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Why do Short Sales?

By Bryant Tutas

Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

March 08, 2009 11:36 AM

Yesterday, Janie Coffey and I were invited to participate on a teleconference hosted by Jennifer Allan about short sales. If you didn't tune in...here's the replay (Please remember this is copyrighted material so check with Jennifer if you want to use it).

My portion of the seminar was........Why do Short Sales? I was fist so please check it out and let me know how I did. I've only done two of these seminars so I'm still trying to figure them out. What I learned this week is that I talk too much!!!!

Here's a very small portion of the transcript.

You've probably heard...."Short Sales are difficult and a big waste of time" and "Rarely do they close and when they do you don't get paid". I

If you believe these statements to be true then one of my goals with this seminar is to prove you wrong.

Listing and selling Short Sales is all about helping Home Owners in your Community salvage their credit.
It's about helping real live people with getting through a difficult time in their lives.
It's about being there for them.

Think of all the people you may have sold homes to over the last few years when the market was booming. If these folks are now struggling don't you owe it to them to help them out?

If you don't want to help people and just want to do Short Sales to make a ton of money then do me a favor.....quit reading this post now and just move on.

People are hurting and they need SINCERE agents to help them. OK? Instead of resisting Short Sales you need to be learning the skills it takes to become the "Go to person" in your community. When a Home Owner needs help they should be calling you.

You should be attending seminars on Short Sales and reading everything you can get your hands on to increase your knowledge of how Short Sales work.

The Short Sale process is changing daily. Get into the game. Every time you get a Loss Mitigator on the line.....pick their brain. Call the Lenders and talk to them. Ask them for their "Short Sale Package and Guidelines". Talk to other agents who are successful at Short Sales. Constantly be asking questions and learning. You'll never know it all but you can know enough to help.

This current market is full of opportunity for REALTORS(R) who are willing to help and willing to learn. Home Owners need you. In fact, there has never been a better time for a REALTOR(R) to show their worth. If you have the right skills you can not only help a lot of people but you can also make a lot of money doing it. So get out there!!

FAQ #1 What is a Short Sale?
FAQ #2 What is a Hardship and why do I need one?
FAQ #3 What goes in the Hardship Letter?

DISCLAIMER: I am a Florida Licensed Real Estate Broker. This article is my opinion based on years of experience and the laws of my State. All Sellers are urged to seek competent legal and tax advice. I am NOT qualified to give advice in those areas.

CENTRAL FLORIDA REAL ESTATE SHORT SALE INFORMATION

Don't Sell Yourself Short. An E-Book by Broker Bryant. Coming soon!!!

MORE INFO FROM BROKER BRYANT... THE SOURCE FOR CENTRAL FLORIDA REAL ESTATE

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Regina P. Brown

MBA Broker Consultants - Carlsbad, CA

M.B.A., Broker, Instructor

Broker Bryant, good job on the tele-seminar! I heard a little but will listen to the replay. We all hate doing short sales, but since they're driving our industry right now, we might as well get used to them -- and learn to do a good job for our clients.

Join my new AR group and post your blog at http://activerain.com/groups/virtualoffice

Regina P. Brown

Mar 08, 2009 04:39 PM

Debe Maxwell, CRS

Savvy + Company (704) 491-3310 - Charlotte, NC

The RIGHT CHARLOTTE REALTOR!

Okay, if it were anyone but you, I would NOT have come back to this very serious post and do this but, I just HAD to share my "secret word" for my first posted comment on AR just now! TLW, this one's for you:

BB's Secret Password

Debe in Charlotte

Mar 08, 2009 04:42 PM

Sheldon Neal

Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ

That British Agent Bergen County NJ

LOL @Debe !!!!!

Mr B !!

I'm totally with you and I think some who are not necessarily working Short Sales so efficiently may buckle at committing 100% to them.

I have been involved with 4 SS this year so far and all have been approved. 2 were my listings (one closing tomorrow :o) and 2 I have the buyer. But even when I had the buyer, I partnered with the LA to assist the process to help cover all angles.

Like you and Elizabeth, I am comfortable with short sales and the opportunites they offer, so great job with the podcast and being generous to share this info.

Cheers !

Sheldon

(oh and dare I ask what the heck a 'goatnut' is ??? )

Mar 08, 2009 04:52 PM

Ronnie Margolis

KW Kauai - Kapaa, HI

Kauai Realtor - CDPE, ABR, RA - On Top of the Aloh

I'm grateful for the link to hear what you have to say. SHort sales are here for a while and the more facile we become the more short sales can increase our income streams. Maybe one day the banks will start to make it a little easier. After all, it's their money. LOL

Mar 08, 2009 07:44 PM

Neal Bloom

Brokered by eXp Realty LLC - Weston, FL

Realtor CRS-Weston FL Real Estate

BB,

I've still got a few on the ropes right now...I'm being a bit more selective in the ones that come to me...more like a consultation...if the odds look good then I'll take them...it really has to have a lot in the equation for the odds to raise a successful closing. I really try to let the clients know what to possibly expect...if you don't drill it through their heads then they might expect too much. I also try to stress the same thing to the buyers agents and their clients...sometimes they just don't listen and sometimes they claim to know the process...it doesn't help for them to call you every day for an update...it just doesn't happen that way. You have to be really patient.

Mar 09, 2009 12:13 AM

Debbie Summers

Charles Rutenberg Realty - New Smyrna Beach, FL

BB - I missed the call, but really appreciate the link to listen to the call.

I spoke to a family over the weekend about their situation and folks are really overwhelmed and need professionals like us to turn to. Short sales aren't fun, but I feel compelled to do them.

Mar 09, 2009 12:33 AM

Sally K. & David L. Hanson

EXP Realty 414-525-0563 - Brookfield, WI

WI Real Estate Agents - Luxury - Divorce

Short sales are not as common here as they are in many other parts of the country...Know what you don't know...and don't learn at the expense of a distressed homeowner !

Mar 09, 2009 12:48 AM

Julie Ferenzi

john greene Realtor - Plainfield, IL

Julie Ferenzi

Charging an upfront fee... now there's an idea! If they aren't making a mortgage payment, they've got to have some kind of extra money laying around. That in addition to being a little bit more picky about which listings we take on.

Mar 09, 2009 01:52 AM

Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375

Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI

Real Estate Services You can Trust!

H Broker Bryant, very nice and some great information. Short sales can be a win for everyone concerned if done correctly. I don't mind them a bit. Understanding is the key. Congrats on the feature too.

Mar 09, 2009 02:16 AM

Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional

Charles Rutenberg Realty - Clearwater, FL

Palm Harbor, Dunedin, Clearwater, Safety Harbor

Bryant - short sales are a way of life here in Pinellas County - I don't see how any agent can survive in this market and NOT do short sales!

Mar 09, 2009 02:25 AM

"The Lovely Wife" The One And Only TLW.

President-Tutas Towne Realty, Inc. - Kissimmee, FL

One of the most important things to remember about Short Sales...

You do have to pick and choose with whom you work with. If they're not motivated things can quickly turn into a disaster. All parties need to completely understand what they're doing. Some of you may have seen a post floating around this weekend where one of our own was having serious problems with her short sale customer. That was sad simply because it's an unmotivated Seller. That doesn't work in a short sale. Know you stuff Guys and if you have to turn away a few, then do. Do it for them and do it for yourself. We can't help everyone but we sure can try :)

That's all folks...Back to the Crap-A-Rama I go :)

TLW...ROAR!

Mar 09, 2009 03:00 AM

Robin Turner

Happy House Real Estate - Cocoa Beach, FL

Robin Turner

Yes, short sales are difficult and time consuming. But worth it.

Some people in trouble don't even know about them. I am working with someone who was just about to walk away from two homes. At least with a short sale she will only ruin her credit for two or three years, not ten

Mar 09, 2009 03:21 AM

real estate real estate

Providence, RI

Bryant, thank you very much for sharing the relay. I am listening to it while eating my lunch. I will put it in my car and finish the whole show.

Mar 09, 2009 03:37 AM

Matt Yogerst

RE/MAX Realty 100 - Menomonee Falls, WI

Metro Milwaukee Real Estate

I am on the same boat as Lenn... although I list Short Sales as well. So what if it takes time... it is just a waiting game, and if my Buyer's can wait, then they will reap the rewards of good negotiation skills.

If they(agent, not neccesariy BB) can't wait for a $ check... then maybe they should work at McDonalds. I heard they pay either every week or two.

Mar 09, 2009 04:40 AM

Petra Norris

Lakeland Real Estate Group, Inc. - Lakeland, FL

Realtor, Lakeland FL Homes for Sale

BB - This past Saturday was another learning experience for agents and for myself, who are interested in short sales. I'm taking it all in, read everything I can and have been in the past. Active Rain is surely a great resource of valuable information. You are a true inspiration when it comes to helping motivated sellers, who are in dire need to sell. I'm glad you are in my neck of the woods so what I read and learn applies to Florida. Thanks!

Mar 09, 2009 05:33 AM

Ronnie Margolis

KW Kauai - Kapaa, HI

Kauai Realtor - CDPE, ABR, RA - On Top of the Aloh

Listened to the teleseminar as i was going to bed. Thought you did well though it sounds like the main reason to do short sales where you are is because that's mostly all there is. We've got some funny laws in Hawaii (not really funny) that prevents realtors from helping with short sales if the clients are distressed ( 60 days late). The law says we can't talk to the banks OR give the clients any advice. Makes it a little difficult don't ya think?

Mar 09, 2009 07:08 AM

Anonymous

bobd

Great conference, Jennifer!

Two very knowledgable professionals. I work in Florida and agree with the current information provided by these professionals.

The time was short for explaining every facet of the process and the unintended consequences of the short sale arena. I would like to hear more from these two experts!

I liked the format for delivering the material and moderating the questions by Jennifer Allan went perfect with so many guests on line.

Here's a funny thing that happened at a recent short sale closing...the closing was scheduled and the buyer's loan package was at the settlement agent's office...the Uhaul was loaded and now parked infront of the home to be...the time for closing was in 2 hours and the short sale seller called the settlement agent with 1 hour to go and she said, "I have been advised to not sign a deficiency judgement for the short sale on my home and won't be coming to closing."...it did not close.

Having real professionals with real experiences in short sales like Bryant and Janie are a valuable resource in our community of professionals.

Great job!

Mar 09, 2009 11:48 AM

#58

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

Hi guys. I appreciate everyone stopping by and commenting. I have read each and everyone of them.

When I first decided I needed to start doing short sales I was not excited about it at all. Then I did a couple and realized they weren't that difficult. Now I LOVE them! They are very challenging and make my job more fulfilling than it has been for quite a few years.

The key to being successful is to screen the sellers thoroughly before listing the property so you only work with motivated and qualified sellers. AND be sure everyone understands the time frames. A buyer that MUST close in 60 days will not work. All this buyer will do is cal you every day and create stress.

Sellers must have legitimate hardships and buyer must be highly qualified and have patience. If you have these ingredients you will have successful short sale closings.

OK it's 8pm and I have been on the computer working since 5:30 am. I'm shutting down.

Mar 09, 2009 12:09 PM

Janie Coffey

First Coast Sotheby’s International Realty - Ponte Vedra, FL

Uniting Extraordinary Homes w/ Extraordinary Lives

BB this is my ring I wear when meeting with the buyers who want to call every day. I chant silently "I will only call every 5 days" and touch them slightly on the shoulder. So far the results I have gotten? A slap, an offer (and not the kind I was looking for ;-) and a very confused look ;-) Great post!