HAFA Changes Real Estate Agent Prospecting Protocols

While the times are surely changing, the streamlining of the Short Sale process per HAFA and as similar to the Wachovia Program now adopted by Well Fargo Bank will be changing the way Agents will be finding these Sellers as well as changing the way these Sellers approach the marketplace and find us.

While distressed Sellers have been difficult for many Agents and other vendors to reach in the past, The HAFA component will likely change the way distressed Sellers affiliate with brokerages and other service providers.

There are two issues which will cause a shift in the initial steps of the process. One is that the Distressed Sellers are more likely to be accessible to their Bank because of all the recent press about “cash for keys” types of credits or even cash paid upfront to facilitate a timely sale.

Secondly, Once Agents find that these Sellers are no longer hiding under the house, in the official setting of governmental reprieve, these Sellers will be handed Pre-approved Short Sale commitments that the Seller in turn will be asked to provide to the Agent of their choice. The Pre-approval will have a net figure, theoretically based on the Short Sales Lenders appraisal, cost guidelines and quotas they configure based on these formulas and areas of individual considerations which a property and Borrower may command.

This all equals a severe change from the considered norm. This is a change which is predicted to also change the mindset of most Borrowers turning Seller. So, to further illustrate this in a more captive manner, let us propose the following questions to the experienced Short Sales Agent...

1. When was the last time you remember a distressed Seller ask you where and how often you advertise their home in the newspaper?
2. Have these distressed Seller’s expressed concern about how completive you might be with commission rates or professional fees?
3. When was the last time a distressed Seller asked you how many homes have you sold in my neighborhood?

If you are an experienced Agent and have listed many a Distressed Property, chances are that you have never heard Sellers have these types of concerns. These concerns are usually associated with a Seller who may have considerable equity in their property. At the very least, they are the concerns one may have while being focused on and invested in the process.

For the most part, this focus and clarity of purpose has been missing for the majority of Agents dealing with distressed Sellers. We have gotten use to dealing with these situations in a manner which we place double attention of enrolling their cooperation and fighting them to ultimately affect a complete hardship package to accompany a purchase agreement.

This recent addition of HAFA on the initial steps a distressed Seller will be prompted is likely to change the entire mindset they will take toward choosing an Agent to represent the Short Sale of their property. With this key, Real Estate Agents will have to step up their prospecting game and be prepared to face the uncommon prospect of having to show their wares like we have with the more traditional equity Seller.

Copyright © Bryan Ridgley

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