Short Sale Mountains to Climb.

By
Real Estate Agent with Better Homes and Gardens Real Estate Metro Brokers

Short Sale Mountains to Climb. Photo by Richard WeisserAfter being told yesterday that a FHA short sale that took six months to open had been unceremoniously closed after six additional weeks without a negotiator being assigned, I began to what in the world “loss mitigation” is all about.

I fully understand that these departments are understaffed and overworked. I also realize that my offers are just a drip amidst the torrent of underwater files that need to be salvaged from the oceanic depths of distress.

But regardless of the overburdening of these workers, there still needs to be channels of communication open and available. Most people are patient as long as they KNOW WHAT IS GOING ON!

Frustration is the offspring of ignorance.

Just less us know the situation and we will deal with it.

But please do not ignore us.

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Rainmaker
574,201
Gary Frimann
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
California Broker and REALTOR

Richard, wiser words have never been spoken.  If we know what is going on, we can deal with it.  I think this was the major mistake by lenders in dealing with a problem they are jointly liable in creating.  I am not sure the staff knows what it is like on our end, and how their lack of motivation or caring affects real people's lives.

Oct 05, 2012 05:14 AM #1
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Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Richard, it is poor planning on their part, to say the least. It is like an old house that has been added on to here and there, without permits, because they needed a room over here, over there, because they had gramma move in, because they wanted indoor plumbing.... fast forward to years later and the house is a total disaster. That is what these lenders have done, they didn't understand the mechanics, they didn't look at the full picture. They rigged these departments quickly, added people here there and everywhere, many times just warm bodies with no real power.

Although, having said that, there are 2 lenders I would work with in a heartbeat. They were smart early on and someone had the insight needed to make it work.

Webster Bank actually takes a foreclosure file and hands it to their short sale negotiator. No surprises there at all. And they are easy to work with.

Union Savings Bank .... a local lender, is amazing. They make decisions quickly, they understand the urgency on our clients part, even on their part.

Sure it might be that they are not as overwhelmed as large lenders, but if you reaped the benefits of being so big, (as in money) then you should have the money to set it up right, to do it right.

It is all a matter of relativity. Smaller lenders may have less foreclosures and short sales, but they have fewer employees.

I hope I have made sense with my thoughts here.

Oct 05, 2012 05:33 AM #2
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Richard Weisser
Better Homes and Gardens Real Estate Metro Brokers - Newnan, GA
Richard Weisser Coweta Newnan Homes for Sale

Gary...

One of the real problems is that the staff does NOT understand our role in the process. I do take the time to educate them. Thanks so much.

Andrea...

We have a few local banks here that are the same way. Real people making real decisions. I have often wondered if the big outfits are charging by the minute. When you think about it, 50% of the conversation is that repetitive crap. Thanks for the super comment, my friend.

Oct 05, 2012 05:45 AM #3
Rainmaker
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Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

That whole process must be frustrating Richard, my hat is off to those of you who specialize in it.

 

Frustration is the offspring of ignorance.

Oct 05, 2012 06:41 AM #4
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional, 931-920-6730 - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Richard, I sometimes I think that short sales were created to teach us agents and our buyers patience. The unknown part of it all and the lack of communication is what is so very hard to deal with.

Oct 05, 2012 07:53 AM #5
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Anna Banana Kruchten
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana of Real Estate!

Richard some of what these banks do makes absolutely no sense. And many of the folks working on this file have no clue as to how real estate and/or short sales work.  I feel your pain...been there done that and don't want another T shirt.  I've got several going on now and 2 of them are in some kind of outer space zone and nobody is making sense.  Maybe they're hiring aliens?  Hmmmmm???

Oct 05, 2012 08:09 AM #6
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Peggy Hughes
PHA/Peggy Hughes Associates - Professional Moving Organizer - San Francisco, CA
SF NYC LA

I can not even begin to imagine how frustrating situations like that are for you agents.  I, for one, don't have the temperment - it would stress me out big time!

Oct 05, 2012 08:11 AM #7
Rainmaker
488,116
Patty Da Silva, Davie, Southwest Ranches Cooper City, Plantation, Weston, REALTOR
BROKER of Green Realty Properties® - 954-667-7253 - Davie, FL
Top Listing Broker

Communication, imagine that.

Oct 05, 2012 08:58 AM #8
Rainmaker
1,820,142
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Sadly, the short sale process isn't any better now than it was several years ago in many instances.

Oct 05, 2012 10:13 AM #9
Rainmaker
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Michael Blue
Home Smart Realty West - Encinitas, CA
REALTOR - 760-889-8877, Encinitas/Carlsbad
I could say I have been lucky and that hasn't happened to me because so far the negotiators I've dealt with are quite responsive And get back to me within 24 hours if not sooner. But I do solicit short sales with certain lenders. Wachovia and then Chase.
Oct 05, 2012 11:19 AM #10
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Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

I work with short sales, but I hand the negotiating off to my broker, who is not only one  of the most patient people I know, but also the smartest as far as knowledge as to how to deal with the yahoos at the "banks". 

Wishing you all the BEST....Suzanne 

Oct 05, 2012 01:33 PM #11
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Tammy Lankford
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Your Lake Sinclair Expert (706-485-9668)

just had this happen with a chase file.  Then they refused to do deed in lieu for them too.  I wanted to climb through the phone and strangle them when they told my seller he would have had to make that request in writting last week. 

Oct 05, 2012 04:48 PM #12
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