Lets do a poll here
Casting your vote below can be as easy as saying below "We prefer to use outside companies to negotiate our short sales" or "Heck no, we do it ourselves or have an assistant or designated person in the office negotiate them".
Most of you know my personal stance for The Short Sale Specialist Network, and that we require all of OUR referrals to be worked in house, but MOST of the people on this forum do NOT receive listing assignments from us! I want to hear what YOU prefer to do with you short sale files, and for agents who DO receive listings from us, what do you do with your other files??
***Update 9/1/11 - I was at the REO Expo in Dallas a few months ago. An agent asked a panel this same question. I watched David Sunlin (Loss Mit Pres. for BOA) say "An agent should NEVER, EVER use a 3rd party company to negotiate their short sales". I then watched the head of Loss Mit for CITI and the department head for Freddie Mac who were sitting next to him both shake firmly their heads YES in agreement. Regardless of what the 3rd party negotiation companies say, or what would now appear to be only a small percentage of agents say, 3rd party negotiations aren't needed or wanted in the transactions.
Here are some video testimonials for our Short Sale Lead Machine websites from just a few of the agents who are utilizing them! More coming soon...
LOL Ben. A better analogy would be "Would you let a surgeon repair your Ferrari." Short sales and real estate transactions are two completely separate animals. Yes, one has something to do with the other, but it's like mortgage lending. Just because you are an agent doesn't mean you are qualified to originate mortgages. I have always said: Short sales are lending issues, NOT real estate issues, and unless you have specific training or experience, you cannot have the qualifications to do both.
There is a reason why the national average of agent led short sale success is 23%
And you and I can both spot the short sale listing of someone who has no clue, usually from what is missing in the private remarks. Will the real estate ranks thin out when all these agents are sued by the first lawyer smart enough to approach a homeowner who lost his home with, 'I think your foreclosure was partially the fault of the incompetent RE agent. If he couldn't even properly protect his own interests..'
It isn't law hear yet Brenda, but our Company did hire me and another person to head up "short sale" transactions to make sure qualified people were taking care of the transactions. I try to keep about the same but can handle a few more with my partner.
We do our own and have more in control. Our stance - the more people involved the more chance of a mistake.
I negotiate my own short sales. While representing buyers I have run across a few 3rd party short sale negotiators hired by either the seller or the listing agent and found them to be nothing more than recyclers of what the bank told them rather than problem solvers. For example, if a bank counters an offer at $100K it does not mean, necessarily, that the buyer must pay $100K to get the house (sometimes they can get it for less and sometimes (due to junior liens) the price actually needs to be higher). The 3rd party negotiators I encountered did not want to expend any effort on this and they just wanted the buyer to pay up. It is always easier when it is someone else's money.
I tried a 3rd party company once and it was a bad experience. I negotiate all my own short sales and 90% of them close. I feel that the lender want to net a much as possible from the sale and when an agent add a third party company to the deal the money that would go to the 3rd party company can go to the lender.Our goal should be to make a win-win for the buyer, seller and the lender. If we focus on getting the bank to net as much as possible and getiing the buyer a deal on a nice home, we would not consider a 3rd party.
In house totally. I took the time to learn and become an expert so that I could answer whatever question the distressed sellers have. I have actually met several homeowners that had an agent who used a negotiating service and any question the sellers had to the agent they were referred to speak to someone they had never met, had never been to the property and was given all their personal confidential information... they were not pleased until they enlisted in my service. I am sure there are plenty of good negotiating services out there, but this is not how I run my full service business.
I am a little bit of a control freak, I do it all myself.
Plus I love hitting the banks hard
I sent one and only one to an outside agency, I felt there was even less communication from the 3rd party than when I do it myself with the bank, plus I had to send in ALL the same paperwork & even more to them, so it did not necessarily cut down on my work. I was on the phones with the negotiators as much as I had been with the banks & now I was faxing and emailing even more paperwork... there was absolutely no point in hiring a 3rd party.... oh and did I say I love hitting the banks hard!
Kenneth, how are you seeting up your Short-Sale Processing fee's so they get approved, can you send me a sample of anything you might have: firstname.lastname@example.org , any info would be helpful.
I use a 3rd party - a law firm. I hire them and they do all the negotiation, processing, etc. They can and do file a TRO to stop the sale and keep the lender on their toes. Plus, they take away any of the implied risk of a "practicing law without a license"
that may accompany negotiating a debt instrument vs. a property transaction.
Chuck, I said I don't use 3rd parties but actually after reading your post I do as well use a lawyer who is wonderful and helping with judgments, lost liens, finding divorce papers etc He keeps me out of practicing law of any kind as well.
Part of my short sale listing presentation is .... "I'll hire an attorney to negotiate with your lender." As soon as I have the listing agreement the law firm picks up the file, gathers docs, and does ALL of the work on the negotiation side. I get copied on all emails and updated every few days plus any time there is a new development. I'm free to market the property. One of my best business decisions EVER.