What?? How often have you sat there with your mouth hanging open listening to the bank "negotiator" say "I am sorry but we are rejecting the short sale because of _______________" (you fill in the blank). Has this happened to you:
You sent in a file that makes perfect sense for a bank to accept a short sale, i.e., the seller is unemployed, has no assets, and the purchase price is within reason, and the bank rejects the sale because the seller isn't behind by 3 months yet, or the seller is still showing good credit, or the bank wants to cut your brokerage fee out...whatever the "unbelievable reason is", and the sale falls apart. The buyer walks and finds another home. 1-2 months later the bank negotiator calls and asks if the sale can be put together still (yes, incredible as it sounds, they call back and ask). Now, what happens next is that the home ends up with a lower offer as time goes by and the bank ends up taking an offer that is tens of thousands of dollars below what you sent them originally!
Banks are literally stepping over dollars to pick up dimes!!
A bank "closes" a file because the agent said they will not take a 2% cut in the brokerage fee to 4% to be split between 2 agents. On the $300,000 sale, the bank rejected the offer for $6000. The home ultimately sold for $260,000 months later and the bank took the offer.
The bank negotiator said we needed to get a 1% fee from the buyer as a "short sale processing fee" and we had to lower our commission 1%. I said that we are countering this by asking for the price to be raised by 2% and have these 2 issues covered. The short fused negotiator said "are you telling me I need to close the file?" The buyer decided not to get involved with the sale because of this nickel/dime stuff but additionally the offer was rejected before I could tell the bank the buyer walked. The offer was rejected because the seller was current on her loan and the bank wants her to be behind by 3 months. The seller stopped borrowing money from family members. The price is now much lower then the 3 months of payments the bank wants the seller to miss.
Please tell me your stories of banks making unbelievably bad decisons that cost them more in the end
I am starting a grass roots movement to stop banks from COSTING US TAX PAYERS MORE MONEY by making stupid decisions on short sales. If you have a story to share, please let me me know. Reply here or go to http://www.facebook.com/keith.maahs share your story and become my my friend. I intend to pile up the responses and get these to my political representatives. Maybe we can stop the banks from wasting the bailout money and keep them from asking for even more to waste. I bet we could have cut the losses at the banks by 25% or more if they would just listen to reason.
Keith Maahs, CSS, CIA, CNS
Keith Maahs is a real estate sales executive with Coldwell Banker Burnet in Coon Rapids, MN. He is a Certified Short Sale Specialist, a Certified Internet Agent, a Certified Negotiation Specialist, and certified in many other areas. Keith Maahs is a renowned speaker and lecturer on many topics of interets to real estate agents. His 10 - week sales training program, The Elite Sales Force Sales Academy, has produced countless top producers and changes agents careers. Currently Keith is highly involved with short sales and speaking on the 7 Habits of Highly Effective Agents.
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