Short Sales - what is your broker doing to help you out?

ANDREA,

You should invest in an eFax. It will save you tons of time with the chores of faxing. It is a two minute step that is just like sending an email directly from your laptop. It will even notify you if the fax went through or not.

Let me ask everyone a question that seems to escape the conversations. But first let me set it up. Would everyone agree that the communication with the lender is very important? I hope so. And can we agree that the entire deal that we've worked so hard to put together can fall apart during this crucial step? OK. Then why do most people think that the person we hand the file to will have MORE time than we do to make contact with the lenders. If we use the example above, and the "processor" takes three hours to contact the lender then what happens to all the other files on their desk. Why does someone else have the time to sit on the phone and still get everything done, if we don't?

I've had the experience of doing my own Short Sales and having another "short sale processing" company do it, but as wonderful as they were...it always took them longer to get the file done. Those companies are actually busier than we are. I truly believe that everyone needs to get the proper systems to make everything run smoothly and not waste time doing repetative tasks but still have time to take care of the tasks of their business.

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Short sales are not overtaking our market here. However, we do have them. There is a company here now that does nothing but negotiates short sales for agents. Their fee is SEPERATE from our commission. Do you have such a company?

BethAnn,

Those types of companies are popping up everyday. They are usually a lawyers office or a title company with a different name. As a matter of fact, one of the biggest such company in our area is acutally a real estate Broker that has hired a few "processors" to man the phones. Many of those companies are wonderful but most will do little to enhance the probability of an approval.

I think their success is not based on results but the fear & frustration of most agents unwilling to learn the proper ways to prepare for a Short Sale.

As a broker myself, I am happy to report that we do have someone like this on our team.  He also teaches MCE classes on short sale topics.

Andrea, I think that would be a great selling point to attract agents. As long as you have the right systems and people in place there is no reason it couldn't work well. You do not have to have a real estate license to negotiate a short sale. Short sales are far more time consuming than they are difficult.

Agree with Lenn, would not want our clients turned over to an office clerk.  And remember if an office does do something like this, the money has to come from somewhere to hire the person. with short-sales already notorious for getting less commission, do agents really want still less commission by having their commission dinged by a broker who is hiring someone? Our 2 cents.

I have an outside person set up to represent any short sales in my company. This person, though not directly employed in our office, works for our office and other offices. She is very well versed in the art of Short Sale negotiation and in my opinion does it far better than most Realtors. She negotiates her own commission.

This is not turning a client over to an office clerk but rather someone with a lot of expertise. We recommend lawyers, mortgage brokers, inspection companies, why not Short Sale specialists?  I have always felt that if the people who are most proficient in something are the same ones handling it, then all will go smoothly. Personally my client is going to get much better representation if I have a skilled negoitiator doing this while I handle the Real Estate aspects for which I was trained.

This is NOT to say that the Realtor does not follow everything closely and must be right on top of what is going on at any given moment. I have seen many botched Short Sales. Too many went on to foreclosure after having ready willing and able buyers only to sell for less than the original offered price. This, to me is a tragedy and some of the reason is uniformed people are handling these.

The company I am referring to is Alliance Loss Mitigation (Spokane Wa)

Andrea—I'm a Loss Mitigation Consultant. Initially I worked for a company specializing in loss mitigation. I became certified through them, but I'm now working as an independent. The services I provide takes the drudgery of short sales off of the Realtor which allows them to do what they do best. Staying on top of lenders and making certain that each case moves through the system as efficiently as possible is what we do best. The Realtors and clients I work with appreciate my expertise and the positive relationships we build together as a team.

This has been a inteteresting topic so far.. think I will PARK and watch the debate :)

I work with a partner who primarily works the files and keeps our clients informed with weekly updates... while I prospect and market the listings.

Just closed another Las Vegas short sale this past Friday.. 45 days from the day the offer was submitted and accepted by our selling clients.

We currently have 14 Las Vegas short sales for sale...

No way would we just pile the file on one designated person for the office... We know our clients and we should not behave like the banks having one person handling a hundred plus files....

I get uncomfortable reading brokers in this thread state that few short sales close. If this is your experience, you really ought to refer those listings out. I close 9 out of 10. I have cut my commission once since 2006.

There are experts in your market in most cases. If short sales aren't working out for you, refer them to someone who'll pay you a fee at closing and will get them closed- that is what is best for the client.

To Andrea- if what you are doing works, keep doing it.

Wow - what a great discussion / debate.  I agree with J. Phillip above.  Every short sale listing that we have taken out has SETTLED.  I am pretty excited about that.  And Philadelphia is not really a short sale haven.  If the agent knows what he/she is doing on the listing side, there is a good chance of success.  Also a good buyers agent is needed to go over the process.  I think having an assistant is a great idea to help with the logistics so agents can do what they do best, sell and communicate with their clients !  The person certainly has to be proficient and an expert.  That is one of the great things being in a husband and wife team as Stephanie typically is in more contact than the bank and I am out on appointments.  And if need be, I will step in with the Bank as well.   This certainly is a great topic.  It looks like some of the people are talking about the buyers side where my impression is that the original post talks about being on the sellers side to work on procuring more listings and having help with the logistics of each deal... similar to a conveyancor per se but more experienced to deal with the communications and headache requests that the banks make (over and over).  Often times, we need to send the short sale package 3 or 4 times as it is lost or mishandled, or the authorization needs to be sent over mulitiple times... or the HUD-1... and on and on.  Especially when the file gets "reassigned".

Andrea,

I have an attorney for a small fee will take care of the negotiating for you.  She has even given some Teleseminars and is quite good at it.  Just as Lenn commented how much are you willing to give up?  I mean I have admin and we have a transaction coordinator in the office if you are inclined that for a price will manage the transactions.  To date we (my team) have been able to handle everything in house but, I am seriously thinking of using my attorney for the short sale negotiation.   Nothing prompts more attention then legal letterhead. 

ANDREA,

If you earned that designation and you can explain the entire process to your client, then you are able to negotiate the sale. Don't sell yourself short (no pun intended). I earned the CDPE and I believe I'm better equipped to negotiate the sale than most "processors." If you understand the consequences then you can help your client navigate through all that and you can do it better than anyone because they are your client. I'm sure "Wonderwoman" is great, but what happens if she's not around? YOU CAN DO IT!

The experience you will gain and the knowledge of the process will help explain everything even better and it will give you incredible credibility. Do you know what happens with those assets? You will have to spend less time prospecting. The homeowners will come to you.

LARRY,

I don't know the specific rules in NC as to who negotiates the Short Sale, but my experience has been the opposite of what you believe. A lawyer's letterhead does not prompt any kind of positive attention in the Loss Mitigators. The lawyers usually have their paralegals do the paperwork and submit all the forms.

The are some great processing companies out there, but they are not miracle workers. If they're honest with themselves they will tell you that the negotiations are as strong as the package that is submitted. In other words, the better the package that he agents put together...the better the negotiations will go. There are no secrets, it is just a big numbers game. Will the lender lose more by accepting you contract or going through a foreclosure. The better job the agent does in showing the short sale is the best bet, the better chance there is of an approval.

An by the way, if there are less expenses on the HUD there could be more for you in a commission, I've gotten up to 7% approved.

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I wouldn't hold my breath for a broker helping out...many are just trying to stay "in" business...get a va....We have...it's the only way to fly and do SS and keep moving !

You may want to check with your local title companies, First American Title in my area has a short sale specialist and she is awesome. The fee is $1000.00 paid at closing (bank includes it when negotiating). If the deals fall through no fee is paid! I would not trust just anyone and my gal has no contact with my client everything goes through me. For me it's a win/win at least until I do a few more and get a little more comfortable with it. Not so sure that Brokers would be jumping on the boat!