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So I told Wes Foster.....No More Short Sales

By
Real Estate Agent with Century 21 Redwood DC-SP98366576

I have been tossing this issue around. I probably have worn out my welcome with some subscribers.

Sorry.

I just can't let it go.

The multiple listing service in this area is becoming clogged with short sales. I know some of them are being done in an orderly fashion. I know that most of them are not. I know that some of those being done in an orderly fashion have no assurance from the lender that they will review any offers.

Well, I think there is only one group that can put a stop to the madness.

It is us.

I have written Wes Foster (the big guy at Long and Foster) and asked him to institute a company wide ban on taking any short sale listing that have not met the following guidelines:

  • a complete short sale package has been presented to the lender(s)
  • a detailed approximation of the property value has been sent to the lender(s)
  • a communication has been received from lender(s) that they will consider offers

If we draw the line in the sand, we will then be offering homes that are actually available for purchase to consumers. The public, as well as, agents have the right to transparency regarding these listings.

It is time all agents began to take another look at the costs of listing homes that can not sell.

If we clear the clutter from the multiple listing service, we may move towards reducing the viable inventory that is on the market.

Some one has to step up. I hope Wes Foster takes the lead.

Comments(24)

Jean Powers
Kane & Associates call 510.908.9002 - Alameda, CA
CRS,e-PRO,HAFA,SFR Broker, Northern California

The mls's don't have the authority to make these types of guidelines.  What I have found that sellers are listing their homes that are short sales with incompetent agents. I just wrote on one with a listing agent not in my area who said she gave it to somone else to negotiate with the bank (not the same offices) This agent markets herself as an expert. There was another offer submitted before mine and the agent said it was $5000 more than mine and she gave me an addendum putting my buyers is back up position. I am not an expert with short sales but I said it is not she or the seller's  decision to put someone in back up position the offer is suppose to be submitted to lender and they make the decision, the other offer came in at a much higher price with $15,000 credit back to buyers. We then wrote a counter offer which is what she should have used and raised the price equal to the other offer without a credit and I have not heard back from her! This is what bothers me!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apr 16, 2008 03:55 PM
Tchaka Owen
Galleria International Realty - Hollywood, FL
John, having recently been burned by Ocwen (and hence burning my client), I must say that I like your proposal. 
Apr 16, 2008 04:15 PM
Liz Moras Migic
Chilliwack, BC
Chilliwack, British Columbia - Realtor
And here I am your neighbour from up northand I've heard people posting about 'short sales' left right and center, AND I Don't have a clue really what they are.....I know they're talked about hand in hand with foreclosures.....I think i'll have to look it up on Google!  But I'm guessing we're lucky we don't have them here...yet...
Apr 16, 2008 04:40 PM
Jennifer Monroe
Indigo Home Team powered by Compass - Charlotte, NC
Real Estate REALTOR®/Broker/Designer
Great idea JMac! Until reading this, I had no idea that lenders were refusing to  respond to short sale offers. I steer clear of these for the most part. Why would a broker even consider taking a listing with no chance of closing?
Apr 17, 2008 02:42 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA
John:  I couldn't agree with you more.  I just posted a blog to our Northern Virginia Long & Foster group about needing a day trip just to reset.  I have become a pain in the a** for my Broker about this issue as well.  I am trying to be positive by educating the agents in my office and in my local association.  I've collected all the short sale information I can, and I really think the missing link here is 100% us.  I'll send a letter to Wes too.  The more the better.  Garbage in=garbage out, right?
Apr 17, 2008 10:19 AM
John MacArthur
Century 21 Redwood - Washington, DC
Licensed Maryland/DC Realtor, Metro DC Homes
Kim - Thank you. It can begin with you. We can stop the madness one agent at a time. We just have to believe.
Apr 17, 2008 10:51 PM
John MacArthur
Century 21 Redwood - Washington, DC
Licensed Maryland/DC Realtor, Metro DC Homes
Katie - I think that is another method of handling this situation. I do the same.
Apr 17, 2008 10:53 PM
John MacArthur
Century 21 Redwood - Washington, DC
Licensed Maryland/DC Realtor, Metro DC Homes
Bill - The change in commission, which is a tort violation to introduce, is a small problem compared to the problem of everyone accepting that each of us can choose to enter whatever we want in the MLS.
Apr 17, 2008 10:54 PM
John MacArthur
Century 21 Redwood - Washington, DC
Licensed Maryland/DC Realtor, Metro DC Homes
Jonelle - Thanks for your support.
Apr 17, 2008 10:55 PM
John MacArthur
Century 21 Redwood - Washington, DC
Licensed Maryland/DC Realtor, Metro DC Homes
Jean - It is difficult to measure competency when there are no rules or guidelines. I can't blame agents totally when everyone is on a different page.
Apr 17, 2008 10:57 PM
John MacArthur
Century 21 Redwood - Washington, DC
Licensed Maryland/DC Realtor, Metro DC Homes
Tchaka - I know how you feel. I appreciate your comment.
Apr 17, 2008 10:58 PM
John MacArthur
Century 21 Redwood - Washington, DC
Licensed Maryland/DC Realtor, Metro DC Homes
Liz - By all means google them before they begin making an appearance in your area. At this point, they are similar to grizzlies....we know what they are and it is best to steer clear of them.
Apr 17, 2008 11:00 PM
John MacArthur
Century 21 Redwood - Washington, DC
Licensed Maryland/DC Realtor, Metro DC Homes
Jennifer - good question. I suppose the answer can be found in the same place that you might discover why young men buy young women drinks all night without a chance of closing. It has something to do with the mentality that accompanies those that perceive the law of averages always work.
Apr 17, 2008 11:02 PM
John MacArthur
Century 21 Redwood - Washington, DC
Licensed Maryland/DC Realtor, Metro DC Homes
Jennifer - good question. I suppose the answer can be found in the same place that you might discover why young men buy young women drinks all night without a chance of closing. It has something to do with the mentality that accompanies those that perceive the law of averages always work.
Apr 17, 2008 11:02 PM
John MacArthur
Century 21 Redwood - Washington, DC
Licensed Maryland/DC Realtor, Metro DC Homes
Chris Ann - Now you make me proud.......thanks for your support.
Apr 17, 2008 11:03 PM
John MacArthur
Century 21 Redwood - Washington, DC
Licensed Maryland/DC Realtor, Metro DC Homes

Andrew - It was a nostalgic moment the other night when Barack Obama was being challenged over a relationship with one of the leaders of an old group I was in.  Ah, in my day...we knew how to protest.

Apr 17, 2008 11:05 PM
Jennifer Monroe
Indigo Home Team powered by Compass - Charlotte, NC
Real Estate REALTOR®/Broker/Designer
That's a wonderful answer! It actually answers another burning question I had :)
Apr 18, 2008 03:57 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

That would let the banks and mortgage companies know that they need to develop some guidelines. 

With 40% of the market share of listings, that would go a long way to helping clean out this mess.  Of course, he wouldn't have any control over other brokers, but it would be a start. 

 

Apr 18, 2008 11:34 AM
Brandon Michael
TRAC Auctions, BJM Investments - Catonsville, MD

You are too true.  In addition, I think many Agents are taking these short sales because they just want to be paid and make some cash.  Luckily, there is an alternative that may work for many of you.

The Auction Method of Marketing.  At least in Maryland, there is one firm that has developed a method to help Agents & Sellers alike to alleviate the burdens and headaches of going through the short sale process.

The people at TRAC completely handle the process from start to finish (or wherever you left off).  For the referral of the property, they pay a handsome commission or referral fee (however you like it to be called).

If you dont know exactly what your doing, the short sale process can be daunting.  If you have these types of properties or issues, you should refer it to someone who knows their way around and has established relationships with many of the prominent lenders already.

Check out www.tracauctions.com if you would like to see more about or just get back with me here.

Apr 23, 2008 01:07 AM
Martha Morrison
Long & Foster - Gainesville, VA

John, I agree with you. I think some sellers (and agents)  are trying to climb on the short sale bandwagon, and do not have a clue as to what is involved.

May 21, 2008 07:26 AM