Homes sales have fallen dramatically. Why aren't more short sales
being completed? What happens if at the currently listing price you
are not short but the offers you are recieving will require you to
bring money to the table? Why are seconds starting to hold out for big
money?
How many homes has your Realtor sold in the last three months? how many
have been short sale? What percentage of his listings are those sums?
This is a critical time. You and your Realtor should not be
experimenting. Homes that sell and homes that sell short are being
sold because some Realtors have been smart enough to adapt, negotiate
and win.
Our firm has referred listings out all over California and Florida. We
have seen many short sale programs in action. Very few are designed to
do the job propertly. Most are cobbled together from old techniques
which no longer work.
Being a nice person and having great customer service does nothing for lenders.
This market calls for very compent, very skilled, very persistent business minded people.
First a California Realtor must design a program to find buyers in a
slow market California real estate market. (very few Realtors know how
to sell homes right now. Last years techniques are not working. If you
don't believe us ask your Realtors how many short sales they have
closed in the last 3 months.)
If a Realtor does bring an offer to the lender - a real professional
will package it with a HUD 1, a pre-approval from the buyer, a copy of
the listing and the purchase agreement, a compelling CMA designed to
let the reader know the value quickly, but also packed with enough data
to get an accurate feel for the overall market. Very few Realtors are
campable of really proving value to a lender. (Has the Realtor designed
program designed to prove value to the lender?) I have only spoken
with a few Realtors who even understand the question.)
Next absent using a lawyer to leverage a legal campaign aginst the
lender - a Realtor has to design a good short sale package and create a
compelling executive summary regarding the sellers hardship. A
Realtor must dance on the ehad of a pin. They wish to get the short
sale approved so they get paid, but if the short sale is not approved
they had best not have compromised the Sellers financial position.
Lenders loss mitigation departments are collection deparments. When a
Realtor reveals job information or asset information they may be
compromising the sellers ability to work out a deed in lieu or protect
they assets from debt collectors. (This is why we say a short sale
should be part of a comprehensive work out plan.)
Finally, the Realtor should be working with a lawyer to protect the seller from liabiltiy on the underlying note or taxes.
Finally, before you sign the listing agreement - ask for a copy of the listing agreement. Review it for the following:
1. Your right to reject the lenders terms and conditions:
2. Your right to cancel the listing at any time upon advice of your
attorney. (your lender may have just agreed to accpet a deed in lieu
of foreclosure.) :
3. Clauses which should supplement the California Association of Realtors short sale addendums.
If you would like more information about what should be in a good short sale program fill in the form below and let us know.
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