Short sale listings are increasing on the Multiple Listing Service with each passing day. Many agents in today’s market find these new listings challenging, yet frustrating and problematic at the same time. Here are some of the many issues real estate agents face when going through the process:
– An agent cannot start the short sale process unless they have an offer
– Due to excessive waiting periods, many agents do not want to bid on short sales
– It is common for buyers to “walk” before getting a short payment from the lender
– Once a buyer leaves the deal, the file is completely closed unless a new offer is provided within a certain period of time.
– If no offer is received, the agent must start the process again
– Agent spends countless hours faxing documents and waiting on hold with lenders (spends more time negotiating debt and less time selling property)
– After painstaking efforts on the part of the real estate agent, the lender tends to deduct the agent’s commission.
Fortunately, however, the collaborative efforts of real estate agents and investors can minimize the challenges and frustrations associated with the short sale process and lead to fewer overall complications. Now more than ever, real estate agents and investors must work together to create a system designed to minimize time and financial constraints while maximizing the key components of the short sale process: helping homeowners, selling properties and earn money.
Collaborative efforts by agents and investors allow banks, homeowners, and agents to better appreciate the benefits of the short sale process, in that:
Officers:
– Receiving a cash offer on the property starts the short sale process immediately
– Experienced negotiators working on the file increase the chances of closing
– The agent never has to send faxes, wait on hold or talk to the bank
– The agent receives double commission (Commission when we buy the property [A-B] And when we sell [B-C])
Owners:
– Increased possibility for the bank to waive the right to request a deficiency judgment
– Decreased chance that the homeowner will have to sign a promissory note
– Increased ability to avoid foreclosure
Banks:
– Lenders can pay bad debt
– Since foreclosures are very expensive (costing banks approximately $50,000 or more), this route saves the bank thousands of dollars!
Like the examples mentioned above, everyone wins when real estate agents and investors work in partnership. With agents and investors working together in a properly structured and streamlined manner, the percentage of closed short sale deals increases dramatically. This allows agents to focus on selling properties instead of negotiating a short payment. Let’s be honest; real estate agents were licensed to sell property, not to negotiate debt.
