RealTown's RealTalk

"My office has submitted many many short sales offers. We have reached the decision makers at many different financial institutions. The majority of the banks will not work with us, or they lose the offers, and never return the calls. It is not uncommon to make 15 to 20 calls to each lender. With foreclosures escalating why can't we get any respect or help from these lenders? They treat us like we are the enemy. The offers are decent, the buyers are qualified and ready to go. Why is the mind set of the lender to take the house back and not get it off their books.? We are all frustrated and hesitant to write an offer on a short sale."

We’ve often wondered the same thing.  My experience in managing an office is that maybe 10% of the short sales actually close escrow.  I believe the problem has a couple of issues to address:

1.       The staff at the lender seems to be in “bill collector” mode.  Are they judged on how much they can negotiate?   If it ends up going to foreclosure, “oh well” that’s not their department.

2.      The homeowner also is an issue, they have not always been totally up front with the lender up to this point, mainly because they are embarrassed, unfamiliar with the process and intimidated by the people on the other end of the phone. 

3.      And for the lender/investor, it is hard to believe that a home can lose that much value that fast.  It’s hard for us to believe it.

4.      Then we have the listing agent, who is negotiating on behalf of the seller.  What is their attitude?  Are they adversarial? Are they prepared?  Are they polite? Determined? Do they persist when the answers they are getting are not what the Homeowner needs?  Are they providing the volume of information to help the Lender make a good decision?  I have always believed that the listing agent is key to getting a short sale accepted and closed.

So what is the solution?  For the homeowner, having a Realtor in their corner is essential.  We at least understand the process and want what is best for our client, the homeowner.

The lenders needs to adjust their thinking about us and acknowledge the common goal.  Are we going to earn money in this process?  Absolutely!  Is the lender going to benefit from our expertise? Absolutely.  And what about the homeowner?  They are being helped out of an ugly situation with the hope that, in the future, they will be homeowners again.  A win for everyone.

One of the other issues you bring up about “get it off the books” is a big one.  As long as it is “on the books” it is an asset.  The minute they write down the loan that is no longer the case.

I often advise my agents to get past that first line of telephone operators to someone with more experience (if that exists) and authority.  Persistence pays off, most of the time. 

I believe it will get easier and more productive in the future.  Don’t give up, your clients need you!

Joellen Chappell, CRP

Broker Associate

Sales Manager

Century 21 M & M and Associates

3201 W. Ben Holt #111

Stockton, CA  95219

Direct (209) 249-6535

Cell (209)495-1188

Fax (209) 624-5407

___________________________________________________________________________________________

Nadim Aziz
Broker , ePRO, SRES
Paradigm Home Loans/Willow Financial                     Click for a FREE  Personalized Market Snapshot

Broker Associate
Coldwell Banker 

San Jose CA 95125
ph: 408-267-0562
fax: 408-448-8750

www.NadimAziz.com
naaziz@paradigmrealtors.com

Karen Mandel asks,

"My office has submitted many many short sales offers. We have reached the decision makers at many different financial institutions. The majority of the banks will not work with us, or they lose the offers, and never return the calls. It is not uncommon to make 15 to 20 calls to each lender. With foreclosures escalating why can't we get any respect or help from these lenders? They treat us like we are the enemy. The offers are decent, the buyers are qualified and ready to go. Why is the mind set of the lender to take the house back and not get it off their books.? We are all frustrated and hesitant to write an offer on a short sale."

Bruce Replies:  We don’t get any respect because the people at the other end of the phones couldn’t care less about these homes getting foreclosed upon or not.   If they set it up so there were people on commission who had to see short sales through to a close, then we would get somewhere, but these people are handed a zillion repo-ready homes, and a zillion short sales, and they don’t care!   You have to remember that even though we as agents call and are polite and kind to the lender employees, most of the people they talk to are the homeowners who are in financial trouble and are usually not very nice on the phone!  I have a short right now on a 200K+ house with Wells Fargo.  Our offer is a short sale by only 8K.  Wells Fargo has lost faxes, certified mail, and I think if I stamped the sellers financial info on their foreheads that their foreheads would fall off!

The only success I have had in short sales is through harassment.  I or an assistant call 6 times per day, every day until it is settled,  to verify that they have everything they need, and are working on the file.  If they tell you the file is not assigned to one person, then ask for a manager. Harass that manager until the file is assigned.  Then harass the person it is assigned too.  It is amazing how many times I have called and been told they have everything they need from me and are looking at the file, then 2 hours later I call and ask if they have everything they need from me and they say they need something like an updated financial statement from the homeowner,

It is only going to get worse, as there are more foreclosures and more short sales in the pipeline than ever in history! Forewarn your sellers and buyers, and if you get a legitimate offer and the lender is not working with you, tell your client that between you and them, you are going to bug the lender until you see some results.  Good Luck, and remember, they could care less!  

BrucePaluzzi@243-9999.com       Broker Associate, e-Pro, short-sale hater!