Has Anyone Used a Facilitator for Short Sales?

By
Services for Real Estate Pros with Corregano & Milo Real Estate

Last week I wrote a blog about Short Sales Are Driving Me Crazy and received several helpful comments and shared stories about their short sale experiences.  One of the comments I received was from a company that wrote about their services as a facilitator who will handle the entire transaction. Sounded good and worth the expense, if they would handle the transaction and get the property to close. So I mentioned it at one of my office meetings, thinking it sounded like a good idea for the company.  After my meeting I was approached by one of the Realtors in my office who shared their experience in hiring a facilitator and how they were paying approximately $600.00 a month for their services.  After hearing their story about the expense and the endless paper work they still needed to do plus additional paper work for the short sale company they hired, a good idea initially seems to be expensive without alleviating the work involved in the short sale process.  Also 1 year later and the property still didn't close.  My question is does anyone know of a company who provides this service and really does what they promise all the paper work and handles the entire transaction. Also like a realtor, if we can't get the property to close we don't get paid so why should they.

Posted by

Kathy Wynn

NYS Licensed Associate Broker

Appleseed Homes

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Rainmaker
194,622
Sandy McAlpine
McAlpine Properties - Cornelius, NC
Search Lake Norman Homes For Sale - Lake Norman NC

I do believe a facilitator can help the transaction go more smoothly but I also believe that the cost is extremely high and a knowledgable real estate agent can do just as well.

Nov 22, 2008 10:25 AM #1
Ambassador
570,610
Lizette Fitzpatrick
Lizette Realty - Lexington KY - Richmond KY - Lexington, KY
Lizette Realty,Lexington KY MLS - Kentucky Homes -

Sounds like a good idea if a broker can afford to hire one. I hope I am working on my last one.

Nov 22, 2008 10:28 AM #2
Rainmaker
238,110
Angelia Garcia
Pure Realtors - Dallas, TX

Hi Kathy,

if you have the time to do it yourself, don't pay someone else.  If it doesn't close then you are out that money. There is always someone out there looking to cling to our apron strings.

Nov 22, 2008 10:38 AM #3
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Pamela Sovich

I know of a credit restoration company in our area who also will negotiate short sales --- he does well at it and charges far less than an attorney and most times he gets the mortgage company to pay his fee...

Nov 22, 2008 10:55 AM #4
Rainer
47,935
Nicole Weidauer
Keller Williams Greater Seattle - Shoreline, WA

I think it MAY depend on your state and it's laws but in Washington, we have facilitators, one in particular, who will handle all of the dealings with the banks and the seller/buyer stuff all for a fee of around $500 (one time fee for the transaction) and then an additional fee for the escrow charges as it will be closing with his escrow company.

This program seems too good to be true- they handle everything and you keep your hands out of the short sale mess- all for a reasonable fee of $500! I have spoken with many agents who have used them and they are more than happy with the results. The sales have closed and the work is done without you having to break a sweat!

The company here is called Galvin Realty Group in North Seattle and Lynnwood. You can look them up on the web and maybe get in contact with them to ask about their particular services to compare and check to see if it's available in your state.

Best of luck with your short sale transactions!!

Kind Regards, Nicole Weidauer

The Egerer & Weidauer Team, Keller Williams Realty North Seattle

Nov 22, 2008 10:57 AM #5
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Pamela Sovich, Prudential Preferred Realty, Pittsburgh

Forgot to add my company!

Nov 22, 2008 10:57 AM #6
Rainer
2,670
Mark W. Miller
Keller Williams San Diego Metro - San Diego, CA

My Broker seems to recall that the California DRE recently ruled on the legality of the use of a transaction facilitator in a short sale.  His recollection was that the facilitator had to be licensed and a party to the listing agreement.

I've not been able to locate any legal references to this on DRE (department of Real Estate) or CAR (California Association of Realtors).  Can anyone shed light on this issue?

Additionally, in the subject transaction, the Seller wants the Agents to split the the fee for the facilitator at 1% of the purchase price.  The use of the facilitator was disclosed in the listing but not the fee percentage.  This seems excessive to me and in addition it seems that if the Seller requires the facilitator then the seller should pay the fee.

Your help is appreciated

Mark W. Miller, Century 21 Horizon, San Diego, CA

Dec 17, 2008 07:23 PM #8
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Rainmaker
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Kathy Wynn

Your Short Sale Specialist
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