I joined a Short Sale processing company with Approvals in 6-8weeks not months

Replies

Mike Linkenauger May 10, 2010 at 5:15am

I agree Barbara that ideally we as agents should not be negotiating short sales, assistants or in-house negotiators are ideal. Attorneys are a different matter, in our areas an attorney does closing only mainly, having an attorney do the negotiating is the same as the agent negotiating it!! ITS NOT THEIR JOB!! Not to mention, there is till a kink in the chain of communication and the "arms length" aspect of the transaction.

Most brokerage companies have no problem complying with this when we send them referrals, and most understand the reasons why we suggest against 3rd party mitigation.

1.) No regulation to the industry
2.) Kink in the chain of communication between brokerage companies and buyer/seller (ex - updates on file status and process)
3.) Unneeded fees charged to SOMEBODY in the transaction is not ethical, when it is NOT needed.
4.) Fiduciary irresponsibility for agents and brokers

We can talk all day about agents not having the time or ability to negotiate, I don't disagree. But for the four VERY valid reasons above, just like "short sale flippers" who do nothing other than immediately flip a property to a REAL buyer two minutes after closing, 3rd party mitigation is an unnecessary part short sale transactions.

Competent agents, brokers, assistants, and IN HOUSE mitigation is necessary!

Just my two cents, for what its worth...
Mike Linkenauger May 9, 2010 at 1:50pm

There are MANY like this. Do they charge the buyer??

Its always something, as they WILL get paid somehow.

We work with thousands of short sales per month around the country. We don't allow agents in our organization to work with 3rd party mitigation companies with any of our files. It shows carelessness in the transaction and a lack of concern on behalf of the agent. 3rd Party mitigation companies are NOT regulated like brokerage companies, they have no fiduciary responsibility, and there is also a break in the chain of communication between brokerage companies and buyer and seller (arms length).

It is also NOT necessary in a short sale transaction to use another organization, as any competent person in a brokerage office should be able to mitigate.

Also, The short sale average approval time right now, all lenders together, is around six weeks...
- Barbara Pedersen > Mike Linkenauger May 10, 2010 at 2:31am
  
  Mike,
  I disagree. A good, ethical and experienced loss mitigation company is a great asset to your business. I do both. I negotiate some of my short sales and I use 3rd party for others.
  I have found out that as a listing agent I simply do not have time to negotiate all of my short sales. Actually my job is to list not to negotiate. That's what I was trained for as a real estate agent. And then, short sales happened....
  I absolutely do not think that it is carelessness and lack of concern on my behalf to hire a third party. On the contrary, the people I work with consist of an attorney and a team of excellent, seasoned and experienced negotiators who did short sales long before they became common. As a team, they devote more time and effort to my files that I ever possibly could and I believe that my clients are in very good hands.
  I would never dismiss the possibility of working with a 3rd party, provided it is a real deal as mine is. But then, maybe I am just lucky :).