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:
- 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 that 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!
Now 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?!