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Short Sales- As The Short Sales Turn Reality Short Sales

If you work in Short Sales you will appreciate this As' The Short Sales Turn' Reality Short sales or should I say, sagas!

Nestor and I list a lot of short sales here in Wellington Florida and Palm Beach County Florida. Most of the short sale listings are in the foreclosure process. Because of the amount of short sales in our area we decided we would do a series about short sales where we explain the short sale process and the qualifying factors to do a short sale. From there we will be continuing the series with what the buyer needs to know about buying a property in a short sale and what the seller needs to do to complete a short sale.

We also hope this series will help the real estate agents in our area and around the country to understand the short sale process in order to better assist their buyers in procuring a house through the short sale. If the agent is listing a home that will need to be sold as a short sale he or she will know more of what is involved.

This particular post is letting you know some of the ups and downs within the negotiating process that we deal with on a day to day basis. Short Sales Wellington Florida

There are lenders who are efficient in their short sale departments and then there are, well, should we say, lenders who are just not from this planet!

We had this listing that we received an offer on and turned in a whole short sale package which on average consists of about 80 to 100 pages of documents and verifications. Nestor puts this whole package together, OH, BTW, you must add the loan# on the bottom of every single page before faxing it in, he faxes it to the lender. The next day, we find out that they just sold the loan to another lender! We call that lender and guess what! They had NO idea that the seller was in the short sale process. Needless to say, the whole process starts all over again and has been going on since November!

Now on another short sale listing, Nestor sends the package all in and the lender confirms they have received it. They order the BPO. We get the call that the BPO is being done and we are told when she turns it in to the lender. Then when Nestor calls the lender, they say they do not have the BPO! Well, we know they do. It was so funny because the person puts Nestor on hold, and while he is waiting, he calls the agent who did the BPO and she is telling Nestor that of course she turned the BPO in by the deadline the lender gave her. The person from the lender gets back on and hears Nestor and the agent talking and then says, " Oh, we found the BPO." Now this same lender calls our seller a week later and asks him how is his sale on his house coming along! He tells them, it is not coming along because you, the lender, is not doing anything to get this deal done and you have not approved the sale so how can it be coming along!

This one wins the boobie prize! One of our sellers calls the lender to ask them to help them out with a freeze on their interest rate as per our President's request to have the lenders work with homeowners who do not want to ruin their credit, etc. The guy tells this seller that they can not help them and that he does not know what they could possibly do. Then he is looking at their file about their property and says these words, " Gee, you can buy a house for only $150,000 the same size as yours there here in Texas!" They try to explain they are not moving to Texas and that they want to keep their house. He again says to them, "Why don't you move to North Carolina or something!" At least it wasn't someone from India telling them to move there! What a trip!

You must know what you are doing, be very patient and have very good communication skills in order to succeed in short sales. If you are an agent make sure you have a thick skin and are up to dealing in short sales. If you are a buyer who is interested in buying a short sale stay tuned for our series on short sales in Palm Beach County so you get all the information you need to know. And Sellers, you must choose an agent who has the skills and experience to negotiate with your lender and knows what to do in these circumstances should they arise.

Stay tuned for more As The Short Sales Turn as we share this Reality short sale series!

Contact Nestor and Katerina Gasset, CIPS, Realtors®, International Properties and Investments, Inc. Licensed Realtors® in Florida at 561-753-0135 to list your property for sale or to purchase a property in Wellington, Royal Palm Beach, Loxahatchee, Lake Worth, Hypoluxo Island, Lantana, West Palm Beach and the rest of Palm Beach County Florida. We are accepting referrals.

Visit our profile to find out more about our services. Call us today at 561.753.0135 or Toll Free 800.444.3316. Contact us by email if you prefer by clicking on email me on the right side of this page under our profile.

To view all the Wellington Florida Luxury Homes For Sale Click here and then click on Multiple Listing Search where the globe is on the right side of the screen that opens up. We know Palm Beach County and will help you get your home Sold if you need to Sell your home and help you buy your Wellington Home or Land ; call us today.

P.S. If you are listing your home as a short sale make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 561-753-0135 to find out more.

Posted by Nestor & Katerina Gasset Realtors® Wellington Florida Luxury Homes on 01/26/2008 03:24 PM

Comments (30)

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Originally posted at: South Florida Real Estate and...: Short Sales- As The Short Sales Turn *Reality Short Sales*

This post has been included in Florida Information Palm Beach County, FL Information Wellington, FL Information

30 Comments on Short Sales- As The Short Sales Turn *Reality Short Sales*

JAN

2008

I JUST FIGURED IT OUT.

The folks staffing the loss mitigation offices for lenders once worked with a major mortgage company here who arranged to have her desk beside the black hole.

Keep talking Katerina. I love a good mystery novel. Or is this a sit-com we're all living.

We have a short sale listed and the owners just moved out. They don't much care if it sells or not because they made the decision to move while their credit report would still let them qualify for a lease.

Homefinders, Real Estate in MD & VA, Lenn Harley, Broker, New & Resale Homes

Lenn- We have sellers like that too. We have a lady who was scammed by a mortgage broker to keep refinancing her house and her rental to the point where she owes 1 million on the two houses, the renter was a scammer who rented house to house without ever paying any rent. It took the owner a year to get her evicted. The seller knows she is losing the houses and ruining her credit, so she also moved out while her credit was still good to get a lease.

Yes, I think they worked near the black hole!

We have more sit-com or mysteries coming... just waiting for some closures in order to be able to speak up about it. Thanks for commenting.

Katerina: Thanks for sharing--it is amazing what is going on with the short sales and it only reaffirms by thoughts that it IS all about the lender--you MUST chose them wisely!

Debe Maxwell

Debe- We have no control over short sale lenders, those are noteholders. They sell these notes over and over again to the point where we rarely know whether where you pay your mortgage payments is a noteholder or a servicer for an investor who bought the note. Katerina

Katerina--I'm referring to how the clients got to the position to begin with!

Katerina, I have a question... I took a class this week on Short Sales and the trainer said to have your sellers NOT talk to the lenders;but to have them sign an authorization form so we as the Realtor could speak intelligently with the lender. What say you?

Katerina - representing a few buyers on short sales and after a few offers and rejections, I believe my patient buyer is losing his patience's and strictly looking at REO's only now. My other buyer isn't so patient and we have yet to hear back from the lender for approval or not and he already wants to cancel and move on. It's important to let buyers know if they are going to be dealing with Short Sales and Foreclosures/REO's that they need not have any urgencies or need to be in the house in a typical 30-40 close of escrow. Patience's is the key. I am going to be parking out here watching for the remainder of these posts for great advice and more information to help me become sharper in this niche. Thanks for all the hard work you put into your posts.

Debe Maxwell

Debe- Oh! Sorry! OK, I understand what you are saying now. Katerina

Missy Caulk Ann Arbor Real Estate

Missy- We always do the negotiating on the seller's behalf. The lender can still call the seller, but we admonish the sellers to refer the calls to us. We know what and how to say what to say. I agree with the trainer. Katerina

Gilbert Arizona Real Estate - Candace Robinson

As in both my posts in the short sale series, Short sales in Palm Beach County Part 1 and part 2. I suggest that you read both of those posts and even print them out for your buyers. Agents must explain to their buyers that short sales can take anywhere from 2 weeks to 2 or 3 months to get closure. You can make it faster if you go after the short sales that lost their buyer but have their BPO in. More on that all in my next posts. This series here is poking fun at their ineffectiveness and missed reality. Check out the series that I listed above for the consumers. That is a good and educational series. Katerina

Thanks so much!!

Missy Caulk Ann Arbor Real Estate

Missy- You are welcome. Make sure the trainers that teach this to you are doing it themselves. Katerina

Katerina, Thankfully I am finally figuring out what a short sale is thanks to your posts and some others on here. I always wonder if the average consumer knows what they are.....I hadn't heard of it until I got onto AR.

Carole Provenzale Owner, Feng Shui Long Island

Carole- More consumers are finding out about it because so many people are facing this situation. But most folks do not have a clue of how it works. Katerina

Hi Katerina...the Whole USA is having a Giant House Sale, and the customers want to buy, the suppliers(Realtors) want to sell and the store Clerks(Banks and Mortgage companies) are Out to Lunch or Gone Fishing !!

All the credit in the world to you, Nestor and others who handle a large volume of short sales. They take patience, understanding, a sense of humor, whiskey and sometimes a rifle. Thanks for these examples, Katerina. This is going to be a fascinating series, I can tell.

Fred Carver,Victoria BC Realtor

Fred- I LOVE THAT! I will have to add your comment to my next post in our short sale series! That is good!

Paul Slaybaugh, Scottsdale AZ Real Estate

Paul- The rifle sounds good! This one is the humorous or not side of short sales and our other series on short sales is about the how and why and stuff for consumers to know about them and agents to learn how to do them. I have 2 of the Short Sale- what you need to know posts up on the blog. Thanks for your comment and again, I love your humor, you make me smile. Katerina

JAN

2008

Katerina - I bookmarked both and by the sound of your experience you have a ton of patience's to hand the paperwork involved, not to mention the emotions of your clients. If you are getting deals approval in 2 weeks to 2 months you are doing swell, some lenders aren't even entertaining responses for months here. It's pretty stressful and I am sure then lenders aren't having fun either. I just wonder if they would rather it just go right to foreclosure at times...it seems that way at times. What say you?

Gilbert Arizona Real Estate - Candace Robinson

Candace- It does seem that way at times but the truth of the matter is lenders do not want to own all these properties. They have investors to answer to. They are overloaded with files. One negotiator Nestor talked to said he has 140 files on his desk alone. I am hoping to do an interview with him. Nestor is the one who talks on the phone to these lenders and Nestor puts together all the paperwork. I take care of the negotiations and emotional issues with our sellers, take it from the agreed contract to title to closing. It is a team effort and neither of us could do it alone, it is just too much. I also have my daughter helping with the files too. Katerina

Katerina: Hey, that's okay--I'm just on a lender rant right now! Thanks again for the great post!

Katerina, I've heard others tell of the note being sold to several lenders and having to start over several times. It appears that WE do all the work for so little compensaton, if any. I am trying to help a large number of short sale clients, but it is challenging to say the least.

Thanks for these lessons. I am looking forward to it! I have a had a couple of buyers that loved a house - only to find out (when we decided to write) it was a short-sale. They both ran the other direction because they needed a home now.

I dont think lenders realize that their "bad reputation" for handling short-sales - is hurting them because there are buyers being sacred away from an otherwise great deal.

KATERINA - I'm looking forward to reading more about short sales in this series. I do think that you have to be the right kind of agent to do these, and too many out there are doing them haphazzardly. This is one of the reasons that I have not been taking buyers to see these properties. Maybe my opinion will change once you put out your buyers series.

Debe Maxwell

Debe- I feel you are suffering from a deep emotional trauma state, it is known, as 'Lender causes traumatic stress syndrome', of which there is no known cure, :) Katerina

Bradenton Florida Real Estate - Dan Forbes REALTOR®

Dan- We have good ones and we have bad ones. We thought it would be a good release to poke fun and lighten up the experiences a bit. Yes, it is a trying time to deal with these lenders and their ill preparedness for this situation. Dan, since they almost always try to reduce our commission, we have been putting much higher commissions in our listing agreements to see if that will work, so when they negotiate it down, there is still some left. I find it odd, that the amount the investor will accept on a note as his bottom net is always something just enough to do the deal if the commission is lowered again! Katerina

James Downing

James- I don't think the lenders know to care! I have short sales in palm beach county part 1 and part 2 for learning about short sales. This series is more to poke fun, rant and share the ignorant behaviors of the investors holding the notes. Katerina

Adam Waldman - Long Island Real Estate

Adam- Thank you for commenting.

Here are the two short sale posts in the series, that give a good overview:

Part 1 is about what is a short sale

Part 2 is about who qualifies to do a short sale

This series you are reading now is really a series of poking fun and adding humor to the desperate situation we find ourselves in from time to time and to rant about the idiotic behaviors of lenders. Katerina

JAN

2008

We offer short sales, REO, and fixer uppers state wide. You can post your deals for free on the site or just add info@floridapropertyclub.com to your investors network and we will advertise them for you for free. We do not participate in negotiations and you will be the point of contact for all interested investors.

Cody Loughlin

Cody- Thank you for letting me know that info. In regards to investors buying short sales, several of the lenders we worked with have made the buyer promise they were the end user. Katerina

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