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So...What's the Difference Between a Pit Bull & a Good Short Sale Negotiator?

By Lola Audu

Real Estate Broker/Owner with Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate

July 08, 2009 11:23 AM

So, what's the difference between a pit bull and a Good Short Sale Negotiator? Possible answers below:

A. The patience of Job

B. A persistent capacity to hound loss mitigation specialists to give an answer

C. Lipstick

D. All of the Above

lipstick smile If you answered "D", you're right in my book! :) Seriously though, negotiating a Short Sale successfully is one of the most demanding aspects of the job for professional real estate agents today. The job is made even more difficult by the fact that the success rate is so low for so many. One instructor told me recently that he estimated the success rate to be 10%!

The problem with that dismal failure rate is that a Short Sale negotiation will often require 90% MORE work than a normal transaction prior to the sale, during the transaction and in closing the deal. This starts with the research. Many Short Sales are set up to fail from the get go...aka, the Listing Price.

Research...

A good Short Sale Negotiator will do extensive research to ensure that the home is priced appropriately to sell and should be able to document if required with comparables. Research also involves a thorough understanding of the underlying factors which may impact the ability to sell the home such as multiple liens, the owner's financial condition, the payment history on the mortgage etc.

Organization..

The closing file for normal transactions may look positively anemic when compared to the pile of documents which comprise the documentation necessary to close a Short Sale. Being organized will aid in the request for immediate action on a file which has languished on someones desk for months but now suddenly has a demand for an immediate closing!

Persistence...

In addition to the listing paperwork, the lender will sometimes request additional documents from the homeowner...MULTIPLE TIMES. As a result, it is sometimes expedient to keep all this documentation on file and continue to re-send it to loss mitigation who have a propensity to "lose" things...

Positivity...

Yes, I made up the word! But, how else can you describe the optimism required to keep on keeping on when numerous messages remain un-returned, buyers become as skittish as a deer on the run, and tempers flare up with impatience? The ability to keep all parties informed and moving in the same direction sometimes feels like a Herculean feat.

So, that's my list. What makes a good Short Sale Negotiator from your perspective?

*Short Sales are defined as properties which are sold for less than what is owed on the mortgage note. Audu Real Estate has successfully negotiated a variety of Short Sales with multiple lenders. Contact us for a confidential inquiry.

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Erin Golding

Hallmark Sotheby's International Realty Hopkinton, MA - Bellingham, MA

Lola this is wonderful advice! It may take some work but if you have the tools and tenacity short sales can be very rewarding. Not only are you helping a homeowner in need but you've got a client for life. Who will they turn to when they are looking to purchase again, you! Who will they send their friends, family, co-workers who are looking for an agent, you!

Jul 09, 2009 04:00 AM

Gene Riemenschneider

Home Point Real Estate - Brentwood, CA

Turning Houses into Homes

I am sure it is a tough job. When the Short Sales stop these negotiators can probably move on to tele-marketing. Or maybe work for the State Department.

Jul 09, 2009 04:12 AM

Joe Pryor

The Virtual Real Estate Team - Oklahoma City, OK

REALTOR® - Oklahoma Investment Properties

A team is our key. I handle the front end because I have 20 years of experience, and I have genuine empathy for the dilemna of a distressed homeowner. Charlene loves the details and the challenge of dealing with mortgage companies. By working together, and having a clerical worker, we avoid what I see is inevitable burnout trying to go it alone. Agents forget that the distressed homeowner can be time consuming because of their panic attacks. Why do we do it? First because we can, and second and most important, saving a homeowner from foreclosure creates raving fans like you have never had before.

Jul 09, 2009 04:24 AM

Svetlana Stolyarova

Local-n-Global Realty, Cleveland and International Real Estate Solution - Mayfield Heights, OH

Local-n-Global Realty, Broker 216-548-4663

Lola - excellent post! I would also add to your list the ability to build the relationship with the title agent, buyer's agent, loss mitigator (if possible) and to lead the group of all involved parties. In other words, team building and leadership are a-must skills. And - increduble politeness, no matter what.

Jul 09, 2009 05:26 AM

Tarris Rogers

Cascade Sotheby's International Realty - Bend, OR

Bend Oregon Real Estate

The crazy thing is, those banks that decline Short Sales that are brought to them by us agents because they believe their asset is worth more, end of foreclosing on them and sell them for even less than what a Short Sale offer would have pocketed them. What other insititution would allow that kind of financial mismanagement to go on?

Jul 09, 2009 05:29 AM

Anita S. Zahn

Advantage Realty 863-840-1420 - Sebring, FL

Highlands County Real Estate Source! I work 4 U!

I have to agree with Joe. We have developed a team so the realtors can get and sell listings and we have a person who works only on the banks and mortgage company submitting the offers and on the phone with them endlessly. We've been very succesfull this way. I try to make the transaction as easy as possible for the person handling the communicating with the banks and get them the entire package with the loan numbers written on each page, if I need to fax the papers thats what I do to help as of now I've only had 1 denied. Call me Crazy I LOVE SHORT SALES!

Jul 09, 2009 05:29 AM

Broker Patty Da Silva Da Silva

Green Realty Properties® - 954-667-7253 - Cooper City, FL

Top Listing Broker

Lola,

Very cute comparison and also very true. :)

I list short sale, sell them and close them successfully! But like Anita said above, I have developed a system that I work on every day.. really.. everyday.

I only take a short sale listing from a seller who is in distress, I list the property at the CORRECT listing price and make sure the buyer is not only willing but ABLE to purchase the home. Buyer agents like to sell my listings since they know they do not have anything to worry about. All my short sales have closed... with the exception of a seller who had an FHA loan, HUD denied the short sale.. go figure!

I LOVE SHORT SALES too! Every file is a RIDICULOUS amount of work and we often do not get compensated accordingly by the lenders but there is no better feeling that saving a seller from foreclosure.

Patty Da Silva CDPE©, RESS®, AHWD®, e-PRO®, GREEN

CERTIFIED DISTRESSED PROPERTY EXPERT© and Real Estate Short Sale Specialist®

BROKER Associate REALTOR® & Licensed Mortgage Broker - Senior Financial Advisor

United Realty Group - http://www.twitter.com/pattydasilva

Visit http://www.pattydasilva.com for SouthEast Florida's best properties.

Jul 09, 2009 06:05 AM

Lyn Sims

Schaumburg, IL

Real Estate Broker Retired

I was laughing when I saw your word positivity! Good post, congrats on the feature. Obviously people don't know how hard these transactions can be!

Jul 09, 2009 06:37 AM

Anonymous

Lydia

Great piece. Just sent your post it to the listing agent I am working with on a short sale. Am sure she will appreciate it.

Wrote the offer back in April. The Bank has since changed persons the LA was initially dealing with and, of course, paperwork had to be re-submitted. It is frustrating.

Thanks for writing something we can all relate to.

Jul 09, 2009 06:41 AM

#43

Lydia Burnett Etchen

CENTURY 21 Town & Country - Birmingham, MI

Great post!

Jul 09, 2009 06:46 AM

Lola Audu

Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI

Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Kristi, I have worked w/ a referral company a couple of times. It can be a good partnership, although there is a part of me that prefers to maintain control of the transaction.

Terry...quite a word picture there, LOL...sometimes feels like that is what is necessary though doesn't it?

Chris...and I say AMEN!

Katerina, you have developed a very good system & that makes a huge difference!

Bruce...:) that's courtesy of Sarah Palin.

Missy...w/ close to 70% of our sold inventory in either a short sale or foreclosure situation over a significant part of the past year, it's been imperative to learn how to do these transactions. When the going gets tough...the tough get going. Smiles look prettier w/ lipstick...:)

Jul 09, 2009 01:20 PM

Lola Audu

Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI

Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Michelle, working with a competent professional makes all the difference in the world.

jane-Anne...Lenn has a way of hitting the nail on the head! She's right & it's a point which is often not really appreciated.

Thanks Sharon. Although everyone has to start somewhere, it's really better to work w/ someone who has experience if this is the first time.

Wow Tim, there are so many odd things that come up in these negotiations. One could only wish there was some standards in the process...after all, we have been dealing with this nightmare for several years. Good luck on your deal. FUN. :)

Jul 09, 2009 01:25 PM

Lola Audu

Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI

Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Short Sale Pathways & Kevin Stroud w/ eSettle LLC, it is a lot of work to process these types of transactions. Always good to know about additional resources and services. Thank you.

Always good to have you drop by Diane. Thanks. :)

Patricia...the term is a classic misnomer in most cases...

Thomas...only problem w/ that solution is it will also kill the deal. :)

Erin, that's true.

Gene...LOL :)

Jul 09, 2009 01:31 PM

Lynn Pineda

eXp Realty - Boca Raton, FL

Real Estate Promises delivered in SE Florida

Lola....your points are great and I would add to it ones desire to truly help a distressed homeowner. Add your characteristics along with desire and you'll find a Listing Agent who will have a 100% Short Sale approval rating or very close to it. The low numbers indicating a lackluster approval rating, simply means that the Listing Agent is lacking in these characteristics.

Jul 09, 2009 01:35 PM

Lynn Pineda

eXp Realty - Boca Raton, FL

Real Estate Promises delivered in SE Florida

Jul 09, 2009 01:35 PM

Lynn Pineda

eXp Realty - Boca Raton, FL

Real Estate Promises delivered in SE Florida

Jul 09, 2009 01:35 PM

Lola Audu

Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI

Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Joe, the team concept can make all the difference in the world! These transactions can be incredibly draining on a number of different levels. Sounds like you have a good formula for service. Thanks for adding this insight to the discussion.

Svetlana & Anita...cooperation and teamwork make a tough situation more bearable. I like Joe's approach too.

Tarris...that is one of the most frustrating aspects of the whole negotiation. Sometimes, a poorly trained loss mitagator can cost the lender a ton of money when this type of incompetence comes into play. Most foreclosures are more costly to the lender than a skillfully negotiated short sale.

Jul 09, 2009 01:37 PM

Bill Gillhespy

16 Sunview Blvd - Fort Myers Beach, FL

Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Evening Lola, Your post is a very well written overview of the short sale process. Still many agents who treat them pretty much like a traditional sale !

Jul 09, 2009 02:08 PM

Danielle Pierce

Platinum Realty and Preservation - Chicago, IL

ADPR

As I write this, I have been on hold for over 25 minutes waiting for someone in the Loss Mitigation Department at Bayview Loan Servicing to answer the phone....Sale date is Tuesday. There is one offer on the table and the bank keeps saying NO, NO NO! Oh, the frustration....

In any event, this post was great and gave me the motivation to stick with it and not take "NO" for an answer.

Jul 10, 2009 09:23 AM

Ed Vogt

Midwest Properties of Michigan - Grandville, MI

Grandville, MI Midwest Properties

I have to go re-apply my lipstick - we got an answer from the first lender :) after 7 months (yes, I said 7 months) and the number 2 lien holder has moved to collections :(

Jul 14, 2009 12:16 AM