REALTORS: Avoid This Pitfall & Close Your Short Sales More Successfully!

I’m going to share a valuable lesson that I learned several years ago through the “School of Hard Knocks.”  This is when I was just getting started doing short sales.  Hope that you will chuckle, but more importantly, hope that this will prevent you from making the same mistake!

This involves doing a short sale on a property that has the 1st and 2nd mortgages with the same lender (referred to below as ABC Bank).

We prepared the short sale pkg meticulously, as we always do.  We got the authorizations signed by the borrowers for the 1st and the 2nd lenders (same bank) and faxed both of the authorizations to the same fax number (given to us by Customer Service).  We faxed the entire short sale package to the Loss Mitigation fax number that Customer Service of ABC Bank gave us.  About 2 days later, I was planning to call to follow up, to ensure that the package had been received.  To my surprise, Edward of ABC Bank called me first, to say that, “I am your Loss Mitigator on this file.”  Great!!  We now had Edward’s email address, phone #, all contact info, and he had assured us that he had received the package.

About a week went by, and I called to get status to find out when the lender was going to do a BPO on the property.  I was told to wait another week, and I called again.  After leaving multiple phone and email messages for Edward and getting no response for about 2 ½ weeks, I then just talked to the Loss Mitigation customer service phone rep who answered the phone lines.  After reviewing the file, he gave me astonishing news:  “We can’t order the BPO.  The 1st has to do that.  They haven’t even assigned a mitigator to this file yet.”   I pointed out that the 1st and the 2nd were ABC Bank, both the same lender.  I pointed out that Edward had called us first, stating, “I am your Loss Mitigator on this file.”  Nonetheless, to my amazement, he told me that the 1st was not in an office just down the hall.  The 1st was not in an office on another floor of this building.  The 1st was not in a different building in a different part of this city.  No, the 1st was in a different CITY and STATE altogether!! Not only that, the 1st had not even seen the short sale package, had not received the authorization, etc.  The 2nd Loss Mitigator (Edward) did not even communicate with the 1st.

Wow!  Was my face red!!!  Well, to make a long story short, the deal closed just fine.  I dropped what I was doing, faxed the authorization immediately to the 1st lender, faxed the entire short sale pkg immediately to the 1st lender, got the name & contact info for the Loss Mitigator for the 1st, and closed the deal.  It did take longer because the 1st was 2 ½ week behind the 2nd as far as evaluating the deal, approval, etc.  Now, I deserve most of the fault for this, but being a “newbie” at that time, I took Edward’s word for it when he said, “I am your Loss Mitigator for this file.” He absolutely did not state, “I am your Loss Mitigator for the 2nd lien for this file.”

So, lessons learned:  Never, ever, ever assume that the 1st and 2nd liens for the same bank are covered/handled by the same group of loss mitigators. In fact, always assume the opposite.  Always assume that you will be talking to 2 different loss mitigators in different cities, states, etc.  Treat the lenders like they are from 2 different banks, companies, etc.  Then you will be pleasantly surprised if and when you find out that you only have to deal with one person for both the 1st and 2nd liens!

This could have ended very badly.  We could have lost much more time finding out that the 1st was entirely different; we could have lost a buyer who got frustrated with the delays, etc.  But there are so many ways that a short sale can go wrong.  Put success on your side, and make sure to do the little things well, to dramatically increase your chances of closing!

Facebook Twitter Linkedin Email

21 Responses to REALTORS: Avoid This Pitfall & Close Your Short Sales More Successfully!

  1. Excellent contribution, incredible page design, maintain the great work

  2. Saved, I really like your blog! :)

  3. what causes acne

    ve been looking everywhere for this! Thank goodness I found it on Bing. You have made my day! Thx again

  4. Diet recipes for diabetics

    Just wanted to say you have a great site and thanks for posting!…

  5. how much house can i afford

    i love your blog, i have it in my rss reader and always like new things coming up from it.

  6. Great hammer of Thor, that is pwoerfully helpful!

  7. Valuable information. Lucky me I found your website by accident, and I am shocked why this accident did not happened earlier! I bookmarked it.

  8. pozycjonowanie stron www

    I discovered your blog site on google and check a few of your early posts. Continue to keep up the very good operate. I just additional up your RSS feed to my MSN News Reader. Seeking forward to reading more from you later on!…

  9. An interesting discussion is worth comment. I think that you should write more on this topic, it might not be a taboo subject but generally people are not enough to speak on such topics. To the next. Cheers

  10. Thanks a bunch for taking the time to explain the terminlogy towards the starters!

  11. Hello! I just would like to give a huge thumbs up for the great info you have here on this post. I will be coming back to your blog for more soon.

  12. Really appreciate you sharing this blog post.Thanks Again. Fantastic.

  13. Thanks so much for the blog.Really thank you! Keep writing.

  14. I was recommended this blog by my cousin. I am not sure whether this post is written by him
    as nobody else know such detailed about my trouble.
    You are amazing! Thanks!

  15. Federico Pletsch

    I just want to tell you that I am all new to blogs and definitely enjoyed you’re blog site. Most likely I’m going to bookmark your site . You definitely come with exceptional articles. Appreciate it for revealing your web-site.

  16. Real Estate Coaching

    I was looking at some of your articles on this site and I think you’ve written a lot of highly informative material! Keep up the good work!

Leave a Reply

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>