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“Experience is the name every one gives to their mistakes.”

By Lynn Pineda

Real Estate Agent with eXp Realty

March 22, 2011 10:42 AM

"Experience is the name every one gives to their mistakes",

Oscar Wilde, Irish Poet and writer declared.

Let me apply this thing called "experience" to that of being a Short Sale Specialist; Specialist defined as one who concentrates in a particular area and becomes most knowledgeable.

What has provided me with experience in selling homes as a Short Sale and I'm sure this can ring home with many who have actively chosen to specialize in Short Sales. How do you acquire valuable experience with Short Sales? Knowing what not to do:

Forgetting to list past due Association fees on the Settlement statement for Sellers Lender to approve or
For that matter, missing any fee to show on the Settlement statement that Seller's Lender must approve to pay, such as Taxes or other liens
Thinking that the condition of a Short Sale home is expected to be poor and don't recommend Seller to get home in its best light
Taking the Sellers word for it that they have just one mortgage
Not receiving all of the Sellers financial statements to be reviewed
Not knowing if there is a foreclosure filing and/or judgment date
Believing the Sellers Lenders negotiators word as gospel
Accepting "no" as an answer from the Sellers Lender to Short Sale approval
Accepting the promissory note demanded by Seller's Lender
Accepting the "no waiver of deficiency" by Sellers Lender
Allowing any offer to be accepted by the Seller
Not adjusting List price when no Buyer's offers come in to purchase Sellers home or letting a listing expire
Accepting a flimsy pre qualification from Buyer's Lender
Following up with the Sellers Lender according to their time schedule when they tell you to call back in 14 days
Allowing the Buyer to think the Seller will pay for what is customarily a Buyers closing fee just because it's a Short Sale and they claim it doesn't matter because the Short Sale Lender will pay for it.

Are you looking to sell your home as a Short Sale? Experience matters.

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Wendy Rulnick

Rulnick Realty, Inc. - Destin, FL

"It's Wendy... It's Sold!"

Lots of good points, Lynn. I especially like the one about not calling the short sale lender back for 14 days :) Suggested!

Mar 22, 2011 01:18 PM

Jim Frimmer

HomeSmart Realty West - San Diego, CA

Realtor & CDPE, Mission Valley specialist

Well, then, that means that I certainly have a lot of experience in my 50 years of life! J♪♫♫♪

Mar 22, 2011 04:17 PM

Ben Benita

Ben Benita - Gainesville, VA

Speaker, Author, Game Changer, Coach

You sure hit on some hot buttons...I have been negotiating short sales for agents for more than 6 years (Lynn contact me if you ever want to compare notes).....

Experience is a NASTY but very effective teacher when learning short sales....however, NOTHING will help you get short sales clsoed more than HAVING to get them closed in order to put food on teh table fo ryour family....ask me how I know this!!!!

All my best to everyone.....one of my favorites:

"Adversity introduces a man to himself." - Anonymous

Mar 22, 2011 07:04 PM

Maya Swamy

Funds Available - Long Beach, CA

Ph.D. Long Beach, CA - fundsavailable.com

I wonder about this thing called experience. Five years ago no one was doing short sales None of us knew how - we learned and refined our skills. Are we telling those who are getting their feet wet now they aren't capable of learning? I wouldn't dare. My advice is find a course and find a mentor.

Mar 22, 2011 07:27 PM

Wendy Rich-Soto, Realtor/Broker Associate

Keller Williams Realty, LA Harbor - San Pedro, CA

Getting you to your next with a zero failure rate!

Lynn,

Those are excellent reminders! Who ever thinks Short sales are easy...should really read your post! Selling a home today is tough! Selling a short sale takes know how and sometimes a little magic! :-)

Wendy

Mar 22, 2011 08:28 PM

Fernando Herboso - Associate Broker MD, & VA

Maxus Realty Group of Samson Properties - Clarksburg, MD

301-246-0001 Serving Maryland, DC and Northern VA

"Believing the Sellers Lenders negotiators word as gospel"

I can attest to this point. . .they are full of it!

Mar 22, 2011 11:24 PM

Broker Nick

South Florida Real Estate & Development, Inc. - Coconut Creek, FL

Broker Nick Relocation Broker Service

Lynn - it sounds like you have been down the road of shorts sales in South Florida - I remember when South Florida became almost 50% short sale in some areas hit hard. Experience does count for some things - especially shorts sales. It is a pleasure hearing from one of the agents I enjoy talking with and doing business with in South Florida.

Mar 23, 2011 12:17 AM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

Lynn. I know I have made some pretty stupid mistakes with short sales. Hopefully I only make them once and they don't cost me too much money when I do make one.

Experience is priceless.

Mar 23, 2011 12:36 AM

Tni LeBlanc, Realtor®, J.D.

Mint Properties, Lic. #01871795 - Santa Maria, CA

Tenacious Tni (805) 878-9879

Very true experience and the commitment to staying informed. I have learned by reading a great deal tactics to employ and mistakes to avoid. You have to stay smart!

Mar 23, 2011 12:58 AM

Michael Setunsky

Woodbridge, VA

Your Commercial Real Estate Link to Northern VA

Lynn, this sounds like you have been through the "school of hard knocks". You can't beat experience.

Mar 23, 2011 01:42 AM

Melissa Zavala

Broadpoint Properties - Escondido, CA

Broker, Escondido Real Estate, San Diego County

One of the things that many agents fail to understand about short sales is that the more short sales that you do, the better you become.

Mar 23, 2011 02:36 AM

Kevin Kueneke

Caliber Home Loans - Encinitas, CA

San Diego Mortgage Banker

Melissa hit the nail on the head. As lenders, we have programs that many loan officers are afraid to offer because they do not understand the process, e.g., certain down payment assistance programs. You learn as you go, but having a mentor to lean on is essential.

Mar 23, 2011 03:06 AM

Chris and Berna Sloan

Group 1 Real Estate - Tooele, UT

Tooele UT

Great information. We were lucky enough to get our "experience" when we had a short sale bump here in Utah 5 years ago. So, we were ready this time. It's gotten smoother, but by no means is it easy. Thanks for the post!

Mar 23, 2011 03:54 AM

Chris Olsen

Olsen Ziegler Realty - Cleveland, OH

Broker Owner Cleveland Ohio Real Estate

Experience, when learned from is so valuable. I took the SFR course (sanctioned by the NAR) and the instructor had never processed one short sale in his life as an active REALTOR.

Mar 23, 2011 03:56 AM

Phil Ormsby

Cabana Real Estate LLC - Parrish, FL

Cabana Real Estate - Live where you play!

Add to the list - not ensuring the buyer makes a worthwhile deposit with very clear rules as to how and when they are likely to lose it. That one thing has saved several of my deals from buyers choosing to just walk away before bank approval has been received.

Mar 23, 2011 04:47 AM

Lynn Pineda

eXp Realty - Boca Raton, FL

Real Estate Promises delivered in SE Florida

Thanks Lou, we find that experience truly is valuable

Wendy, thanks...and yes, don't you love it when you're told to call back in a week or two! HA

Jim, I'm right there with you....we have incredible wisdom after being around 50+ years!

Ben, so true....experience can sometimes feel nasty when dealing with Short Sales as making mistakes when you're dealing with a Distressed Seller who needs to sell their home as a Short Sale can have devastating results. And when you're "having" to get them closed like you mention can certainly benefit the distressed Seller - How do you know?Like your quote too

Long Beach first time Buyer, learning and refining your skills are key and yes, we all have to acquire the experience yet don't proclaim to be a specialist until you've acquired the experience and as you suggest, seek help until them. Don't wing it when your talking about distressed sellers

Wendy, thanks and oh how I sometimes wish for a little magic to make it easier!

Mar 23, 2011 06:44 AM

Lynn Pineda

eXp Realty - Boca Raton, FL

Real Estate Promises delivered in SE Florida

Fernando, it's funny isn't it how sometimes they just love to feel like they're in control

Nicholas nice to hear from you! Yes, Short Sales are all over South Florida aren't they and they aren't leaving anytime soon. I've been blessed with having gained experience in Short Sales in Coral Springs and other areas here in South Florida and nothing beats the satisfaction that comes from saving a down and out Seller from foreclosure. - very rewarding.

Bryant, oh how we learn from our stupid mistakes and what we have to go through to fix them certainly teaches you a very priceless experience, true.

Tri, very well said...you have to stay smart!

Michael, oh the school of hard knocks....we hate it when it comes along yet it is most valuable

Melissa, you're right and that is true with almost anything that we take on as long as we learn along the way.

Mar 23, 2011 07:01 AM

Sonia Dubois-VanNatter

Zdenek Law Firm, P.A. - Apex, NC

As a closing coordinator, all I can say is AMEN! to that post! I have seen so many of these mistakes made or agents who think that putting together a seller side HUD is something an attorney's office can do in a few short minutes without a title search, contract, ect. I love this post, thank you so much for putting it up. You just got a new blog subscriber =)

Mar 23, 2011 07:37 AM

Doug Bullwinkel

E Mortgage Capital, Inc. NMLS 1416824 - Roseville, CA

Mortgage Loan Officer NMLS #281609

Great list of excellent points to be aware of to make the short sale less painful. Thanks for the reminder of what works best.

Mar 23, 2011 07:31 PM

Lynn Pineda

eXp Realty - Boca Raton, FL

Real Estate Promises delivered in SE Florida

Hi Erica, That's a new one for me

Hi Doug, thanks for your comments and I"m glad to provide a reminde!

Mar 24, 2011 04:39 PM