When Short Sale Assumptions Become Truisms - The Case of The LALAs

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Real Estate Agent with Trademark Loss Mitigation

LALAs.  Largely Acceptable Legacies of Assumptions. 

A term from my “corporate days” pertaining to incorrect methods, statements or policies perceived by some to be relevant or “the way things are or are supposed to be” and becoming acceptable “truisms” by others.   

I just got a very frantic call from one of the Realtors for whom we negotiate their short sales.  We are currently working on three (3) of his short sales from Bank of America.

He was beside himself because of the “new policy” from B of A requiring the seller to pay or come to the table with 10% of the deficiency difference.  He was told by more than one of the agents in his office that B of A recently changed their policy and now requires the seller to come to closing with 10% of the difference between the payoff and loan value! 

While I had not heard of that policy change B of A or any of my resources, I was nevertheless interested in finding the source of the information and if there were any truth to it. 

It seems that one of the “short sale experts” in his office (she has done 5 – and this was her first BofA short sale) recently had the lender require a seller contribution of 10% of the deficiency (as a promissory note it turns out).  

The reason as it turned out?  Not policy – but because the seller had over $100,000 in his checking account! 

I’m not sure what is worse.  Inexperience passing on misinformation as truisms.  Or inexperience taking this misinformation as gospel.  

Like I said.  LALAs.

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Houston TX, Spring TX short sale specialistThe Trademark Loss Mitigation team is a family owned business and  includes a multi-state network of real estate agents, attorneys, title companies, short sale negotiators, credit repair providers, mortgage providers, inspectors and investors. Together, those professionals act as a NO COST short sale outsourcing solution for Realtors and Homeowners.

Jim McNinch, Certified Distressed Property Expert (CDPE);

Short sale agent, Short sale specialist

Jim@trademarklossmitigation.com
http://hosted.cdpe.com/trademark
http://www.trademarklossmitigation.com
832-330-4588

 

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Rainmaker
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Minna Reid
Keller Williams Greater Hartford - Southington, CT
Team Lead - Reid Real Estate Group

I hear a lot of this. Just yesterday I got a call from a seller whose short listing went nowhere because the listing agent had gotten some really great info from a "short sale expert". Such info being the seller would have to bring the entire deficiency to closing. After a while the seller started to question this info and called me for a second opinion.

Well hello people - that is not a short sale, that is a sale.

"experts"...

Oct 14, 2009 04:39 PM #1
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Rainmaker
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Jim McNinch

Short Sale Specialist, Texas
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