One of our listings is a Short Sale.
I know, I know, it's hard to believe that Short Sales still exist - but they do.
In this case, two lienholders.
This is the second time down the pike.
We received the approval letter from the second lienholder a couple of weeks ago.
The first time around, the first lienholder took far too long and "mishandled the file" (their words not mine).
The Buyer's circumstances changed and at the point we had the approvals from both lienholders, they were unable to continue.
C'est la vie. (Tha's French - I think!)
Back on the market, knowing the magic number the lender would accept, enter another Buyer, and off we go again for round two.
Due to the first time around with the primary lienholder, we had a complete list of what they would require to process the file, so the file sent to them contained all the documents on their "standard" checklist - plus all the documents they added to that list previously over a period of weeks (unduly delaying the process the first time around).
We have a policy of following the short sale process that any lender describes (and they differ from lender to lender), interacting with their front line employees assigned to process the file.
For this lender there are three steps.
Step 1 - Someone who checks the boxes on the checklist - "Do we have this document - yes or no?"
Step 2 - Someone who checks the documents once Step 1 decides the file is complete - "Does the content of each document match what is needed - or do we need something additional?"
Step 3 - The "Liquidation Negotiator" (LN) - who reviews the file, determines whether the contract is acceptable to the investor behind the loan, ties it up with a bow, and sends it to the investor for their signature, then issue the "Approval Letter".
Steps 1 and 2 went very quickly this time around - in part due to the presence of a Single Point of Contact (SPOC) who was assigned to the file by the office of the CEO (yes, I admit it, I pinged two "C" level executives to get the appropriate attention for the file during the initial attempt).
Step 3 - Not so much. February 23rd the file was assigned to Step 3. the SPOC advised of this the following Monday, along with the contact information for the LN. The same LN as we encountered in the previous attempt.
We had been advised during the first time around that we should expect a response from the LN within 5 business days.
That time frame passed.
And then some.
Crickets.
We reached back out to the SPOC on Monday of last week.
"What's up SPOC?"
"I will email the LN today and if I don't hear from them within 24 hours I will walk over to their desk to find out what's going on and be back in touch to provide an update. At this point there are no notes in the file to indicate the LN has even looked at the file, and even though I am the SPOC, I have NO DIRECT CONTROL over the LN."
"OK - we'll take your word for now - and wait to hear from you"
Tuesday - crickets.
Wednesday - crickets - prompting the following email to SPOC from yours truly:
"Good Morning SPOC,
Just following up with you regarding the commitments you made during our phone discussion on Monday.
Did the Liquidation Negotiator respond to your email request on Monday for an update on the above captioned file?
If so - what is the update?
If not - did you followup with them yesterday in person to secure an update?
If so - what is the update?
We learned a key piece of information on our call with you on Monday, that your role as Single Point of Contact does not, unfortunately, give you any direct control over the speed at which the Liquidation Negotiator reviews the file and issues their response.
Please provide the name, email and phone number of the most appropriate person within your organization who does have such direct control."
The response...wait for it.....CRICKETS!
Hmmmm...
As reluctant as I am to put the silent SPOC and silent LN in the firing line, my responsibility to my client trumps that reluctance!
A discussion with the client.
A multipronged escalation designed and executed.
A spotlight shines on the file from multiple "C" level executives at the lender.
And shortly thereafter, the LN comes alive!
An excerpt from the email subsequently received from them:
"The offer is a good offer and I have submitted the offer to the investor for their approval."
Now that's more like it!
The moral of the story?
Document every communication with a lender regarding a short sale.
If it's a phone discussion, memorialize it in an email (or fax) to the lender to avoid conflicting memories later on.
If the lender does what they state they are going to do, when they say they are going to do it...terrific!
If they don't - knock on a few doors of "C" level executives.
Every "C" level executive I ever met in corporate america absolutely hated being asked to do the job they paid someone else to do, and they all had their own personal "spanking stick" to deal with such events.
Now...on to closing.
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