Does The Lender Want This Property To Go To Foreclosure?

Services for Real Estate Pros with Real Living Realty Services

"Unbelievable! Does the lender want this property to go to foreclosure?" Judy, the listing agent proclaimed as she placed her phone on it's cradle. She has been calling the lender twice a week for the past three months regarding the short sale and the lender's customer representatives continue to tell her "The package has been received but no decision has been made." Sound familiar? Judy is now convinced that the lender just wants the property to go to foreclosure sale. What is most frustrating to the agent is the purchase offer came in above the market value and it's not getting the the time of day from the lender. What is really going on here?


What happened?
The truth about this case is the lender really doesn't have an opinion about whether the case should go to foreclosure or short sale. The lender doesn't have an opinion one way or another because no one at the lender's short sale office has reviewed the package to see if the offer is good. Unfortunately, for all parties, ten minutes after Judy's phone call to the lender, she received a call from the selling agent who told her the buyer just walked. Too much time transpired and the buyer got cold feet and found a different home that was listed with a different agent.

The listing agent's time was ineffective with her lender follow up.
Wait one minute. Judy is on top of her game. She did exactly what she thought was the best course of action with short sales. She was diligent with her follow ups. Judy verified and re-verified with the lender that all of the documents were received. She contacted the lender at least twice a week for three months. Did the lender lie to Judy? Not really. Judy had been talking to a customer service representative each time she called. The customer service representative probably checked the fax server or perhaps their log which is kept on each borrower each time Judy called. In doing this, the representative saw that the documents had been received. Judy was ineffective in her follow up because she failed to motivate the lender to move the short sale forward. To sum it up, Judy was not firm enough with the lender. Perhaps she was too gullible in believing the lender's canned rhetoric.

This case proves once again that "Time is Money!"
Judy lost the short sale. Judy is crushed by this news. She keeps replaying in her mind everything she did and she wonders what she could have done that could have possibly resulted in a closed deal. To make matters worse, the listed property will be sold at sheriff's sale.

This lost time could have been used elsewhere
How much extra time did Judy spend on this short sale that never closed? How much additional commissions could Judy have made if she would have spent that wasted time on other productive tasks in marketing and sales? Judy thinks she has learned her lesson well. Judy has decided not to ever list another short sale again. She feels short sales are a big waste of time. Short sales may indeed be a big waste of time if not handled properly. There may be a better answer for Judy.

What could Judy have done to avoid this disaster?
There is a Tsunami of mortgage defaults on its way and Judy will be missing out on many listings if she stays out of the short sale game. However, if Judy continues on the path she is on with short sales, few of her listings will ever close.

There are two options for realtors who want to be in the short sale arena:

 1. A realtor can become a short sale negotiator and negotiate all of their short sale listings
 2. Let the professionals negotiate short sales for them.

If a realtor decides to negotiate their own short sales, they should ask themselves if they are a "realtor" or a "short sale negotiator." There are some realtors who negotiate their short sales quite effectively but despite their talents, they have a price to pay. The time they spend negotiating short sales is time taken away from their realtor duties. Why not let a professional negotiate the short sale listings? Judy would love to hand the short sale off to a professional short sale negotiator but times are tough right now and she heard that short sale negotiators cut into your commissions. There is one professional short sale negotiator service that does not cut into the realtor's commissions. They don't charge the buyer nor the seller. They get paid when the transaction closes and they are paid by the lender. The short sale service is provided by Timothy J Cotter, PA and they negotiate short sales nationwide.

Close more short sales.
If you are listing agent or a broker who wants to speed up the short sale process, the best way to do this is to have the short sale experts negotiate your short sale listings. Bill Burress at Timothy J Cotter, PA can help you get your short sale listings to the closing table. Timothy J Cotter, PA offers a short sale negotiating process that is no cost to realtors and realtors keep their commissions.

Timothy J Cotter, PA
599 9th St, Suite 313
Naples, FL 34102
Toll Free: 877-730-3022

Your use of this newsletter does not create an attorney-client relationship between you and Tim Cotter, PA or any of its attorneys. It does not represent you in connection with any matter until such time you and Tim J Cotter, PA agree in writing that it will act as your counsel.

The materials on this site are presented for informational purposes only and do not constitute legal advice. There are no guarantees for short sale approvals, closings and foreclosure postponement or cancellations.

Comments (3)

Ray Wright
Keller Williams Realty - Riverside, CA
SoCal Realtor - A.L.C. - Company Trainer & Coach

Good info...I may look into that!  Thanks

Feb 15, 2010 02:53 PM
Jeffrey Smith
Author of 'Realtors Guide To Short Sale Success - Eustis, FL
Short Sale Education

Me too. I make al;l my calls on Tuesdays and fridays and hate it.

Feb 16, 2010 01:19 AM
Keji Ogunleye
Fairfax Realty, Inc - Greenbelt, MD
GRI, SFR, KejiYour Realtor

Some lenders are decided not to pay negotiators anymore- How do you deal with this. I have a short sale with IndyMac and they informed me they don't pay third party negotiator.

Feb 16, 2010 06:07 AM