Short Sale Listing Realtors and Buyer's Loan Officers Should Learn What Each Other Do

Real Estate Agent with Keller Williams Realty Louisville East (502) 664-7827

"Why is it taking so long?" asks the buyer's loan officer of the short sale Realtor.

"Why is it taking so long?" asks the short sale Realtor of the buyer's loan officer.

They both ask the same question. How ironic.

In the spirit of cooperation, I will pose a request at the end of this post.

The loan officer officer has a buyer who is like a finely tuned athlete ready for a triathelon, but that tuning may not last

  • The credit is where it needs to be, for now.
  • The job stability passes the test, for now.
  • Debt ratios are OK, for now.
  • Interest rates work for everyone, for now.
  • The buyer may have paid for a rate lock, which may expire.
  • The conditions may never be so good for this buyer. In this fragile economy, the time to get this done is NOW.

So c'mon, why can't that listing agent get the foreclosing lender to approve the short sale?

On the other side of the equation is the listing agent

  • Once the foreclosing lender approves the short sale, strict timelines kick in.
  • The foreclosing lender only gives a limited time to close, usually 30 days.
  • Last minute prorations or liens may reduce the net amount the lender requires to receive.
  • If the closing doesn't occur on time the foreclosing lender may not extend the approval.
  • If the closing doesn't occur on time the house may sell at the imminent foreclosure auction where everyone loses.
  • Short sales are always fragile, the time to get this done is NOW.

So c'mon, why can't the loan officer hit the closing deadline?

I Am On a Dual Quest:

(1) To understand the constraints imposed on the loan officer

(2) To explain to loan officers the constraints imposed on the short sale listing agent

So Here Are My Questions to Loan Officers and to Short Sale Listing Agents:

  1. What would you, the loan officer, like to ask the Realtor about the short sale process and timelines?
  2. What would you, the loan officer, like to tell the short sale agent about your lending and processing constraints?
  3. What would you, the Realtor, like to ask the loan officer about their constraints and timelines?
  4. What would you, the Realtor, like to tell the loan officer about the constraints imposed on you in the short sale process?

Please fill up the comment section with everything you wanted to know about the other side. Let's learn from each other. Dissenting opinions and vigorous debate is welcome!



Posted by



Dave Halpern, Realtor

The Dave Halpern Real Estate Group

Keller Williams Realty Louisville East


(502) 664-7827



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Sharon Harris
Keller Williams Keystone Realty - Hanover, PA

Going to check back in here to see if there are some good questions asked answered.

Jun 20, 2011 01:27 AM #1
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Dave,  Depending on the situation ... I'd ask if there is anything I can do to help ... to be part of the solution. When working with the negotiator on obtaining approvals for short sales ... I always thank them and talk to them like they are human beings just as over-loaded, over-worked and stressed out as everyone in the process.  I will also ask who can I tell about the great job you are doing ... and how kind and helpful you are?  I sent their manager a note and let the manager know what a great job the person is doing.  People are inspired to help more when they are acknowledged for their efforts and contribution. 

Jun 25, 2011 12:07 PM #2
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Sharon - I may have posted my question too early in the morning. Or, possibly, Realtor an loan officer relations are so good that my question was irrelevant.

Kathleen - Great strategy. Being the only one in the other person's day who is pleasant to them goes a long way.

Jun 25, 2011 12:14 PM #3
Stephen Howell
Coldwell Banker Residential Brokerage - Annapolis, MD
Annapolis MD Homes For Sale 443-994-8043

The discussion needs to include the banks themselves.  The issues are not with the buyer's lenders, nor are the issues with the short sale real estate agents.  The real issues are with the lenders who are processing the short sales.  I've written about this elsewhereexpressing my opinion that banks should be able to pre-approve short sale requests in 15 minutes and give final approval in 30 days or less.  Their loan officers can make be empowered pre-approve the short sales and their underwritters can give final approval.  Both those people know what to do already, why not put them to work processing short sales!!!

Jun 26, 2011 02:17 AM #4
Not a real person
San Diego, CA

Just stopped by to say that I

Happy Fourth of July!

Jul 04, 2011 08:02 AM #5
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