Short Sales- Palm Beach County- Facts vs Fiction- Myth #1 Busted!

My take on training is that it is always good to hear information and strategies about what you love doing. Maybe you take a piece of information and tweak it to fit your strategy. I also believe it is good to surround yourself with others who are in the trenches to compare notes. Lenders are getting smarter and the days of easily getting approval letters that could be applied to any buyer are almost gone. They are also changing their policies based on the new changes in the banking industry. That's why I like websites like Active Rain. For example, 2 of my short sales last week got rejected the very next day by BofA as a 2nd lien holder because they believed the purchase offer price was too low even though they didn't do a BPO and their estimated value was still short of the payoff of the first. I posted this on Active Rain and one experienced short sale Realtor told me how to over come that issue.

Because this post targeted CDPE, I would be interested in knowing what the core strategies are for the CDPE course. Such as how to list the property, what offer or offers to present to the lender, handling the BPO, etc. to pass judgement or express opinion.

AMIRI,

The CDPE is a full course that goes over all the aspects of a Distressed Property. It starts with the history of how we got here and show comparisons of when this has happened before. Before we go over Short Sale we discuss all the other options the homeowner may have that could keep them in their home, with a Short Sale being almost the last resort. We also go over all the pros and cons of each solution as to be able to answer most questions within our means. The remainder of the course focuses on how to qualify the homeowners and see if they are a good candidate for a short sale and how to prepare for an approval starting from the minute you sit at the table and sign the listing agreement. It covers pricing strategies, BPO, lender objections and how to avoid them, what lenders are looking for, how to put together the most comprehensive package, systems to keep in touch with the lenders, systems to keep all the paperwork, they give you all the forms 9plus any updated forms after you earn the designation. In short (no pun intended), it is a complete overview of the entire process from the history to beyond the closing table.

If that wasn't enough, every CDPE can participate in monthly webinars and conference calls as we go over all the new data and strategies as the lenders adjust theirs. We go over marketing ideas, new ways to streamline the process and soon there will be a National website so we can contact each for support and referrals.

As a matter of clearance, I don't believe Nestor and Katerina were focused specifically on the CDPE but organizations like it in the Short Sale education forum.

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I love you too, Wendy.

Hi Sidney, can you give me an example of:

"It covers pricing strategies",  "BPO" and "lender objections and how to avoid them"

Is the pricing strategy to list at the high end of comps and a general reduction based on a timeframe?

What do they suggest for the BPO?

Do you have an example of a common lender objection and how to overcome it?

The other points, such as looking at the big picture and offerring other solutions is a must. Real estate isn't about buying and selling homes, it is about providing a solution to a situation. Any training that mentions this sounds good so far!

Sidney - I DO think you are great!   Not referring to you :)

Kat, Wendy, Amiri and Sidney.

I would like to say, I am proud to be among true professionals who really care about helping homeowners and are willing to go the extra mile to do what ever it takes to save someone from foreclosure.  2 1/2 years ago I transitioned into Real Estate from a law enforcement career.  I was blessed to work for a broker who cared as much as all of you do about doing whats best for the client.  I truly believe if professionals band together and share their collective knowledge we all will get through this mess.

What I've experienced here in California is Realtors are killing short sale deals by submitting unrealistic and multi offers.  I list at the high end of the comps and reduce the price every 10 days till we get an offer.  I  also require my clients to pay for an appraisal, home inspection, termite inspection and termite repairs.  The appraisal is submitted with my short sale proposal and is provided along with a CMA to the individual completing the BPO, I'm at every BPO unless the lender does a drive by.

I know this sounds expensive but my clients are receptive to my education and understand the pitfalls associated with closing these types of transactions.    

You all sound like you should be instructors for CDPE.

SATAR,

I'll call you to answer your questions. I don't want to take over Nestor and Katerina's blog with this matter. I hope you understand.

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There's an agent in California who markets herself as a "short sale expert".  Know what she does?  Sends a threatening letter to the mortgage company saying she will go to the media if they don't approve her short sale.  Same letter.  Over and over.  Now she's marketing her "secret" to other agents.  Katerina, you are so right....there a so many "experts" who are completely clueless doing short sales.

Tina in Virginia

Sidney - no problem and thanks.

Tina - That's crazy. I'm sure the people making $8/hr in South Carolina processing short sale request have a ball with those letters. I did save a few short sales, that were being rejected because of some type of company or investor policy was being violated, by writing a letter to the CEO or department heads. However I was being non-threatening and just explained the situation (and kissed major a**).

Gary - If I ever have anyone from your neck of the woods contact me, I'll send them your way. Also, did you ever consider doing a BPO yourself and giving it to the bank's BPO with the MLS print outs of the comps you used? It saves on having your clients to pay for an appraisal. Also, you might just have your buyers pay for the other costs. If anything, my clients benefit from a short sale, which motivates them to work with me.

Katerina - Nice topic. It started some great conversation.

We would love to put some offers in on a few shortsale homes in west palm, we have a few were looking at there now. great article 

Thanks for the great information!  I can definitely see the benefit of timing a late payment; if that was the lender requires.  If they only want a 30-day late; there is a key to have a schedule of when you think an offer will come in!

JAMES,

Be careful to never tell a client to miss a payment, there's a great liability there.

Hi James - I agree with Sidney. Some lenders, like Wellsfargo, will let you do a short sale while current. It's always best to contact your client's lender and see what can be done to best represent them.

Good Luck

I'm a little cynical about designations but the agents who are supportive of the CDPE have credibility. I will check the designation out.

That said, for me it is all about the results and not the badge.

KATERINA,

I understand your standing on this, but I would also like to point out that you specifically made a statement about Certified Distressed Property education and your belief on that issue. In order to comply with your own wishes of not confusing your readers I would suggest you amend your use of that terminology to something less specific to a national course currently being taught with great success, which is the Certified Distressed Property Expert designation. Without proper debate, as we have, the public and other agents can confuse all education to that specific course, which is unfair.

I would be more than happy to delete my posts, if you argree to not use the "Certified Distressed Property" as an example to your beliefs on the subject.

Sidney, it doesn't matter what you say. The follwoing sums it up "Also, please refrain from adding links within your comments as this is a post for me and Nestor to get sellers to call us to list their short sales."

When one is being disingenuous, then debate and fact on a topic is useless.

I learn something new every day here.  I am wondering what the law in Maryland is.