Who is handling your Short Sale in Big Bear?

Previously Posted on Activerain

Are you one of the many home owners who own a cabin in the Big Bear Valley?  Are you now in a place in your life where you need to sell your cabin in Big Bear as a Short Sale?  If you find yourself in this position, please make sure that you hire an experienced Real Estate agent to help you with your short sale.  If your agent doesn't have a lot of experience with the short sale process, you might end up in a situation like I am about to describe to you.

At the end of June, I wrote a full price offer on a property in Big Bear that was being sold as a short sale.  Before writing the offer, I sat down with my client and explained how the short sale process works and how her patients would be tested during this process.  She felt very strong about this purchase so I called the listing agent to make sure that he had all of the paperwork needed so that the Short Sale package could be presented.  The offer was presented on June 28, 2009. 

The only time I got any updates from the listing agent on this short sale was when I either called their office or sent an email asking for an update.  I can't prove it but I'd bet that my phone calls or emails would jog their memory and it was only then that they would call and get an update.  It has been my experience that if you don't act proactively, you get answers like I have been getting.  I'm told that the file has been assigned to three different negotiators and in that time frame; they have had two Broker's Price Opinions (BPO) completed.  A month ago, the word was that they don't know why this file has not been closed and a Supervisor was going to take control of it.  The next update I got was it was being assigned to a negotiator and a BPO was to be ordered!  Just this last week I'm told that a supervisor is going to take a look at it again. What's going on?  Why isn't the listing agent telling these people to look at their files?  What's wrong?  I can tell you what's wrong.  The listing agent is NOT experienced in Short Sales.  If they were experienced, the bank would not have done three BPO's.  When the bank started talking about the second BPO, the Red Flags should have been waving.  The listing agent should have been all over the bank at that point.  But here is the thing.  If you aren't communication with the bank, you are not going to know about things like this. 

It is now the middle of November and we are not any closer to closing this deal than we were when we presented the offer.  My client is very frustrated over this situation, but she won't cancel the deal because she loves the house.

The work starts after you get the offer on the Short Sale listing, or should I state that this is when the work SHOULD start.  That is when you start spending a tremendous amount of time on the phone talking to the bank representative.   As the listing agent, you can't send the Short sale package in and then sit back and wait to hear from the bank.  You have got to be very proactive in your dealings with the bank and call at the very minimum of once a week. 

If you are in a situation where you must sell your home in the Big Bear valley, or anywhere else for that matter, make sure that you list the home with an experienced Short Sale listing agent.  Don't select your agent by the size of the advertisement    when you do interview the agent for the job of selling your home as a short sale, ask the following 10 questions 

1. Have you ever closed a short sale before?
2. How many Short Sales have you closed? 
3. Can you show me documentation to show the number of Short sales that you have closed?
4. How do you handle offers?  Do you submit them all to the bank, not having your sellers sign?  (Which, in effect, means that there is no valid offer and acceptance) and let the bank figure it out?  OR do you use multiple offer protocol, notify all agents to submit their highest and best offers, review them with the seller, have the seller accept or counter the best offer and then submit to the bank(s) for acceptance?
5. What communication do you had with the bank?
6. Will the bank approved the list price?
7. My loan has PMI (mortgage insurance). Will that require another level of approval or pre-payment penalty?
8. I have a first and second trust deed.  How will that affect the Short Sale?
9. I'm just had a Notice of Default filed.  Can I still short sale the house?
10. What happens of an offer comes in 2 weeks before the auction date? 

From the way that the agent answers these questions, you should be able to get a good idea whether or not he or she has had any experience is selling Short Sales.  If, for any reason you need to sell your Big Bear property, feel free to contact me.  My email is tony@tonycard.com and my phone number is 909 866 3481.