Oklahoma City Short Sale Series-Part Three

Part Three-Choosing a Realtor as a Seller

This is where I first invoke the Code of Ethics we abide by, that informs us that it is unethical to try to do something when we do not have the expertise to do it. When you are holding someones future credit history in your hands, a short sale is much more than a normal transaction, and it should not be done as on the job training. You would be better off to refer it to an experienced Realtor and get a referral fee, rather than put your potnetial client in jeopardy. Sadly, I see this happen everyday. As many Realtors scramble to find something to have as a transaction, and as short sales become more prevalent, the temptation is to get it the ole college try. If you are a owner in a default position, run like the wind.

Let's start with some potential questions to ask a Realtor, and excuse me if I throw in a few plugs for our team.

Question One. Have you done a short sale before and what is your success ratio? Estimates in some areas about the ratio can be as low as 15% where ours is over 95%. We also do short sales every week.

Question Two. What training do you have? Our team all goes through the CDPE training, Certified Distressed Property Expert. We also pay them a monthly fee to go through two monthly webinars where we can go over the changing landscape. We also have two national experts on retainer to bounce scenarios off of. We have also done them for years, not months or days.

Question Three. What paperwork is needed before we list the property? If a Realtor says just the listing agreement, and the Commission mandated paperwork, that is wrong. There is 60 to 150 pages of documentation we need to turn in once we have an offer.Much of short sale work is done before the house goes on the market Loss Mitagators are swamped. Incomplete files are put to the bottom of a stack that could be 500 files high. Many are paid bonuses one how many they can trun over to Phase 2. They love complete files.

Question Four. What would you do with multiple offers? If the Realtor says send them all into the lender, vote them off the island. You are still the owner in Oklahoma until the judicial process is finalized. You can take backups, but only one offer is sent into the lender.

Question Five. I am on the sheriff's sale list, is it too late? Oklahoma is a judicial state, and a sheriff's sale is the way to clear out everyone but the first lien holder. We have been successful in having a home removed from sheriff sale, so it is possible. Just please don't wait until two weeks before. We got it removed two days before but you increase your risk.

Question Six. Do I still need to bring money to closing? If the answer is no, have them qualify that. If the Realtor does not account for the cost properly, then you may have a deficit. This year no client of ours had a balance.

Question Seven. How do you deal with the second mortgage, especially if it is not with the same company? If you get silence you are in jeopardy. Second mortgages can be tricky, and they don't always completely release you. In most cases we have got them to do that. After all they get nothing in foreclosure unless they buy it. This can also be complicated if their is a private mortage insurer and the second is a line of credit. We know the drill, but we are not going to gaurantee you success. Don't be fooled with a nothing to worry about. This is where it can really fall out.

Last and most important question. Why do you do short sales? Trust me there are easier ways to make a living in real estate. First, short sales demand three times the work and twice the normal expertise. It sounds like we are not very smart to do these. Maybe that is true but here is my answer. It is not always about the money, it can be about the challenge. We do value a sense of accomplishment. Let me add that there is satisfaction at closing when you have rescued a person, a couple, and especially a family from 10 years of a bad credit record. When the family can repair their credit in two years or less and go on from a real hardship, you have given people hope for the future and not regret about the past. So let me add a real estate 101 marketing tip for anyone considering getting the expertise. If you value loyalty after the sale from a client, no greater fan can you make than someone who is successful at getting a short sale finished. I should add that they are more than a fan, they are a friend.