Archive for month February, 2009

Do Agents Really Need Help from a Third Party?

Saturday, February 7th, 2009

I respect the companies who negotiate Short Sale transactions for agents, but in my personal opinion, I prefer to handle my own negotiations.  Let me illustrate why.  A few months ago, one of my clients thought that it would be easier for me if he hired an attorney to negotiate his Short Sale with both lenders.

After three months of frustration, with my client paying ridiculous fees to this attorney, here is the settlement that he reached:
 - My client was going to have a deficiency note from the second lender in the amount of $160,000
 - My commission would only be 1%
 - The Buyer’s agent would only get a 1% commission
 - He would get his fees, directly from my client’s pocket

After discussing this with my client, who could not handle the deficiency notice, I stepped into the negotiations and tried to fix it as soon as I heard, about a week before closing.  The second lienholder did not give us the acceptance letter, and we ended up losing the buyer.  If the client would have to declare bankruptcy because he couldn’t pay the deficiency note, a foreclosure was his better option.  But I kept on trying.

I do not have anything against anybody, but I truly believe I am in this business to help people in a fair and honest way, on all my listings and transactions.  This is my livelihood and I need to be paid for all the effort, time, and help that I offer to my clients.  This is why I believe that all the parties involved must work with honesty toward the same goal: Helping a homeowner in distress to create a new future on the financial level.

I applaud all those of us who strive to achieve our goals of helping people, and being paid for our work.  I can say with pride that none of my clients has ever received a deficiency note after the short sale has been settled.  And this is why I will never accept a listing where I need to allow an attorney to negotiate on my client’s behalf again.

We learn from our experiences.  Tell me how you work, and what kind of responses you get from your lenders.  The end of this story is an incredible success, and I will tell you all about it in a couple of weeks when we close this transaction.