Short Sale Banks
It’s been a long time since I’ve had a bank try to discount our real estate commissions, but a Guild Mortgage short sale shows the bank is not in tune with Sacramento short sales. All of the federally insured mortgages, including the HAFA short sale program, pay 6% commission but not a Guild Mortgage short sale. By the time I’m through paying my assistant for handling all of the paperwork, the net result is pretty minimal.
The MLS instructions allow the buyer’s agent to share in that forced reduction. Sometimes, depending on the transaction, including how much work I have to do on the buyer’s side, I let the buyer’s agent share in that reduction, but I have not done that for a long time. Generally, I am generous. I often will absorb the full hit myself rather than pass it along to the other agent. Especially if that agent has cooperated fully with the terms.
Because agents rarely write a Sacramento short sale offer nowadays, especially if there is a similar home that can close escrow sooner, it is not unusual for an agent to overlook how a seller and her listing agent may view the terms submitted. In fact, now that I think about it, many agents, it seems, tend to ignore the other side of the transaction. They don’t always think ahead or consider how the offer might be received, you know, they seem incapable of predicting how the seller may react. They just know what they hope to accomplish when they barrel forward, guns blazing, and then wonder why their offers are continually rejected. Must be somebody else’s problem, not theirs.
Every so often I get phone calls from investors who ask if my sellers will consider submitting a lowball offer to the bank for a preapproved Sacramento short sale. They realize the bank has preapproved the price but they expect to negotiate with the bank. For a hamburger today I will gladly pay you on Tuesday. They don’t understand that a preapproved short sale price means the bank will agree to sell at that price, versus, let’s say, a much higher price.
These are the kind of yo-yos who are probably used to dealing with a list price on an REO and they have little working knowledge of a short sale. If I say we’ll sell a home to them for a $1.00, they want to pay 50 cents. It doesn’t matter what the price is, they don’t want to pay it. They are giant time sucks. If you don’t want to offer the preapproved short sale price, I say go make somebody else’s life miserable and leave us alone.
The beauty of being so deeply entrenched in Sacramento real estate is there is always something horrible happening every day, some new fresh hell the likes of which you’ve never seen before and, in some cases, with a little bit of luck, you’ll never see again. It’s almost like a storm chaser’s unicorn photo opportunity: double tornados popping up on the horizon under a supercell. You’re mesmerized, wondering how can this happen? Listen to this. We received, for example, a short sale approval letter for an Elk Grove short sale from Seterus when the loan was not short.
We have enough crooks in Sacramento short sales that we, ourselves, don’t need to add to the mix, whether we are a seller, a buyer or a real estate agent. I tell my short sale sellers that they need to keep their noses clean. Don’t do anything that the lender can later construe to be mortgage fraud. Because if a seller is dishonest, the bank can reverse the release of liability for that short sale and pursue a seller for the remaining balance, which is the whole reason to do a short sale in the first place. To get that release of liability.