THE PLOT THICKENS! BANKS ARE NOW CALLING REO AGENTS TO LIST SHORT SALES!!

I never doubt the ability of banks to spread their business model. It always seems to be about profits and dancing around regulations… 

They have been doing this in our area for a little while now.  They as far as I am hearing recommend an agent and in many shortsale situations the owners don't really care and just use the banks agent

It is an interesting approach to controlling/determining which real estate companies will continue to not just thrive but possibly stay in business. With the increasing percentage of both REO and short sales compared to "organic" resales, this will probably have an extraordinary influence on the business.

Lenn - I'm very selective of my clients, and most banks have no chance of getting me to list their homes. I've had enough of dealing with clerks who could care less about their clients. We have plenty of other business to keep us busy.

Lenn ~  Just a few thoughts?  I have some experience with Short Sales but more with Foreclosures.  I do NOT like what I have experienced with the banks on the short sales.  Is not and will not be fun.  

Hi Lenn - You are absolutely right.  Short sales get around the murky foreclosure problems.

Lenn, DO they have the right to "steer" the seller of a short sale home to an agent of the banks choice? After all, it is still that person's home, not the banks.  And why would the person selling the home trust the banks choice of realtor when in reality the bank hasn't dealt fairly with them in the first place (in most cases.)?

Lenn...

Without thinking too much, it sounds like a good thing to me.

But let me think about it!

Lenn. I just took a short sale listing today that was given to me from an asset mangemnent company. They are working for the lender and contacting sellers that are extremely delinquent. Supposedly the lenders have already agreed to the price. My listing agreement is with the seller. I have ZERO agreements with the asset mangement company. However all offers go to them first. Then they pick the highest and best and send it back to me for the seller to sign off on. I am not involved in the short sale. Just the listing and marketing of the property. I get full commission.

They also stated that the foreclosure process runs simultaneoulsy. If the property does get foreclosed on then I get the REO listing.

I took the listing because I want to learn more about this. And you can be sure I have disclosures to cover my rear. I also have direct contact with the seller. All communications related to the selling of the property go through me.

Fascinating.  It was never a matter of if... but when.    I have spent the last 7 years on shorts as a broker and have never had to buck up to the bar for REO's.    It will be very interesting to watch and see how this develops.  

This is just plain scary, as if the REO agents have the time or even WANT to do short sales.  REO's are so very much easier!

I went back and read the link in comment #5 and it sure makes my head spin!

Lenn, thanks for always sharing breaking items in the short sale/reo venue...interesting reading Bryant's comments...i think i'll wait to see how this comes to be & whether it will be the norm...

Wire pulling seems to be my favorite term on your list with driver's seat coming in a close second.  You are preaching to the choir here, but please scream louder so more might hear!

It's certainly a different era of real estate we are entering!! And you know...I can't blame the banks one bit for wanting so much control over the short sale process. It's been 5 years and still most agents don't have a clue about how to propertly handle short sales. I can't even imagine how much crap the negotiators for the lenders must see on a daily basis.

As a profession we had our chance and we blew it.