Are You A Successful Short Sale Agent?????

Over the last few years, short sales have taken over our lives and our careers.  As a full time agent, the short sale is the most common listing that I acquire.  For those of us who still are not venturing into the short sale world, the loss of income could potentially run 60% or more since that is the makeup of the market—60%+ short sale listings, 35% REO and 5% resales (if you’re lucky to find one or be able to sell one at the price point to satisfy the seller).

In the beginning of the short sale crisis, agents were tutored on the short sales in a very different manner.  In essence, if you were to get a short sale, you were able sit down and describe how the short sale is so much better for you, that the rules of deficiency may not apply fully and that the client may come out of this almost unscathed.

Now fast forward to today.  Our roles have changed considerably with each new law and each new lender requirements.  The landscape has been muddied and we cannot confidently tell our seller that they will be fine at the end.  The straightforward guidelines of years past are no longer available to us.  We  are now bound to take the enthusiasm down a notch or two because we know that short sales are  not always going to meet up with the sellers optimal goals and we cannot place ourselves in a position of positive achievement of those goals if the terms don’t match with the seller’s ideal situation. 

I, for one, am always cognizant of the potential liabilities for my sellers.  Full disclosure requires me to ensure that the seller is aware of possible consequences and advise at the start to obtain legal counsel (VERY VERY important).  I had to readjust my idea of a successful short sale to one from closing a short sale to getting the best circumstance for my seller to consider.  Unfortunately, the circumstance may not be what the seller perceives as their Utopia.  In most cases, the seller wants full release of deficiency, complete forgiveness and ultimately to not have to pay a single penny out of their pocket to achieve this goal. 

I can’t say I blame them at all.  In fact, if I were in their shoes, I’d be looking at the same thing.  But bear in mind that no matter how good you are as a negotiator/agent, each loan is different, each investor is different, each outcome is relative to many layers of particulars that are secular to the loan itself. 

Given this fact, our jobs have become more and more difficult.  I’m always pushing and striving to do my best.  Whether it’s putting a package together that is complete, to pushing for action with the lenders to in some cases speaking to banks late at night (I have one negotiator who works till midnight) or in the morning (sometimes as early as 6 am) I know that my actions produce results.

However, at the end of the day, the results may not sit well with my sellers.  They may not like the terms or conditions.  The buyer’s may not want to move forward during inspection period (for whatever reason) and I am left with not closing on the listing.  BUT I know that I did my best and in terms of what I was able to achieve to move the file forward; I know I had a successful short sale. 

Word to the new; if you venture into a short sale listing please take note that your clients need the best representation on all ends.  Simply listing and then making a call here or there is not enough.  You need to give it a great fight and then, in the end, you’ll find yourself not only possibly closing but also learning so much that your future clients will benefit from a well versed short sale agent.