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Short sale motivation

By Jackie Nary

Real Estate Agent with Keller Williams Elite Realty

October 09, 2009 05:53 AM

I had a meeting the other day with my Congressman's representative regarding the delays we are encountering with short sales. I certainly didn't feel as though I accomplished anything as my Congressman is a Republican and he said anything they might propose would not go anywhere because of that. I am a short sale listing Queen and currently have 16 offers in at the banks in all stages of approval. One as long as 14 months.

The 14 month offer is actually buyer #5 because 1-4 got tired of waiting and moved on to something else. I do not understand the reason why these banks can't decide if they like the offer or not. The offer isn't getting any better as they sit and decide. The one that I have been waiting on for 14 months, was submitted to Fannie Mae the end of August and they are still "waiting" for Fannie to decide if it is good or not. The bank gave me a net amount, commission structure etc on 8/20 and we resumitted a new HUD to the negotiator who in turn sent it to Fannie. Fannie must be sitting in her rocker hoping this offer somehow gets better. The reality is, it is now an offer priced offer. The sad situation is buyer # 5 may walk because we can't give them any information on the progress.

The entire time these lenders are "working" on the short sale, they are continuing to get "paid" to service the loan for the investor. They really do not have a motivation to sell this home and lose their income until it gets really close to foreclosure.

Ok, got that off my chest, now I can have a good weekend. Happy selling...

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Satar Naghshineh

Satar - Amiri Property and Financial Services Corp. - Irvine, CA

There is no motivation for approving short sales. The banks already had it easy by keeping only 10% of their deposits while being able to lend out the 90%. Then, they lift of non-performing assets requirements. Then they bail the banks and investors out. Finally making short sales more effective means spending money and resources for a department that generates no revenue. So between all this and the milking of the service contracts, what motivation should they have to do a short sale?

Great blog.

Oct 10, 2009 06:25 AM

Knolly Williams

Success With Listings - Austin, TX

Thanks for the post Jackie! As you know, Freddie Mac recently did a study showing that banks loose approx 40% on a foreclosure vs 19% loss on a short sale, so the incentive is certainly there. By focusing almost exclusively on short sales, I am having my best months ever, with over 70 listings and we are getting approvals right and left.

Since I've been doing short sales since 2004 and have closed over 450 (96 last year) I can tell you that the process is definitely getting easier NOT harder - so keep pressing on! I have a 95% approval rate - but of course I screen my prospects through over 15 different criteria, so I only work with the ones I know will be approved.

It's true, banks still don't quite get it - but they are more receptive than ever before.

Oct 10, 2009 10:10 AM

Knolly, you have to admit that the only reason you find them easier today is because of the relationships you have created. For example, a Countrywide short sale for you and I might be easy but for a new short sale agent, the most difficult transaction especially if it comes out of the Arizona office.

Oct 10, 2009 10:58 AM

You know Satar you are SO right! Thanks for pointing that out. I think I often take for granted the many years of hard work that has helped hone my system. As you said, the reasons we find short sales much easier NOW then they were years ago is that we have refined a proven system, AND have RELATIONSHIPS with key loss mitigators at all the major lenders.

PLUS after many years of doing this, we now know much more than most loss mitigators, so it's impossible for them to decline one of our files (just because they want to get it off their desk!). Thanks again!

Oct 10, 2009 03:34 PM

"we now know much more than most loss mitigators, so it's impossible for them to decline one of our files (just because they want to get it off their desk!)"

Exactly!

By the way. I hope to see you on Activerain more often. We could use someone who knows what they are doing regarding short sales on here!

Oct 10, 2009 03:41 PM

Mary Kent

Five Star Real Estate - Grand Rapids, MI

Grand Rapids to the Lake Shore

The frustration is never ending for short sales-Best to you~

Oct 14, 2009 08:03 AM

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