Posted by David Gubler on December 29, 2009 at 11:13am
To Use A Short Sale Negotiator Or Not?Tough Question! There are a handful of good companies providing a great service to listing agents. Unfortunately there are many that simply obtain the components of a short sale package, submit it to the lender, and then cross their fingers and wait. This is NOT short sale negotiation! If that is all they are doing then we need to use different nomenclature... they are then merely a short sale facilitator or processor.The concept of using a short sale negotiator has merit. An experienced negotiator does have a better chance of obtaining a beneficial outcome from the lender(s) than most real estate agents. Why? Because if they really are negotiating short sales in volume then they do have...1. More experience with lender procedures and parameters.2. Actual contacts with decision-makers & a bona-fide ability to escalate a lingering short sale transaction.3. Enhanced ability to maintain persistent follow-up.4. Effective solutions for rebutting the lenders value determinations, settlement amounts, deficiency judgments, promissory notes, etc.All short sales will NOT be approved by the lender(s)! Noone can guarantee that! A good short sale negotiator will provide the following to a listing agent and their clients:1. Reduce the time it takes to complete the transaction.2. Improve the commission retention rate of the agents.3. Effectively negotiate better settlements (lower!) and reduce the incidence of deficiency judgments and promissory notes.4. Most importantly... free up more of an agents most important asset... TIME! Affording agents more time to focus on business development and acquiring more listings.
I have to say - I do believe in having a reputable company handle your short sales for you - as long as the company has great follow-up with you-the agent. I have found that I have had to contact the Short Sale Company that I hired and that I'm paying - so much that this last transaction would have gone better and perhaps smoother if I handled it myself. It's interesting - when I hired the company, of course I was under the impression that the owner of the company would be handling my files personally! He's the one with the experience that sold me! Unfortunately, it's not working that way. I am definitely a person who is use to having control especially when they are my clients and my files. I need to know what is going on at all times. If I don't ask specific questions, I feel that I’m getting very vague results. I hate receiving vague updates - So - Bottom Line - Definitely HIRE THE RIGHT COMPANY TO HANDLE YOUR SHORT SALES. Free up your time- but make sure you qualify them properly and you have everything documented in your file. If anyone has a great company they would recommend for South Orange County, please let me know. Thanks.
I agree with Stephen, I was lucky to find the right person. I know here in Maryland there are about 4 reputable companies with experience in short sales and good results, I found one who is very honest and she does a lot of pro-bono work for non profits, and helps out the community. I did my homework and look into all the things that you have mentioned.
I am currently searching for a CPA to help my clients with tax questions and advise, I haven't been able to find the right person. but I am sure I will find the right CPA for my clients.
Also we believe in the law of reciprocity, and my attorney has referred business my way, it is great when you have someone that wan work with you as a team.
I use a lawyer to help me negotiate my short sales, she has proven that she has been able to get through to the banks when I hit the brick wall. She also helps me save time and provides the legal advise that mi clients might need and that I can't provide.
It helps been able to organize the entire short sale package at the beginning of the process and having the right negotiator on your side also helps educate the client and prepare them even if they are in denial that the short sale is the best option and maybe they are waiting for a miracle from the government or the lottery.
Also I don't pay the negotiator out of my commission, she alse negotiate her legal fees into the transaction, and helps me provide a more accurate HUD1 for the bank approval and to research title for liens, etc.
The next member of my team that I am looking for right now is a good CPA to help my clients with their tax questions. I am sure I will find the right person next year.
Jessie I agree and without premission and disclosure you could have an agency and or licencing issue down the road. In Ca. most agents or brokerages require that all people doing any form of negociation have a Real Estate Licence. This is going to get very interesting in the next few months as the Treasury adopts the new programs. Even thou this is the holiday season, my fellow brokers are all working the rumor mill to try and figure out what is going to happen.
Jesse, I agree with you in general. The outlandish claims made by most 3rd party negotiators gives a bad name to everyone involved. That being said, there are a rare few... myself included that are knowledgeable, experienced, and effective. (Anyone that claims 100% success rate should be tar and feathered!)
Comments
I am currently searching for a CPA to help my clients with tax questions and advise, I haven't been able to find the right person. but I am sure I will find the right CPA for my clients.
Also we believe in the law of reciprocity, and my attorney has referred business my way, it is great when you have someone that wan work with you as a team.
It helps been able to organize the entire short sale package at the beginning of the process and having the right negotiator on your side also helps educate the client and prepare them even if they are in denial that the short sale is the best option and maybe they are waiting for a miracle from the government or the lottery.
Also I don't pay the negotiator out of my commission, she alse negotiate her legal fees into the transaction, and helps me provide a more accurate HUD1 for the bank approval and to research title for liens, etc.
The next member of my team that I am looking for right now is a good CPA to help my clients with their tax questions. I am sure I will find the right person next year.
A problem I have ran into is, you can't verify a Short Sale Negotiators success rate....it's almost impossible.
My problem with Short Sale Negotiators, no accountability, no transparency and no legitimate verification of previous success.