South Florida Real Estate and...

HI KAT!

I cannot understand why an agent would run their business that way.  We are in the people-helping business and they clearly did not do that.  I wouldn't treat my client w/anything less that what is their best interest.  Duh, I don't even know how!  I agree, why in the world take the listing if she/he didn't want to do the work?

Yvette- I could not believe this story! It was true though as I had hoped it was not. The mls listing of this house when she did have it listed was irresponsible to say the least. And to thing this lady could lose her house over this total disregard for professionalism. Why even take the listing in the first place!

Katerina- Forget short sales. 

* No agreed to listing price
* No copy of listing agreement
* No pictures 
* No CMA
* Incomplete and incorrect MLS information

It sounds like that agent shouldn't be listing anyone's property.

Can that Agent be held responsible? This is a horrible way to work a deal. I have to admit that Countrywide is not always easy to deal with but they do give you a list of everything that is needed. Selling a home below 50% of the market value would never be in Countrywide interest. I wonder if there was some strange conection between the Agent and the Buyer at this point. Sounds like someone might have been trying to get a deal to turn around and flip while taking advantage of a bad situation.

I promise I wont list a Short Sale!  I promise you until recently I had never heard of a Real Estate short sale.

You see we dont have such a beast here in Canada, repossesions go to a court ordered sale which is done through the normal Real Estate channels as if the property was any other.  If the bank is short after the sale they are usually reimbursed from the equity or if there is no equity then the mortgage insurance, which the home owner would have been compelled to purchase when they originally made the purchase because they were high ratio mortagees, covers the difference to the lender.

Katerina-as a Buyers' Agent, I cringe when my clients want to put an offer in on someones elses (not yours and Nestors) short sale listing. At least, working with you both, I have learned the right questions to ask the listing agent to figure out where in the process they are so I can give my buyer a better understanding of the time process. Hopefully, going forward, the lenders will become more efficient, also. I heard somewhere that Countrywide had over 70,000 short sales! OUCH!

I've said it before and I'll say it again.

The biggest barrier to short sale listings is short sale listing agents who do not know what they're doing.

If Countrywide were no longer doing short sales, half of the short sales listed in our MLS wouldn't exist. 

Good luck with this consumer.  If anyone can do it. . . . . . . .

Katerina,

Did this agent really want to sell this property?  Doesn't sound like the agent did anything but cause grief and frustration.  I personally wouldn't use this agent to market anything for me.

I know you'll be able to help this mom out.  :-)

Katerina,

Are agents taking the business thinking that it is a piece of cake and they are not going to have to work at getting the home sold?  This is a great example of knowing what you are doing before getting started.

Katerina, Unqualified agents is by far the biggest issue with short sales right now. I even see people teaching short sales that don't know what they are talking about!!!! Short sales are going to be a major part of the real estate business for years to come. It is imperative that folks learn how to do them. I'm sure you will be able to help this lady out.

I have an excellent client that is being forced into short sale on one of his properties, and so before we did anything my father & I have spent close to a week researching all the stuff.

Great points Katerina.  Agents who don't know a particular market or type of sale should not enter into representation agreements without having an experienced mentor.  I won't do commercial real estate for this reason.  I would prefer to refer or have a good model for a new type of listing or buyer client.  Many agents today unfortunately are so desperate that they "jump on" anything that moves.  It is not doing the client any good and will in the end make the agent look bad. 

Katerina - pretty pathetic. Someone who operates that way should not be doing any listings, short sale or otherwise. Countrywide is doing tons of short sales, and hopefully under BOA will get better and faster at them.

Jeff

Katerina sounds like this agent was a real gem. Never mind a short sale sometimes I am amazed at the agent selection process in general. It seems that on many occasions a seller will just interview one person and sign on the dotted line without doing any home work what so ever.

Katerina, Like the others, I can't believe how little this agent did and still had the listing?  Did the seller actually sign paperwork.  Suppose that's immaterial now, I hope you are able to help this lady so she doesn't have to pay for the mistakes of an unethical, uninformed "Realtor."  That person shouldn't have a license!!

Katerina, this is just another FINE example that it's too easy to get a Real Estate liscence. One of the big problems I see with this particular case is that no one is reporting the agent to the Board of Realtors. When more agents are brought before the ethics committess, some of this will stop!

No kidding! It's amazingly sad how many clients are being "advised" by uneducated agents. In every market, a buyer and seller need competant representation, but never more so than right now when things are so tenuous.

Wow,

   Thanks for this blog! It's good to read about someone else's mistakes and make sure to avoid them myself!

        I would report that realtor for sure!

Katerina, sounds like this agent shouldn't be listing anything. Sounds like she should be selling shoes at Macy's.

We have entered a period where true professionals will rise to the occasion.

There are companies that will do it for you and still pay you a nice referral fee. I would put trust in someone that handles these regularly than try to hack it out myself.

jared.pro

Katerina, we see this same thing....so many agents don't know how to do the short sales. I always share my techniques and each agent I talk with I tell them where I got my training and how it can get done. I am trying to help other agents get it done.....it is the best for all concerned. Great post!

This makes no sense, what was that agent thinking?  I agree, short sales are problematic, and usually a nightmare.  More than ever a seller needs someone who knows what they're doing!

That's terrible. Most of the things that agent did would be illegal (not giving the seller a copy of the listing agreement). I live in attorney state, and it just so happens that my favorite & personal attorney is very good with short sales & I get him involved as soon as possible.

Nestor/Katerina -

Why did this agent get the listing?

I'd betcha (sorry, I don't even know Sarah Palin) she was a "girlfriend" of the buyer, and "all agents are alike, aren't they?"

This is a big problem here - agents don't know the process, and the sellers attorneys know a bit more, but are too busy doing "paying" business to truly advocate their clients.

You've got to have all the details straight, be patient, and be persistent - and few agents are, unfortunately.

Very frustrating, especially in this market.

DEAN & DEAN'S TEAM CHICAGO

Having all the ducks lined up in a row is crucial to getting the short-sale done. Dealing with lenders that are in agreement to taking a loss is also somewhat frustrating. There should be definite guidelines as to setting a list price on these short sales.

I've seen so many that are obscenely low- making it very difficult to get approved and destroying the "real" sellers ability to sell and making it look like the rel estate market is crumbling worse than anything else.

Sunny Isles Beach • Aventura

Katerina, this is a very valid rant about an agent's behavior that is unexplainable and not helpful to the homeowner AT ALL.

I am hopping you had a nice talk with that agent. Or at least let her broker know

How irresponsible is that?

In WA state we just had a new law Distressed Home Owner Consultant it was created to protect consumers from a lot of scams. But in the end no agents wants to list them due to liability. Which I guess is a good thing, because only true pros' are doing them now

I guess I would have to ask; where is the Principal Broker in all this? If I did something like that I'd be skinned alive. Don't we have managers to oversee what we're doing? There is a trick to short sales to be sure, whren in doubt ask someone who knows. There is a short sale company here in Portland Or. that is fantastic..... Civic Realty! I strongly suggest that any agent do their homework before taking on a short sale - yes?  

It's sad someone would take advantage of a situation like that. Please report that to your local board office.

Great post. However, I can't believe that any consumer is that naive! How do you not know what your house is listed for? C'mon!

Also I would add, in todays situation, do not be afraid to ask your home seller if they are in trouble, upside down, how many months behind, have they had foreclosure notices. There is no point to listing a home and finding out in 3 weeks your home has been sold by the Sherrif. This is a waste of your time, money and effort and all because you assumed all was OK. Yes I know agents who have done this and they look so bemused.

Sounds like agent "malpractice" to me.  I bet her broker didn't even know what she was up to.  I require all my agents to sit down with me BEFORE they list a home and discuss the comps and reasons for pricing the home at $XX.  Often times, this results in the agent feeling better about the pricing (and makes them negotiate as an advocate of the seller).

Short sales are very dangerous in the hands of a careless agent.  REOs are even more dangerous. (See my blog Brokers - Does Your E&O Policy Cover REOs?).

I think that State Boards are going to have to get stricter on this - Lenders should only accept listings from pre-certified agents.  The state licensing exams and real estate schools should also address this in their testing and CPE requirements.

What do you think?

Sounds to me that the agent was extremely sloppy all the way around!  I am certain this is happening more than we even know and it is extremely upsetting as to how it reflects on others that actually do know what they are doing.  I see many short sale listings that are what I call "FAIRY TALES" with fairy tale pricing.  It is a complete shame that some owners are not being properly represented.  Thank you for the information.  Make it a great day!

I'm so upset! Just had a short sell fall through because Wells Fargo took two week to give me a response back on if they would accept an 86,000 CASH offer when the listing was 97,000.  They finally let me know they accepted but then it was to late because the buyers had already withdrawn there offer and reduced it to 80,000 due to no response!  I worked so hard on that and now Wells Fargo told me it was too late and it was going to foreclosure.  I brought them four offers on that property from either myself or other agents and somehow they all wouldn't work out because of financing or lack of communication from Wells Fargo. 

Jeffrey Dillon

Oh you're so right, but I love the idea that when the market changes everyone become an expert. That reminds me I need to get out my first time buyer expert buttons or maybe it will the senior experts time.

There are so many agents "doing" short sales who are without a clue, that it's not funny. Never was...

It's a shame the agent left the homeowner high and dry.

Rich

Charlotte NC

So true, we talk to people like this woman everyday unfortunately. No one should be taking on business that they do not understand.

And this is exactly WHY the banks have such a time in their short sale/loss mit department. They get incomplete package with unrealistic values. Thats why when the agents with the complete packages and knowledge of market values send in requests we are successful (once we get to the right person). Some agents/consumers just don't 'get' it.

Another example of a so called "agent " doing a dis-service to the consumer. Glad she now is working with a Pro.

Hi Katerina!  You said it all with your title!  Believe me, if I do run into that, you'll be the FIRST person I call!

Oh my -- why do some people say they are agents. This was a disservice to the poor lady.

Kat,

The good news is if it was not for bad agents, there would not be the good agents !  They really make us look good... the bad news is that these agents make a bad name for "realtors" as a whole.  That agent was so negligent he/she should be fined or something.  In any event, I am glad the clients are now in good hands !  Good luck with their property !  ~ Chris

Another Good Post -

Agents need to either know what they are doing or hand it off to someone who does.  What is most prevalent is that Agents are desperate for a listing they can sell - so they take anything, including something as time consuming as a short sale listing - yet they lack the special knowledge (anyone that thinks a short sale procedure is "logical" is in the wrong boat) to get one done correctly and efficiently and professionally.

Looking at what the agent did, it wasn't that she didn't know about short sales (which she apparently didn't), but that she was a crappy agent.  I don't do short sales because I don't want to take the time to thoroughly learn them... and so I refer them out. 

But too many agents seem to think that a class makes them an expert.

Wow!..and Realtors wonder why they get a bad rap.

The sad reality is that most realtors are not properly trained, are trained by unsucessful agents, or have a poor work ethic.  I am continuously amazed to find out that some of the top agencies in our area have hired sub-par agents to manage, recruit or train for their businesses.

Short Sales require constant contact with the lender, as well as, the homeowner.  If the agent is unwilling to do the work, they should step aside and let an experienced agent handle the sale.  It may a difference for the homeowner.  Time is not always on the homeowners side.  In order to avoid foreclosure, the listing must be handled properly.

Sincerely,

Marty Remo

http://www.RemoRealty.com

Hi Katerina - you are so right about not doing short sales unless you really REALLY know how to do them.  I have a listing right now that's a short sale and I brought in another agent in my office who specializes in them.  He has all the right contacts, knows how to get to those he hasn't already cultivated, and if I hadn't brought him in to work with me on this, we definitely would not be closing Monday morning.  Great advice for those thinking about working short sales!

Ann

I didn't read your article.... I just spit on my monitor from the title..... BWAHAHAHAH!!!!

Amen! Some of these short sales on the MLS are clearly just headed for foreclosure...and it's a disservice for the seller.

Oh my Gosh EVERYONE! What a Surprise to find this a featured post with my favorite gold star shining brightly! All morning we were hussling to get offers processed and listings in the system to our listing manager and our short sale assistant. Then it was a full afternoon of getting ready for our trunk or treat tonight, had to go get Tristan's Star War costume at ToyRUs, candy, decorations, etc. We had a fun Trunk or Treat tonight. I just got back in and came to make comments on Active Rain and here we are! WOW!

I will go through your comments tomorrow and those of you that have questions I will address those.

I am very thankful for all of your comments. Each and everyone of them means something to me. And I thank you! Katerina

Jared- These companies you are talking about are not any better than the agents are. I can not begin to tell you how incompentant most of them are and more unethical than this agent. This is a subject for a post and I will get to that hope by next week. Long story short- we just had to pass laws in Florida to help stop some of these 'short sale companies' from ripping off the homeowners.
I would never hire one of them unless I can verify their track record, see their closing ratios and then talk to their customers randomly!

Weichert Realtors Synergy-  I don't agtee that you should be certified. Nestor and I are not certified in short sales and have been doing them since 1995. We get our short sales approved and get them closed. I can teach this stuff blindfolded and I am not certified. I coach other agents around the country in doing short sales and they are successfully doing them.

And I have been to these so called short sale trainings and they have just as much misinformation as this seller received from her agent.

I do think the basics of short selling should be addressed in real estate licensing courses and on the state exam. Katerina

I think people are making desperate actions they may not have made before.  That does not make it right, please don't get me wrong.  I recently was asked to list a short sale property and decided to bring in an agent with short sale experience to co-list the property with me.  I wanted to learn - and believe me, there's a lot to learn.  We better know what we're doing because short sales and foreclosures are forecasted to be 30% of the 2009 transactions (thats what I recently heard).  Yikes.

WOW Everyone! As I have been reading your comments about 3 or 4 new posts popped in my head! I am running to write them down right now! Thanks! You guys are awesome, keep them coming!

WOW!  How did that agent get the listing to begin with...floor call?  Let's hope that agent decided to get a job at the local mall!  Just heard this afternoon that 1/3 of the listings will be short sales and foreclosures.  We need agents who know what they are doing.   These sellers deserve an experienced agent.

Jeffrey Dillon- Wells Fargo is the worst and all I have to say is that because of their absolute idiotic turning down of good offers and insisting that deficiencies get paid off- they better not even breathe the words, BAIL OUT! WSFG is the WORST!!!!!! We also just lost a good buyer on a short sale with them. I am sorry this happened to you. Our next step is going up the ladder to the top. I am serious, write to your congressman and your Senator, CC the upper management of Wells Fargo!

Katerina - I couldn't agree with you more... I have a buyer closing with Countrywide on Tuesday...  It will be day 88... Not bad in the grand scheme of things.

Katerina - I smell an Ethics Complaint for this Realtor - hopefully this agent is not in Real Estate anylonger.

Short Sales are going to be here for awhile, and on the other side of the coin, putting in offers on short sales for your buyers.  I had a buyer where we lost 4 offers on four different properties because the agents did not know what they were doing.  My buyer wanted one of the  houses so bad, she paid for an appraisal and that was our offer, and the selling agent said it was not accepted. I feel a lawsuit will be coming soon. 

Thank goodness they found you & Nestor.  It sounds like the first agent could use a lesson or two in representation. 

OK...so what good resorces are out there to learn about working with short sales (other than  the random junk mail for internet training)?

Sounds like that agent wants to be a not for profit agent.

I refer most of them out.  I do know how to do them but prefer not to.  I would rather have a good, quality lead go through the ranks of an agent's system who is highly successful at these.

Thanks for saying it, Katerina!

On the other end of it as a listing agent, I have ran into a bunch of buyer's agents who have never taken a short sale class and I have to tell them what forms to use or what to put into the contract to protect their buyer. Whether you're a listing agent or a buyer's agent, if you don't educate yourself, you do a disservice to your clients. To think you won't run across a short sale is crazy in this market. 

Peta, thank you for taking the time to comment, have a great week.

Wendy, you are welcome, thanks for commenting, we appreciate it very much!

AMEN!! I also hear horror stories from Sellers about their previous agents. I was hoping the current slow real estate market would weed out the bad ones, but I guess some are still hanging around!!!

Hey guys,

I can help your investors with financing if they are interested in buying shortsales and flipping them to an end buyer. My private REIT has unlimited funds to fund these types of transactions. The REIT will provide funds for initial purchase, and also to the end buyer, so the investor can earn full spreads and avoid seasoning required by ALL conventional banks.

If you are intersted I would love to work with you. You can also check out my blog at:

http://activerain.com/blogsview/782441/We-provide-FUNDS-for-END-BUYER-on-Short-Sales-NO-SEASONING-earn-FULL-SPREADS

Josh David (JD)

704.998.7609

josh@josh-david.com

I agree with comments - Her level of service STINKS - short sale or NOT!

Katerina, I got a short sale listing yesterday and the sellers are NOT behind in payments YET -They both lost their jobs - and probably could drain savings to make payments for 2 or 3 more months - they want out so they can get into a rental but are NOT behind YET - Will the lender look at their situation?

Short Sales are not rocket science! They are just a pain in the ARS! Realtionship with the servicers are not as important as people will lead you to believe. The turn over is to great to establish long term realtionships. The key is to have reputation that your sales will close...

I use NORTH WEST LOSS MITIGATION SERVICES LLC. to negotiate and facilitate all my Short Sale's because they understand each and every aspect of the transaction from title issues to the buyers's financing eligibility. NWLMS is not an investor or a want to be, NWLMS is not an Escrow company, Mortgage Broker or Real Astate Agent trying to capture your listing or suplement their income. North West Loss Mitigation Service's is a third party negotiator where negotating short sales is all they do.

I have closed over a dozen Short Sales this year. I will close another three to six by the end of the year. North West Loss Mitigation Services get's them done!!! 

visit nwlossmitigation.com