:47am

Well here in CA any 3rd party short sale negotiator has to be licensed. But remember they are a 3rd party company and if I recall every 3rd party companythat I have interviewd has a Hold Harmless contract putting the responsibility/liability back on the agent/broker if any issues arise. The majority of these companies do not take on the liability. It's still your listing not theirs.

Harry Clay said:

Did anyone ever stop to consider the idea that an agent who doesn't have extensive up-to-date short sale legal training & certification quite possibly shouldn't have taken the listing in the 1st place?

Just because someone has a pleasing personality, along with a general contractor's license, doesn't mean that person who normally does room additions is qualifed to sign on to construct a skyscraper (even with help from 3rd party consultants).

Smitty said:

...So I actually think an agent who hires a 3rd party company that doesn't have a lot of experience in short sales is doing EXACTLY what they should be.  They DON'T want the extra work OR LIABILITY associated with a short sale, so they hire a 3rd party company to do it for them.  I would much rather deal with a 3rd party company that negotiates 24/7 than an agent that has no experience.

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Permalink Reply by Alyce Nelson on May 2, 2011 at 5:31am

I am both a 3rd party negotiator and CDPE Licensed REAgent and tell you from experience a CDPE certification is no guarantee, just means they passed the test, experience is key.  I agree with Jeff, ask them for proof of their number and/or a referral.  Also ask for proof of MARS compliance, I had all my docs redone to be MARS compliant.  3rd party negotiators get a bad rap, all the ones are know are solid and ethical business people who abide by the rules and charge reasonable fees.  I don't like the agent stuff, but LOVE negotiating short sales and am very good at it... a 95% success rate for a negotiator actually sounds low to me.  I have a SS with NFCU going right now and it’s going well, but it’s an easy one, so probably not a good test for your situation.  In general, credit unions will push harder for a seller cash contribution and/or prom note, there also seems to be a greater percentage of MI (Mortgage Insurance) on credit unions loans, so be sure to ask up front if there is MI on the loan.  If there is, you can probably count on a cash contribution at close... can get nasty.  Be sure who ever does your short sale has experience with credit unions and MI.  A good negotiator will know how to navigate this scenario and get the job done.  Since you asked… I’d vote for the 3rd party negotiator ;)  All the best!

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Permalink Reply by Daphne Nelson on May 2, 2011 at 7:15am

Alyce,

 

I'd really like to talk to you about your response - it doesn't necessarily pertain to this particular conversation string, except in a personal way.  I hope you don't mind sharing.

 

You can reach me at [email protected]

 

Thank you!

Alyce Nelson said:

I am both a 3rd party negotiator and CDPE Licensed REAgent and tell you from experience a CDPE certification is no guarantee, just means they passed the test, experience is key.  I agree with Jeff, ask them for proof of their number and/or a referral.  Also ask for proof of MARS compliance, I had all my docs redone to be MARS compliant.  3rd party negotiators get a bad rap, all the ones are know are solid and ethical business people who abide by the rules and charge reasonable fees.  I don't like the agent stuff, but LOVE negotiating short sales and am very good at it... a 95% success rate for a negotiator actually sounds low to me.  I have a SS with NFCU going right now and it’s going well, but it’s an easy one, so probably not a good test for your situation.  In general, credit unions will push harder for a seller cash contribution and/or prom note, there also seems to be a greater percentage of MI (Mortgage Insurance) on credit unions loans, so be sure to ask up front if there is MI on the loan.  If there is, you can probably count on a cash contribution at close... can get nasty.  Be sure who ever does your short sale has experience with credit unions and MI.  A good negotiator will know how to navigate this scenario and get the job done.  Since you asked… I’d vote for the 3rd party negotiator ;)  All the best!

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Permalink Reply by Lillie Handy Dominguez on May 2, 2011 at 8:06am

The 1st agent with CDPE that has closed at least 60 short sales sounds very promissing.  You would have direct contact with the actual person doing the short sale.  The less parties involved, the better, in my experience.

 

How many transactions has the inexperienced agent had with the 3rd party company?  Numbers are important in addition to successes.

 

Whom do you feel comfortable with and feel you can trust?

 

I like to do the negotiating myself and have done at least 30 short sales.  There are no guarantees of success, however, having the knowledge, experience, training and direct contact with the Borrower, bank and negotiator, & the other Agent is crucial.  The person doing the short sale with a high success rate already has a system in place and has dealt with many banks.  The success of a short sale is subject to several factors - the Agent's experience, persistence & skill in solving problems, the bank, the negotiator, the purchase offer & Buyer's ability to be patient with the process and finance it ,and the BPO.  Also, the cooperation of the Borrower of course.

 

I've heard about successful 3rd party companies from agents that use them.  So some companies are also experienced and have the numbers, however, I've heard some agent decide to finally do them themselves because of the control and communication.

 

As others commented - check their numbers

 

Good Luck,

Lillie

 

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