Rule Number 7 of the NEW SCHOOL Short Sale Specialist

STOP WORKING BACKWARDS! In the ‘Old School”, the value we place on the table for in the Buyer is the Pre-approved for their loan. Just like the traditional sale, we want to see a letter on Mortgage Company or Bank stationary. The savvy Agent will also ask for supporting bank or financial statements showing the liquidity of their down payment and closing costs. Other than this, in a Short Sale, in 98% of cases, that is the extent of the Buyers performance until the Sellers bank approves the sale. Obviously, we know that if a series of months have sailed by, the chances of that first Buyer being around to perform at that time has proven over and over to be less than 10 percent.

We know the exhaustive amount of work we put in to these as Listing Agents at every level on the playing field. It makes little difference if we turn these over to a 3rd party negotiation service or not. The best of us still have to place time and attention into the marketing, offer presentations and initial packaging for the 3rd party negotiator.

In the “New School”, we assure every security to our Seller Client that we would in the Traditional sale. The majority of State has laws that govern the actions and fiduciary guidelines under the same Business and Professional codes which apply to Attorneys, Trustees and Doctors. It has always challenged my comprehension of sociological trends in human behavior that in the case of the Real Estate Profession, the State acknowledges our competence as a profession as the assumption, while we live daily through the myriad of negative pre-assessments of a pubic that compares our profession to used car salesman.

In the case of working the Short Sale arena over the last 3 years, coupled with the number of calls I have engaged with bank Underwriters, the number one chasm between us, is this non performing Buyer issue which needs to be dealt with if we are to become optimally leveraged. We need to shift our own ‘mindset’ and realize at least this one point and what it equals.

We know that banks are plagued daily with thousands of new case files. These again have to be sifted, sorted and prioritized in some order either be a measure of urgency or first cursory qualifier. This means that when 100 offers have come into the system, in the ‘Old School’ there is only 2% of them that will pass the urgency test. This EQUALS 98 out of 100 of these offers are either strategic default of have non performing Buyers (no skin in the deal). Unfortunately, the majority of complaints extend from the ‘Old School'. They are about the length of time passing, the buyers flaking out, the Sellers Agent doesn’t know what they’re doing, undiscovered or non-disclosed liens and the negative perceptions and challenges of a distressed economy. This equals 2% or 2 out of a hundred submissions that will pass the test of the “New School”. Stop working backwards!

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