Short Sales and The Current Administration

By
Real Estate Agent with Your Castle Real Estate, Inc!

With the sweeping platform of liberal spend and tax programs that 10 generations cannot pay back, we are now faced with a constant stream of bank regulations that affect lenders, and will also affect us.

Fannie Mae is now condusting their own appraisals behind those the lender or servicer orders. Fannie takes its own seet time to get this done, too. This can stall an otherwise smooth short sale process, and cause a great deal o f anxiety for a buyer, which is where constant communication through the process with the buyer's agent is important.

States are changing the rules on who can work with Sellers who are being foreclosed on. the rules of engagement are important to know and can keep you out of trouble with your state's real estate commission.

Banks are changing their rules on how they approve a short sale. Some of them are changing the rules weekly. One trend tht I find very disturbing is that many banks have outsourced their loss mitigation departments to Pakistan and India, where a bunch of script readers are not very helpful. some have very well trained representatives who are trained to speak in US dialects. I have trapped many by using geographic landmarks which are not located where they claim to be. This is producing some delays in processing the approval, and causes many unnecessary delays.

Something else i am using to work more as a partner with a lender is a trend analysis of the subject area. I start with the zip code, and work back to the street for the subject to provide a much more detailed picture of what the subject is worth now, and will be worth later. I submit this with my package as a front-end BPO, and sometimes the lenders will use this compared to their own to approve the deal. I have MLS data that dates back many years,a nd this provides me the ability to build a trend chart of a property, including the number of times it has been sold and for what prices it has sld or listed at historically. This is a good way to utilize my education outsde of real estate, and justify that MBA.

I find the CMA we have all been trained to use is an inadequate tool for any real estate transaction ebcuase of its statistical inaccuracy. By getting a better sample size and using simple spradhseet formulas I can produce a more statistically accurate model for market analysis.

As many have said negotiation is always a key component in the deal. You have to know who you are negotiating with, though. many negotiate with the front line personnel, but I wait more patiently and get to the actual negotiatorAmny have worked with me on more than one transaction and know I will not abuse their goodwill with a price model that is outlandish. That builds a better working relationship that allows me better access to the lender.

Finally, I would encourage everyone to realize that the market we are in is the market we are in. It doesn't matter that there are a lot os foreclosures, or many listings run as short sales. What matters is our abiliity to get a deal to the closing table. We cannot affect the market we are in, until we actively participate in it, and then work to change the composition of the sales in it. Sticing our heads in the sand will not produce sales. We have to determine that we are here to hel pa public understand where we are, and then set ourseleves to the purpose of making it what we want it to be.

 

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