In most professional sports, contracts begin and end. Players who underperform are sometimes let go. Owners and managers are looking for the best of the best so that their team can win the World Series or be strong enough to head to the Super Bowl. In recent past, the Yankees and the Steelers had teams that worked like well-oiled machines. But, the question is: Do you?
With 2010 just around the corner, now is the time to evaluate your team and perhaps make a few trades. In the current "market of the moment" (the distressed property market), your team may include all of the following members: a licensed assistant, a transaction coordinator, title representative(s), FHA lender(s), a conventional lender(s), and escrow officer(s).
But, are the members of your current team qualified to get the job done? When I began my career in real estate, I thought "It's just a little transaction. How hard could it be to get it closed?" But, I slowly learned that if the members of your team are not qualified, experienced, hard-working, detail-oriented, then you'd better start rethinking your game.
With so many short sales on the market, working with a title representative who really knows about title and how to resolve title-related problems is absolutely vital. Don't just work with a title representative because he or she brought you doughnuts or a lovely pen. The title representative MUST make him or herself available to you at all times and be willing to go the extra mile to resolve any last minute problems that may occur.
Another team member that must be first rate is the buyer's lender. The buyer's lender must be experienced, professional, and responsive to phone calls and emails. He or she must also be detail-oriented, proactive, and always have a back-up plan. Since short sales and foreclosures are the most common transactions, meeting deadlines is a must. So, if the buyer's lender does not meet the qualifications I've noted above, it's time to go to the minor leagues and search for someone better for the position.
A third (and perhaps the most important-if you are living in an escrow state like California) member of the team that is crucial is the escrow officer. The escrow officer oversees the transaction and confirms that everything is done efficiently. With short sales, the escrow officer must obtain final approval on the HUD-1 from the seller's lien holder and must orchestrate an on-time closing-or else the property might go to foreclosure. This is an extremely serious matter. So, an escrow officer who claims s/he is very busy and cannot direct 100% of his/her efforts into your transaction needs to be dropped from the team.
When I think back to my naïve, innocent past (when I thought that a transaction was simple and easy), I realize now that my naiveté stemmed from one belief and one belief only: I actually believe that everyone involved in a transaction would equally professional, efficient, and detail-oriented. Sadly, that is not always the case. Now is a great time to "Fish or cut bait." Now is the time to restructure your team, hire new players, and retire those that cannot support the team any longer!
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