WHAT BANK IS YOUR LOAN WITH MR. & MRS. SHORT SALE SELLER?

By
Real Estate Agent with Bradenton-Homes, Experts - Keller Williams Realty

 

BANK

I swore that I would not write another blog post about what a pain in the #@**$ it is handling short sale transactions!  Most posts, essentially, all address pretty much the same issues:

PROBLEMS

  • No continuity or practicality in the process itself
  • No discernible organization or efficiency in the way banks handle the files
  • No "live" people to talk with when you need one!
  • Disappearing paperwork... that disappears AFTER a bank representative (who disappears themselves soon after that!) tells you that "Yes!  We received your fax!"
  • Banks transferring their files to other banks to handle due to the overwhelming volume of short sale transactions, at which point, the REALTOR must resend ALL of the paperwork to the new bank taking over the file.
  • Banks taking files from the negotiator who has been involved from the beginning and then FORGETTING to reassign the file to a new negotiator.
  • Banks not "staffing up" to handle the supply of short sale files submitted to them... kinda like the holiday "wrappers" in the mall at Christmas!
  • No efficient way to send information to the banks.... faxes get lost... security won't allow emailed files or links to files... and it's not possible to send information to a specific person, only to a department, so there's no accountability for receipt!
  • Commissions are controlled and SLASHED by the party who causes us to work harder and for many hours more than SHOULD be necessary!

 

 

OK... Well... does that cover a lot of the problems anyway?

And to raise even more frustration and concern... I just read an article this week that said that, due to the "upturn" in the economy, banks will not be as motivated to approve short sales and won't allow the sizable shortfalls that we have been witnessing up to this point.  Sounds like they will be even MORE difficult to deal with, doesn't it?!

Well, I say.... we should STOP complaining and START doing something about this RIDICULOUS situation thatSHORT SALE doesn't seem to be getting much better! 

It's been suggested and ranted about in the REALTOR circles that I travel in that we boycott short sales until the banks improve their processes and provide the trained staff in numbers that make sense given the volume of transactions they are responsible for processing... but those RANTS are just that... RANTS... and given the fact that such a large a percentage of "solds" out there are short sales... not a very practical or applicable solution to the problem!

Now we all know that certain banks are better to deal with than others... and some banks are downright IMPOSSIBLE to deal with... without losing your temper, mind, and composure! 

Those banks should go on the "IMPOSSIBLE LIST"... A LIST OF BANKS THAT WE WILL NO LONGER NEGOTIATE SHORT SALES FOR!

And to determine which short sales make sense from a business standpoint and which ones don't... we could start by adding another "Short Sale Seller Pre-Qualification" question to our seller interviews and questionnaires...  that question being.... MR. AND MRS. SHORT SALE SELLER... WHAT BANK HOLDS YOUR MORTGAGE(S)?

The banks on the "IMPOSSIBLE LIST" should be a "deal breakers" when taking short sale listings!  DON'T DO IT!! JUST SAY "NO!"

Now I know, as REALTORS, it's REALLY difficult saying "NO" to a listing.  We're kind of like actors who are afraid that we will never get another part!  It's NOT TRUE... there will be more listings... a lot more listings!  Listings that don't take every last ounce of your composure and energy to drag "kicking and screaming" to the closing table!

LISTNow for THE LIST... I would really like to SUGGEST candidates for the list here... but I will settle for saying "We all know who should be on THE LIST!"  Don't we?!

 

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Rainmaker
508,095
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Okay, how do we compile a list and what are the parameters to get on or off of it.  I had a marathon transaction with Bank of America, 18 months.  We stuck through it and closed it.  Yes my investment barely paid off, but had I abandoned it once in hip deep, it would have been 0.  I have another one with them now and it seems to be going along slowly, but on a predictable schedule. 

So, who would you exclude and why?

Thanks,

Dan

Oct 16, 2009 08:31 AM #1
Rainmaker
124,629
Bradenton, Sarasota, Real Estate ~ The Serena Group
Bradenton-Homes, Experts - Keller Williams Realty - Bradenton, FL
Selling Real Life Dreams in Paradise!

Hi Dan,

I think the trick is to say no to the listing before you even get involved... we have a couple of banks that our team has worked with time and again and the experience is always the same.  That's how this post came about... we started questioning why we are taking listings for short sales that have mortgages with the banks who do not seem particularly interested or motivated to get these short sale transactions closed.

Oct 16, 2009 08:43 AM #2
Rainmaker
171,962
Vicki Pedersen
Pedersen Real Estate - Riverside, CA
Providing Exceptional Real Estate Service

I agree with all your points about how incredibly difficult short sales are.  But my thought when reading your suggestion that we "boycott short sales until the banks improve their processes and provide the trained staff" was that I don't believe that the banks really care whether we real estate agents do short sales or not - and they don't care whether they do short sales or not.  Do banks prefer to have short sales work out rather than let the houses go to foreclosure (even though that makes more sense)?  I  don't think so.  What do others think? 

Oct 16, 2009 04:14 PM #3
Rainmaker
124,629
Bradenton, Sarasota, Real Estate ~ The Serena Group
Bradenton-Homes, Experts - Keller Williams Realty - Bradenton, FL
Selling Real Life Dreams in Paradise!

Hi Vicki!

I'm not suggesting a boycott of short sales for all banks... only the banks that are notoriously unprofessional and inefficient at handling their end of the short sale process.  When you handle a large volume of short sales... it becomes increasingly clear that some banks are working on improving their systems and some are not.  The ones that don't seem to care, just take too much of our resources, time, and energy to work with... doesn't make good business sense, does it?

Do the banks care whether real estate agents do short sales or not?  Sometimes it doesn't seem like they do care... and sometimes it seems like foreclosure is their preference.  What would happen if real estate agents just stopped doing short sales for a bank and all their toxic assets just sat waiting for the foreclosure process to kick in?  Would be interesting to find out, wouldn't it!

 

Oct 16, 2009 06:44 PM #4
Rainer
82,366
Rick Frey
Exit IH 10 Realty - San Antonio, TX
Broker owner

Get piece. So who would you put on the impossible bank list?

Rick Frey

Oct 16, 2009 10:50 PM #5
Ambassador
1,230,006
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

I do short sales all the time and have the same love/hate relationship with them that you seem to have. But, walking in another man's shoes, I have to wonder . . . they are slow because they do not have the staffing, the staff is untrained, the laws keep changing, the phone systems are overwhelemd, etc. While I am irritated and frustrated at times, I guess, to a great degree, I can understand what is going on at the banks and try to work iwth it.

Oct 17, 2009 02:11 AM #6
Rainmaker
124,629
Bradenton, Sarasota, Real Estate ~ The Serena Group
Bradenton-Homes, Experts - Keller Williams Realty - Bradenton, FL
Selling Real Life Dreams in Paradise!

Hi Rick!

 

The bank that we seem to be having the most problems with on a regular basis is BOA.

 

Hi Melissa!

 

Agreed... walking in another's shoes is a good practice to adopt... however, when you have some banks that seem to handle these difficult and trying transactions with some professionalism and efficiency and other banks ... just hearing their name when your seller tells you who their loan(s) is with makes you cringe... those are the banks that it might make better business sense to avoid dealing with.

Oct 17, 2009 04:41 AM #7
Rainmaker
508,095
Dan Tabit
Keller Williams Bellevue - Sammamish, WA
BOA? I have a loan mod & Short Sale currently in process with them. They don't seem to communicate well at all. As earlier mentioned I did eventually close the marathon, but my hourly rate was about $2.00 by the time it was over. Any recommendations to move things any faster or just prepare our clients for the worst? Dan
Oct 17, 2009 05:24 PM #8
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Rainmaker
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