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SHORT SALE HORROR STORY......AGENT COMMISSIONS CLOSE THE DEAL

By
Real Estate Broker/Owner with people first...then business Ran Right Realty 636943 licensed to thrill

I have been working on this particular Short Sale for almost 2 years.....it doesn't matter why it has been taking two years as we all know that the banks and their systems excel at prolonging this no matter what you hear. I was expecting some really good news any day

WELL, I GOT SOME NEWS ALRIGHT.....

After weeks and weeks of final wrangling and negotiating and entering the countdown mode, I get what I consider to be a devious, unprofessional response-tactic out of no-where....But, before I reveal it, I want to recap some of the events...as follows:

1. We had to deal with a first called EMC who was cooperative, but not timely. 

2. The second was the infamous BofA. They did not disappoint me in maintaining their reputation for ineptness, unprofessional-ism, indifference, playing dead, and not-responding or caring one iota.

3. The investor who popped out of thin air...virtually no-where that we never knew about. This man absolutely refused to accept 3 BPO's and 2 Appraisals that established the values. He waited until the last minute (along with BofA) to let me know that they want another appraisal and more settlement money.

4. AND NOW THE ULTIMATE......I get an email from BofA that their mortgage company that insures them wants the following:

The Mortgage Insurance company has requested an additional $10k and will not release the lien until they receive $10k. This can come from the borrower, the agent, the buyer or a combination of all of them. Please be advised this is no negotiable and if the value can not be met then the file will be declined. Please notify me right away once you have discussed this with all parties.

When you take each situation indivudually, it appears to be like a check-off list and if you proceed with the list, you will ultimately have a successful short sale. But consider:

  • First doesn't know what the others are doing nor do they care.
  • The second is more indifferent than the first and cares even less if you can get a hold of anyone so that they can tell you...... they dont care.
  • The investor is independent of everyone doing what he pleases and times this whole thing to maximize his position.
  • The Mortage Insurace people expertly play: MY WAY OR THE HIGHWAY

THE SOLUTION FELL ON THE AGENTS.......WE WORKED FOR FREE

Now, neither the seller or the buyer has additional funds. The market has steadied and there is even reports of declining values. Both agents had a heated discussion on taking the $10k out of commissions and that is the way we are proceeding. We do this for two very good reasons....

1. To protect our clients. Mine has had two nervous breakdowns and the husband is in the military fighting overseas. His last words to me were...please get this done right away so we can start fresh. The buyers agent will be out money, time and a home

2. To have to go through another year (or?) and 4 entities to get another approval, appraisals, BPO's, settlement letters plus non-responses, no cooperation, no negotiation, and no way to close unless the four agree in a declining market under the threat of imminent foreclosure...........is too much

Glenn Roberts
Retired - Seattle, WA

Good luck, Richie. Hope you finally get it done. It will be a blessing to get it off your back.

Nov 23, 2010 03:27 AM
Brad Rachielles
CENTURY 21 Peak, Ca BRE# 01489453 - Upland, CA
REALTOR, CDPE, Upland, CA

Richie,

What a wonderful example of puttung the client first. Just so others know, California is a Fiduciary state and it can happen that putting the clients interests ahead of your own CAN result in working for free. Well written - The facts stink - but your post has been recommended. Happy Thanksgiving!

Nov 23, 2010 03:28 AM
Terry McCarley
Coastal Real Estate - Cape Coral FL - Cape Coral, FL
REALTOR, SRES, CDPE - Cape Coral, FL

Richie,  This shows what a true professional you are.  The banks are being ridiculous and of course BoA beats them all.  Short sales are an enormous amount of work and the banks need to wake up and realize that.  It is truly a shame you worked for free but I admire your attitude.

Nov 23, 2010 03:33 AM
Jessica Leimback
Agave Homes & Investments - Mesa, AZ
Broker,SFR,CNE,CSSPE

Brad I second that in AZ. Richie great job and give yourself a pat on the back. Nothing at this point will get you redemption for your lost wages. I gave up only $2000 on a deal but it was small at that was all of the commission to pay off the 2nd lender. We ARE obligated because CHOSE to help. It is like when we choose to start CPR we cannot stop until we pass out or help arrives. You did the right thing and you are an example of the best of us.

Nov 23, 2010 03:35 AM
Leigh Ann Holman
Leigh Ann Holman - Century 21 Glover Town & Country - Clarksville, AR
REALTOR - Century 21, River Valley, Arkansas (479)774-5166

This sounds like a horrible situation and I would love to shake your hand for what you've done for that couple.  Your light shines to others Richie, as you may already know.  I commend you for being such an awesome person! 

Nov 23, 2010 03:35 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Glenn...That's how I feel. We are all exhausted. I take heart that my clients and the buyers will reap from this....My seller was worried about how this would affect his military career..now he gets closure for Xmas

Brad...my peer and colleague I thank you. Your comment is ride on and I am glad to have this experience on my resume and in my conscience....I gave my word to my clients when we first met...that I would help them.

Hello Terry...thank you because your words are part of my reward and it is sufficient......

Jessica...you moved me with your comment....Your example of CPR is relative and brilliant....

Leigh Ann....I am humbled and thankful to be acknowledged by you......deeply

 

LADIES AND GENTLEMAN, I AM GRATIFIED AND VALIDATED AND YOUR COMMENTS ARE LIKE A TONIC WORKING ON ME....with thanks

Nov 23, 2010 03:47 AM
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Richie - I'm neither surprised by the actions of the lenders nor your response. PEOPLE FIRST...THEN BUSINESS.  Great work and good luck with closing!

 

 

Nov 23, 2010 05:21 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

John....one of my favorites.....Well wishes from you mean something...thank you

Nov 23, 2010 05:24 AM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Richie: 

There is no way I wouldl argue that you are making a good or bad decision. . I know there are  1000 other steps you went trough to get to this point.

It saddens me that it came to this point for you.

The lenders have learned how to take advantage of this situation and it shows how little is the respect they have for us.

I have crossed the same bridge many times before and I can tell you without a doubt that you will be compensated in one way or another.. .that has happened to me many times before.

 

People first? 

Yes!

Nov 23, 2010 07:51 AM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Richie: 

There is no way I wouldl argue that you are making a good or bad decision. . I know there are  1000 other steps you went trough to get to this point.

It saddens me that it came to this point for you.

The lenders have learned how to take advantage of this situation and it shows how little is the respect they have for us.

I have crossed the same bridge many times before and I can tell you without a doubt that you will be compensated in one way or another.. .that has happened to me many times before.

 

People first? 

Yes!

Nov 23, 2010 07:51 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Fernando.....que bueno.....your comment is the stuff of clouds and candy, dreams and soft winds. Like a salve for a wound....My friend, the day I found out that the wife of my client was in emergency not once but twice made me take a seriously hard look at what was going on. I asked the husband, what is she in for..? He said stress (nervous breakdown)....she couldn't handle losing their money, their home dreams, opportunity and then I find out that the mans commanding officer doesn't approve of the short sale and that it can affect his re-enlistment. I was forced to realize how we all have stakes in the game of life.....I had to get this done......Your a good man...thank you for your encouragment and I accept your comments.....

Nov 23, 2010 08:05 AM
Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Richie,

I believe that the Universe has a way making these situations right over time. Call it Karma, or whatever, you will reap the rewards for what you did.

Rich

Nov 23, 2010 01:15 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Rich to Rich....I totally agree about things being made right and wrongs corrected too....I just got an email from the other agent who is having a tough time with it. When you need money (or anything), it distorts your reality and reduces your faith...One thing we have discovered is that it all goes on....yes? thanks pal

Nov 24, 2010 02:24 AM