Strong words, but check this out. I just came across this post on another forum -
That agent on there literally said - "I received a short sale referral today from a bank. I've never done a short sale before and will partner with a more seasoned short sale agent on this potential listing."
While I can respect and admire that he is at least looking for an agent to partner with and co-list it with, are these banks STUPID! The BEST short sale agents out there are NOT the same agents they assign REO listings to! How long will it take them to realize this reality! How careless are lenders and servicers to actually recommend an agent to a home owner who has never even done a short sale!
Mike Totally believable! I can't believe it either. It's like you have a toothache and instead of going to the dentist, you ask your mechanic to fix your teeth??? Who would do such a thing? Gee why doesn't the bank just say....can we foreclose now? It's hilarious! Yet the banks want an "experienced" agent with past REO sales on record in order to give them REO listings? right? You practically have to give everything but a blood or urine sample, just to get a bank or servicer to give you any REO listings....yet, give an REO listing agent who has NEVER done a short sale a short sale? Well, hell.......no problem right?
AGENTS who have NEVER done a short sale...do NOT understand short sales. YOU know it, I know it, and other SHORT SALE agents who've done short sales....know it. Oh well, doesn't surprise me......
I think the banks should start expecting "short sales" experience, just like REO experience......OH BUT I FORGOT THE MOST IMPORTANT THING>>>>DUHHHHHH!!!! Don't you get it? The reason the banks don't give a rat's a__ about a short sale agent's experience is because the SELLER STILL OWNS the property and if the agent screws it up...it THEN becomes a BANK OWNED PROPERTY...DUH!!!! Of course, once it's a BANK OWNED property, NOW they want to give it to a seasoned veteran with experience....of course, NOW they care...because it's THEIR ASSET that's getting SOLD...
WOW! Makes sense..doesn't it?Now they can treat it like a house with equity, because the BANK want's to sell it for the MOST MONEY NOW!!!!
I've heard the bank can buy it back for a dollar at a FC sale. One of my agents went to the courthouse to try to purchase the property for a client. A bank guy was there and opened the bid for $1. The agent upped the bid to the contract price (i know) of $276K and the bank guy offered $277K. He said, that the opening bids were usually at $1...so if the banks can purchase these properties for sale for a Dollar (!!!) why wouldn't they? Then they have created real equity.
does anyone know if this is true?
Back in 2008 I was on the Orlando Realtor Boards Short Sale Panel. So few Realtors even knew what a short sale was back then. Four years and 100 short sales later and most Realtors I speak with are still in the dark. Continuing education for Realtors in Florida should be mandatory to include basic short sale info. Wish there was a way to kick out all the part timers, and get our business running smoothly.
I just got short sale acceptance in 21 days from Bank of America from contract to approval. (and a check will be coming your way for that one Mike, it was a Short Sale Network referral)
I agree & congrats on your closings!
The bank is probably referring the short sale listing to this agent because they are a member of some sort of referral network that pays the bank some sort of fees. That is the same reason they use selected insurance companies to purchase their forced placement insurance policies even though they could pay a lot less somewhere else.
James: I think you are closer to reality. REO's are given to agents who have a direct (maybe even nepotism) relationship with the bank (manager), and may get paid ( back) in order to use their services. Assigning an REO agent has nothing to do with knowledge, experience or even integrity. I just had a short sale by Bof A refused although there were four offers on the property. Bof A could never explain why, so just to try this, I asked to be the REO agent as I know the property better than anyone else. Answer: it will go the the assigned REO agent.
Unbelievable! Had to laugh when I read the title to this post, LOL!!! There is so much inefficiency in these banks today, it simply amazes me.
The banks assign REO listings to agents with no REO experience and lack of experience in real estate
in sales, listings, etc. Not a shock that the banks are assigning short sales to agent with lack of short sale experience.
A short sale though is not that complicated to get approved as a REO listing.
Sheyenne, Well said, period!
It's not that banks are retarded, Machievellian is more like it.
Lenders refer shortsales to inexperienced brokers because these brokers are more easily manipulated in the process than a broker who has been to the rodeo once or twice.
More retarded is a seller who would accept a broker reffered by his lender. The lender was once the seller's ally but now, once the seller is in default, the lender has become the seller's adversary.
The lender will likely have their approved broker go through the motions the lender dictates to create the perception that all parties are working towards a short sale when in reality the lender sees this as a means of property preservation and reducing their expenses in the pre-foreclosure period. The asset they gain at the foreclosure sale will have been better maintained and cared for by the owner the lender has been deceiving and the broker with the short sale listing will get the REO listing as a reward for playing along with the lender's scheme.
In Colorado the Real Estate Commission tries to regulate the competency of brokers:
CP-41 Commission Position on Competency (December 6, 2011)
Pursuant to sections 12-61-804, 12-61-805 and 12-61-807, C.R.S. , which are the laws that govern the duties of a real estate broker acting in the capacity of a single agent or transaction broker, real estate brokers are required to perform the terms of written or oral agreements they make with certain parties to a real estate transaction. Pursuant to sections 12-61-804 and 12-61-805, C.R.S., real estate brokers acting in the capacity of a single agent have a duty to promote the interests of their clients with the utmost good faith, loyalty, and fidelity. Pursuant to section 12-61-113(1)(n), C.R.S., it is a violation of the license law if a licensee demonstrates unworthiness or incompetency to act as a real estate broker by conducting business in such a manner as to endanger the interest of the public.
Prior to performing any acts that require a real estate broker’s license, a broker should determine whether he or she possesses the knowledge, experience, and/or training necessary to perform the terms of the transaction and maintain compliance with the applicable federal, state or local laws, rules, regulations, or ordinances. If the broker does not have the requisite knowledge, experience and/or training necessary to consummate the terms of the agreement, the broker should either decline to provide brokerage services or seek the assistance of another real estate broker who does have the necessary experience, training, and/or knowledge. The Commission will have grounds to discipline a broker’s license if a broker fails to take the measures necessary to gain competence and violations of the license law are substantiated.
This was published late last year in response to a multitude of complaints regarding short sales. Now, for this to have any effect, incompetent brokers must be identified by the public or their peers.
In Colorado a person must participate in 40 hours of training and pass a test to receive a brokers license. To become a barber, a person must participate in 60 hours of training and pass a test. So being a barber must be 50% more complicated at the entry level than being a real estate broker.
Nearly exclusively, I am a listing broker and deal with many short sales. There are many buyers agents who I will not accept contracts from because of their lack of competency, I use a showing service and have these agents banned from showing my properties so it doesn't waste my time. One in particular, filed a complaint against me with the real estate commission because I didn't tell her when the short sale was approved so her buyer could make an offer. She simply refused to accept the fact that, as I told her, she should prepare and submit an offer to establish and maintain her buyers position of interest in the property. She refused to accept the fact that an offer would be submitted to the lender for short sale approval and that if it wasn't her buyer's offer the likelihood of her buyer acquiring the property was non-existent. This woman has been a successful, professional and respected broker for nearly 30 years but refuses to educate herself about the short sale process and, unfortunately, should be banned from participating in short sale transactions until such time as she demonstrates competency in short sale transactions.
Yes, the lenders are manipulative and devious in many of their tactics and protocols but this is simply the result of so many inexperienced and incompetent brokers attempting transactions they have no business being involved in. Lenders will absolutely take advantage of them and their inexperience. The lenders do not want to deal with experienced, seasoned short sale brokers. They miss the point that by dealing with seasoned professionals, the lenders could dispose of their distressed properties more efficiently and generally for a greater return.
Great answer Mark. I have been saying here in CA that the problem starts with the NAR/CAR. They allow the bar to be so low for any person to become an agent. It is as you say, ridiculously low to enter the real estate profession, but understand that the CAR/NAR gets paid on the number of bodies, not the number of "qualified" individuals.I still claim today that if you would have to have a college degree to enter the real estate profession, the consumer would have a much better opinion of us as well.