Keeping the lender out of your Short Sale

Keeping the lender out of your Short Sale will increase your closing ratios and decrease your frustration & anxiety!



By Spickes • October 28th, 2009

In today’s market, most Realtors are under the perception that lenders have majority control over their Short Sales. In fact, after verbally surveying over 500 Realtors at the 2008 and 2009 NAR Conference, most think they only have 0-20% control over the outcome of their Short Sale transactions, giving majority control to the lenders, their customer service and loss mitigation reps. When we talk about “control”, what does this mean?






First of all, the turnover in the lending industry, particularly loss mitigation, is astonishing at the moment. Furthermore, it is extremely rare to find a loss mitigation or customer service rep that holds a real estate license. Let’s be very clear on this point. What the Listing or Buyer’s Agent is responsible for in the Short Sale is completely separate of what the lenders are required to do, and require a completely different set of specialized skills. One of the few reasons why a lender is involved in a Short Sale is to consider and approve a purchase contract that a Listing Agent has procured, because it nets the lender something less than the full amount owed. The lender doesn’t have the ability to tell you, the Listing Agent, when to go active on MLS, based on the type of loan. In most cases, neither the specific loss mitigation rep, or the Agent know the specific and unique difference in working a Short Sale for a FHA, VA, and a Conventional loan. When the listing Agent goes active in MLS to procure an offer solely depends on the type of loan the Seller has in a Short Sale. If most Agents don’t know this, then how in the heck would a customer or loss mitigation rep know this? Due to the fact that most real estate agents have had a limited amount of Short Sale education and training, who are most agents relying on to tell them what to do next in the Short Sale? If you’re saying the lender, that’s absolutely correct… and this is presenting significant issues and dilemmas. If you are relying on the lender to tell you what they need, phone call after phone call, fax after fax, and you don’t already know what is required by each individual lender, including their specific addendums, PRIOR to getting them involved, you must know that there is a lot more to learn about Short Sales.






The degree to which you can keep the lender out of your Short Sale transaction is only going to increase your closing ratios and decrease your anxiety, frustration, and any unnecessary obstacles typically experienced by most Realtors in their Short Sale transactions today.






Shifting your paradigm for which you process your Short Sales is essential and necessary. After attending the CDRS Certification Program, Realtors, even those with other Short Sale certifications, say that they had no idea there was so much more to learn about the Short Sale process and that there is a completely different and intelligent way of working these seemingly complex transactions. If you haven’t been through the CDRS Program, trust the many other Realtors going through this program… you don’t have the entire picture, even if you think you do! Please don’t be foolish in thinking you’ve had enough Short Sale education! In truth, most Agents don’t know what they don’t know. Watch recent Video Testimonials.






Remember, you are the quarterback of the Short Sale transaction, not the lender.






Knowledge is powerful! Until next time, we wish you the best of luck in your Short Sale business.