As many people know, Fidelity Title of Maricopa County in Tempe hosts an invitation-only monthly Short Sale Mastermind Group, loaded with the Valley's top talent when it comes to handling distressed properties.
This month's presenter was Desiree Montgomery from Realty Executives. Her overall message was that real estate agents can't wing it when it comes to short sales, it is critical to have established processes for consistent success.
Here is a rundown on her key points that you might be interested in:
· When it comes to negotiating a short sale with the lender, don't stop at the loss mitigation level. Find out who the decision makers are, and bring them into the mix. Their 10k public documents can be helpful.
· When you have a first and a second mortgage on a short sale home, work both of them at the same time.
· If both liens are not serviced by the same bank, the first does NOT have the right to dictate what the second can negotiate to mitigate their loss, according to the Office of Controller of Administration for National Banking.
· Have your seller keep making payments, even if they are partials. Lenders want to mitigate their loss, but are hesitant to offer an unsecured note to sellers that don't show effort and responsibility for their situation.
· Anything related to taxes, credit reports and legal issues are not an agents area. Don't advise them - pass them through to experts in these areas. Anything else puts the agent at risk of losing their license. There are many issues that will impact the seller long after the closing, and selling that house is the ONLY thing the agent is responsible for.
· 52% of sellers do not do a short sale after discussing their options with legal counsel experienced in real estate law. It is not always the best solution.
· To protect yourself, surround yourself with professionals with a deep understanding of banking and real estate law. Referral your clients to them repeatedly in writing.
Thanks for the GREAT advice, Desiree!
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1 comment:
The problem with short sales is that you are dealing with a human being with hundreds of files on their desk. If they say NO to a couple hundred of short sales then the files are taken off their desk and moved over to someone else's desk in the REO department. The overwhelming workload of the loss mitigation managers is the number one challenge to overcome when doing a short sale.
It is getting much easier than it was but you NEED a professional real estate agent who is experienced in short sales. It's not by area of expertise, I prefer doing REO sales but my hat is off to any agent who has figured out the short sale market. Short sales really are win-win for everyone involved including the bank.http://www.bpos4reos.com/blog
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