Real Estate Agents Must Remain Positive. After all, the new Short Sale regs are better than a sharp stick in the eye!!

Sounds like you

re advising cautious optimism with a lot of education, both classes & hands-on ... to do it right!

Hi Lenn, great post.  With regard to the timelines you are so right.  We have seen so many programs on short sales and it seems only the banks can truly control the timeline.

I hate to be a cynic, but the banks will continue to do as they please.  We will continue to get training and the banks will continue to hire people that don't have a clue.

Realtors must get used to dealing with Short Sales, they will be part of our vernacular for many years to come.  I agree with you that training is crucial, and knowing buzz-words like "Escalation" and when to use them can be the difference between a declined Short Sale offer and an approval.

Lenn, the short sale negotiating process is not for the agent who is faint of heart. With all the new regulations coming out it is absoulutely important that agents stay abreast and always be mindful to act in their client's best interest, The short sale bank is a totally different story.

Laura-I agree.

Feel good that the banks still pay commission on Shorts. If you hate selling shorts then get more equity listings. Many of my buyers on apartment leases are willing to wait for shorts, what does that say to you?

While I agree that agents should learn all they can about dealing with short sales, I have to agree with Laura (#12) when she says the banks will continue to hire people who don't have a clue.

Florida has a ton of short sales which unfortunately we show. The chances for the short sale are only as good as the listing agent...so I ask a lot of preliminary questions.  All the shorts sales we sold last year actually closed at around the 4 month mark...except for one. 

That one that did not close was a listing agent who hired a law firm to negotiate the short sale with an out of country selller. After 5+ months of getting answers that did not fit...and I insisted on the seeing the power of attorney letter.

I was sent a forged POA document and with forged signatures witnesses. 

Eve in Orlando

...and let me add...in each short sale, the buyer came in at list price and in each case the bank asked for more money...once even $90k more than their own appraisal.

Eve in Orlando

I'm so sick of the whole short sale discussion. Nothings changed (they say it has) for the 3 years here on AR that I can see.

Lenn, as always great advice. I do many, many short sales and am curious to see if much changes with the new regs. One can hope! In the past, I've closed one in as fast as 30 days - but have one now that is just closing after almost 8 months (it involved a bankruptcy too). Sometimes I ask myself why I do so many of them! Since so many agents really don't want to invest the time for often low returns, I kind of feel like those of us who have invested in CE and have tons of experience with them must continue to serve the people who need us!

Lenn: How timely and essential this post is! As you know, this particular market has not been hit as hard as other parts of the country but as time goes by and as the housing market continues it's malaise, we are seeing more and more properties hit the skids!  In terms of declining values, the natural by-product is a real need to sell, sometimes as a short sale--and we are starting to see more and more of those at the higher price-points. Prices have declined so much here that we expect a re-emergence of the buyer who is looking specifically for short sales. This information you have shared is critical, especially for those like me who have not seen the need in the past to know alot about short sales...Now is the time to get "with it" as you suggest in this post... Thanks for the valuable information!

The success of a short sale is the relationship of the listing agent with the bank. Check out that listing agent before you enter into a contract.

Margaret

The short sale is here to stay but I have become very particular about any listings I will take as well as any buyers I will work with to try and procur one.  If they cannot understand the process after my explaining it to them and have unrealistic expectations about any area of it, I leave the driving to someone else.  Great article!

A great post.  I am not sure how some of these large brokers can monitor the work by the agents in their office.  I cannot watch my 6 kids, how could I supervise 40+ agents.

Are the new "regs" even in effect yet? And the banks will have to be watched closely to see if they follow the new rules and speed things up. I currently remain skeptical.

Lenn

I agree that education is a big piece of the puzzle with short sales.  In order to navigate through the process the buyer's agent must be familiar with the "in's and out's" of short sales. 

Lenn, you just brought back a flood of memories. My first exposure to real estate was my ex father in law, who passed away last Thanksgiving at age 90. I still cannot believe it when something he regularly said comes out of my mouth. "Better than a poke in the eye with a sharp stick" was one of them.  Another was, "don't say bah bah when you can say bah".  That was back in the day when the Broker paid the entire (substantial) long distance phone bill...... Anyway, thanks for the flashback - and the truism!