Confessions of a Short Sale Expert in Reno

                      "Genius is the art of taking pains" - Jane Hopkins

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(August 2011 Update:  Check our NEW Reno Short Sale Expert Pages for in-depth short sale information -- Short Sale Approvals, Search Reno Short Sales and Short Sale Info. )

 

What is a short sale expert? I first wrote this article back in February 2008, my first full year in being immersed in short sales.  Now we're half way through 2010. I think it's just time to update it =) .  In this post I just want to be candid and share my experiences with you.  I have tons of other short sale posts that are already technical and serious.

 

Almost three years and 26 closed short sales later, I'm starting to have a clearer picture of what a short sale expert is:

 

1. KNOWLEDGEABLE. Knows the process and dynamics. Educates the client about the pros and cons of a short sale, sometimes a short sale is NOT the best option. Even small details like updated phone and fax numbers (sometimes if you have an incorrect fax number, you won't know until after two days) helps speed up the already-long process of short sales.

 

2. PERSISTENT. Keeps a close eye on the whole deal until transaction is completed. Patient and with dogged determination to get it done for the client. To add to that, the client needs to be AS committed in making the deal work. It really is a team game.

 

3.HONEST AND UNSELFISH. Knowing that every short sale is a “case by case” basis,              being honest enough that sometimes a short sale might not be the best alternative for the client. This in kind means losing the deal, time and money.

 

The things I love about short sales now are:

• As the number of short sales continuous to grow, all of us agents have greatly improved. Both on the listing side and the buying side. Everyone wins with this. Buyer and sellers are more educated than ever.

• I look forward in opening my Equator system, (Bank of America’s short sale platform) than calling a 800 # that does not pick up (GMAC, CHASE MANHATTAN).

• I love Bank of America’s customer service representatives. For quite some time now, they have been by far the friendliest and most helpful short sale reps hands down.

 

The things I still don't like:

 

 

• Second lien holder’s protocol to lower down my commission while I am getting them the money they wanted all along. Okay, not all of them but most of them.

• The long delay of the investor’s response time. There is no penalty to them aside from what is already obvious (foreclosure) if they don’t respond on a timely manner.

• MI (mortgage insurance) companies always wanting more money upfront from borrowers who truly have a hardship and at times not penalizing the ones that do.

• Customer service reps that tries to tell you over and over again “We do not have your authorization” while all along, you called yesterday and a different person confirmed that they got it and you have one week to postpone foreclosure and it will take another 48hrs for your “new faxed authorization” to be in the system and by then “we cannot guarantee that it will be postponed.” Ahhhh!!

• Clients who wait for the “11^th hour” before they call back. And towards the closing of the deal use the line “I really don’t understand why I have to water the lawn while I’m already losing the house…” C'mon.

 

 

Is there really a SHORT SALE 'EXPERT?'

 

 

Before I tackle the whole “expert” argument, I want to say that the buyer's agent on a short sale also need to know how a short sale works in order for them to be able to communicate that to their buyers-- that the “short sale” tag does not mean a short one at all but in fact a “long short sale.”

 

He needs to educate to help keep the deal together and get their buyer the best house for their money in the area that they want. Patience is the key.

 

So now the name “short sale expert” does not only mean on the listing side of the deal. It is also very necessary now on the buying side. A buyer’s agent would ask me “how many short sales have you done?” in order for them to see if I knew what I was doing on the listing side. I also ask the same question to them in order for me to see if they knew what it takes to get this deal done.

 

Smart buyer's agent also asks “which banks?” Meaning, which banks are you negotiating with? Usually, if it's Wells Fargo, it's thumbs up; if it's Bank of America/Countrywide, thumbs down. But I have to say Bank of America has done a better job with their new system called Equator—they ask the agent and the home owner to upload documents that different short sale negotiators from the bank, review from time to time.

 

When the banks held back in listing their foreclosed properties, inventory got thinner. By late 2009 to the time I write this, there are not many homes to choose from, which is why we are seeing a lot of multiple offers in the starter home market.

 

Bank-owned homes are still high on everyone's list because it's faster to close than a short sale, but we've come to the point where there aren't many good bank-owned properties.

 

Many of my buyers get so tired in encountering “Multiple Offer” situations on bank-owned properties; losing even after offering $10-15k over the asking price. “I thought it was a buyers market Joe?” And I go on to explain the whole shebang why REO's are in great demand. I assure my clients that it’s the way the market is for now, nothing more nothing less.

 

Hence, buyers proceeded to the next best thing---short sales! Now, about half the agent population is claiming to be a short sale expert!

 

Does this mean that we agents got better in doing a short sale? Perhaps.  But an expert is more of the things I mentioned in the beginning of this article.  We agents need to have knowledge, perseverance and heart for clients.  I think that's the closest definition of a short sale "expert."

 

From my experience, a successful short sale deal happens when seller and agent acts as a team:

 

 

Two years ago I started being picky on what short sale listings I worked for. I just don’t take a short sale listing just so I can have a listing. I interview them as much as they interview me.  There have been at least 3 instances where I worked for 1+ years to make a deal work and just before closing sellers decide to go do another thing (not within reason). 

 

So I learned to look for certain things that are “red flags” that convey a lack of committent on their part. The seller’s cooperation and trust is greatly needed in order for me and them to have a successful short sale.

 

I also no longer call it a “commission” but a “success fee” since it is a success fee once I get all the terms agreed by the bank, the seller and kept the buyer at bay.

 

I commend the board of Realtors for their pursuit of educating us in the business of short sales. These last three years a ton of classes, seminars and certifications have taken place for the goal of having short sales done the right way and explained the right way.

 

Three years ago, Craig King, our COO at our Reno office was adamant in having all the agents take a short sale class before taking a short sale listing. They continue to hold classes and seminars to keep us updated.

 

Thanks Craig! 

 

See also:

 

 

• Reno Short Sale Expert Pages: Short Sale Approvals, Find Reno Short Sales, and Short Sale Info.

• Short sales in Reno & Sparks: An easy-to-understand-guide

• Introducing: a simple guide to short sale and foreclosures

• Why do banks take so long to approve a short sale?

• RENO SHORT SALES HOME PAGE--over 20 articles!

• Introducing a simple guide to short sale

• Randi Bennett talks about short sales and foreclosures

 

 

                           

(this was my original post in Feb 13, 2008..found below this ad)

CONFESSIONS OF A SHORT SALE EXPERT in RENO
             

Working on a short sale listing was never on my short list.  Many horror stories have been told.  We were advised to stay away from it, if we can.  Much to my surprise a few people came to us asking for help on their homes.  And with hesitation, I leaped into the world of selling short sale homes.

Here's what I learned so far:

• It takes me thirty minutes on the phone(on hold) for a simple 'Yes or No' answer.

• Yesterday, I faxed a letter (asking for authorization) to the bank five times before I got what I needed.

• You can be sure that delays will happen in the deal.

• However great the need, you can't be a jerk. You're at the bank's mercy.

But at the end of the day, I realized the rewards for sellers far outweighs the difficulties.  It is still worth a shot.

If you, or anybody you know need answers to your questions about short sales, you can call me directly: 775.338.7653. Or if you want to know more about me
go to: www.RenoHomeBlog.com

 

Note: Joe currently has 25 short sale listings 11 of which are in contract (updated:4/3/2009).