HOW AGENTS CAN SUCCEED IN THE NEW SHORT SALE ENVIRONMENT.
1. Attend as much CE for Short Sales and Foreclosures as you can.
2. Qualify those buyers before writing offers. The market favors cash, high down payments, etc., more than at any time in the past 50 years.
3. Brokers should monitor agents' listings and sales more closely to avoid non-viable contracts.
4. BE CAREFUL and do NOT become engaged in illegal activities involving "MORTGAGE MODIFICATION".
THE SHORT SALES ARE GOING TO BE AROUND FOR QUITE A WHILE. As more home owners with negative equity MUST sell, expedited Short Sale regulations will move the transactions along to closing faster than in the past.
Once a real estate agent or broker understands the background and practices of the banks and servicers in a Short Sale transaction, we can offer better services to home owner/sellers and home buyers.
The new Short Sale regs are better than a sharp stick in the eye!!
LEARN THE NEW SHORT SALE REGULATIONS.
Will the banks always follow the Short Sale time lines? Experience advises us to not expect them to and prepare home buyers for the worst case scenario. If a buyer needs housing soon, Short Sales are not a good option.
Understand that there are so many loopholes in these new "regs" that an
elephant could jump through them.
Show me a normal transaction where the seller didn't respond to an offer to buy within 30 days and I'll show you a home that didn't sell. Agents and consumers expect to close in a short period of time. Banks do NOT.
The new and improved Short Sale regulations were most likely designed by entities who have no real estate transaction experience.
Resign yourself to accept the fact that the frustration imposed on consumers and listing agents and buyer's agents resembles the infamous water torture process.
Experienced real estate practitioners know BEST PRACTICES and these new short sale "regulations" are not an example of best practices. A very helpful article by Esku Kiuru gives some insight.
"FHFA – Federal Housing Finance Agency – had a friendly talk with Fannie Mae and Freddie Mac the other day and cajoled them into setting up firm short sale response time guidelines for mortgage servicers managing their home loans. . . . . "
This post inspired by Esko Kiuru, see: FHFA nudges Fannie Mae and Freddie Mac into action on short sales
ADVICE TO REAL ESTATE AGENTS AND BROKERS. . . . Train, train, train. The more you train, the more you'll understand the new Short Sale market and the better you'll serve the real estate consumer.
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.
"Honey, do you think we can close on this Short Sale before school opens?"
"I don't know Dear, our agent says it should take only 2-3 months or more but there are no promises."