The Scariest Part Of The Short Sale Business
http://kevinandfred.com/power-hour/guidelines/
Kevin and Fred are asking for your input. Don’t let them down. What is the scariest part of the short sale business for you? What is it that you would like to see changed is this crazy short sale world
HOW TO CLOSE AT LEAST 3 DEALS IN THE NEXT 90 DAYS
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About the Authors
Kevin Kauffman & Fred Weaver
Kevin and Fred the founders of Group 46:10. Over the last 10 years Kevin and Fred, and their team have closed tens of millions in real estate all over the country and have created some of the best training for agents in the market. Kevin and Fred are also highly sought after teachers whose work has helped agents all over the country build their own next level real estate business.
Create a “carmax” mentality- show the sticker price and mean it- work with us by sharing information and not witholding from us- I swear I started typing this before you started your idea Fred- Im with you buddy!
Great Idea Aimee – Thanks for your comment
Glad you clarified – outside of the government. I agree with what Fred says – standardized deficiencies across the state.
Standardize the short sale process across all banks for Fannie Mae/Freddie Mac with more clear guidelines>
Kevin – I agree with you also.
You guys have some great ideas. Crush it !!!!
Scariest part is knowing who to escalate to next – getting the person inside the servicer or investor that can execute a decision.
I agree with the need for clearer guidelines and up-front pricing where the investor considers the actual listing history of the home. #1 reason why our properties fail to close is that the real fair market value is less than what they’ve been told by some agent being paid $50 for their opinion. Quite frankly, the banks deserve a refund because they’re overpaying.
I would love for all of us to be able to share our information – the seller, agent, negotiator, mi company, investor, etc. Equator is far from perfect; however I feel it is a great way for us to be able to upload documents (eliminating faxes, trees killed, and the endless abyss) and see where each file is in the process. More banks need to use the online, streamlined systems.
Fred, I love the idea of having everyone accept ONE appraisal!
Hi guys, I am seeing a wave of last minute counters by the banks after a 4 month process. The result is the buyers are walking away without countering back to the bank. One the comments above about the banks, MI and investor getting on board with a price upfront that they are willing to accept, as well as the ideas you put forth would greatly help all of us in the short sale business.
The problem is buyers seem to want the deal of the decade and in regular transactions they are fickle in negotiations if they don’t get their price. No wonder they walk away from the frustration of lonnnnnng short sales, not knowing the outcome on the offer price. The key is to make the short sale transaction shorter with all the above elements mentions pertaining to a more open process. Yes, Kevin-the banks need to stop playing their cards close to the vest. If they want to act like a seller- how about a MOTIVATED seller and get these deals done. I understand we are in a shifting market and I don’t mean the wam bam fast deals we had in the sellers market. I would be happy with a 60 day process…seriously.
Hey Kevin and Fred — I’ve been learning a lot by watching your videos, since December 2009. It’s a regular part of my day, to check in and hear what you guys say 5 times a week — thanks for all the great info, and for the laughs especially.
I’m not a realtor, or in the banking industry. I’m a homeowner who lost my life savings in a house, and now I’m just trying to get a short sale approved, so I can live the rest of my life in peace. There’s nothing like a monkey on your back to make your life miserable, and this is “what’s scary” which is your topic today. I didn’t buy beyond my means, or put nothing down, or have bad credit — quite the opposite of all those things — I just had terrible timing in real estate, and am trying to do the right thing in getting a new owner for this perfectly good, simple, clean home.
So your topic today is “what’s scary” about short sales. Hmmmmmm……..well, what’s scary for homeowners is being in complete limbo for months at a time, having unqualified ‘buyers’ traipsing through your home and rifling through personal belongings, having banks take forever to decide anything even though you’ve given them everything 100 times over…..I could go on and on. Guess I’m just looking for a shout-out to homeowners who are ready, willing, and able to do everything necessary to do a short sale, and are more than willing to have everybody make their commissions, and new buyers to get the steal-of-a-century, and the banks to get off by saving $50,000 over a foreclosure — the homeowner doesn’t win, except to be able to leave the neighborhood in good form, and have a nice new family move in, so the previous homeowner’s name isn’t MUD by just walking away from the property. And it’s not about saving our precious credit ratings which are already shot. It’s about being able to leave with a sense that we did the right thing.
So keep up the work you’re doing, and the efforts you’re making to convince lenders to approve short sales. Let’s hope that things turn out for the best. Usually, there’s a reason that things happen, though I haven’t quite figured out what good has come from me going this terrible experience — about the only I’ve learned for sure is, don’t buy property again, unless you’re paying cash for it.
Take care guys, and I’ll watch for your Labor Day video for sure.
Thanks,
Betty
The scariest part is working on a short sale where the bank refuses to supply any email address for negotiators, or any other key people that you need to speak to in a short sale in that bank.
Where negotiators never, ever, ever answer their phones, and even if their voice mail boxes are not completely full, still never, ever, ever return a phone message. And the most annoyingly scary of all are the banks where their complete phone systems seem to be down for days and days on end, like for the entire time that the short sale is being processed. Oh wait…..I’m pretty sure all of these scary things happen at the same bank.
The negotiators surely don’t want to have to talk to one of us, because they couldn’t actually negotiate their way out of a brown paper bag if we ever got to talk to them on the phone. Now that’s SCARY!
Solutions Saturday – love it! Great idea, first short sales… then world hunger. Seriously, the need to be on the same page with the same access to information as our lenders is key. Keep up the great work!
This is not a complaint, as our value is greater, the harder the process is because the harder it is the less agents will be able to successfully close short sales. A couple things:
1. Every bank have an online management system that allows the agent to have access to where everyone can see timelines for the entire process, which would hold people accountable.
2. Standardized deficiency language, that is still beneficial for the homeowner to pursue a short sale vs foreclosure.
3. As stated in the video, a bpo that is visible to all parties and a lot more disputable. One problem with BPO’s, there is too much weight in them, especially in a depreciating market.
4. Standard MI and subordinate lien guidelines.
I would just like the bank to know that we are doing them a favor. They should treat us like teammates, instead of enemies. The more they work with us the better the net would be to them…
I made a video to respond to your question, took it further what is the thing I am sick of and want changed in todays real estate market in general. But it really is the same thing. I am sick and tired of having my time wasted.
http://www.youtube.com/watch?v=I5GdU-V2JoU
My scariest part of short sales is as. Being a buyers agent and leaving everything up to the listing agent. I just want to get on the phone myself and crush it!