When the REOs started hitting the market 2 years ago, the supply on the listing side was overwhelming REOs. This caused agents being solicited by companies offering the secret road to obtain REO. Not only that but some REO companies also saw an opportunity to have extra revenue to their bottom line by charging a fee to be in their list. Now that the lenders are realizing that the best way to maximize their profits is short sale, the REO inventory has decreased. And believe it or not, due to increase in short sale supply, there are already companies charging a fee in exchange for short sale business. Do you think it is worth?
There may come a time where we are required to "register" with a lender to submit a short sale package. As the process for short sale approval becomes more organized on the lender side I'm sure portals will be established and IT dollars spent by the banks to standardize their process. The fee we will pay there will be to ostensibly cover overhead for the technology/operation. There is CA law that is demanding reform from banks in their short sale process (standardized, timely, written responses and milestones for example). It is logical this reform will spread to the rest of the country. It is at that time, out of necessity, banks will move to comply and require opt-in ($$) from distressed property representatives.
I guess it depends on the company. I have heard of a few that are reputable. Titanium Solutions is one. What are the companies who are soliciting you $ for Short Sales?
My law partner and I have developed a formula to partner with realtors and get short sales closed. We work hand in hand with the realtor to insure the homeowner/client is given all the legal, tax, credit and deficiency advice while the realtor markets the property and solicits offers. When an offer is received, we submit the entire package, negotiate with the lenders for both acceptance of the sale price and waiver of the deficiency or satisfactory terms for the homeowner/client. We charge an upfront retainer to cover our processing cost and a success fee upon closing. Often our fees paid on the HUD from the sale proceeds and not actually paid by the homeowner/client. We would love the opportunity to help with your short sales.
SS business is abundant...anyone can look into NOD's and market the heck out of them for dirt cheap. Why pay a fee and referral business to some company that can't guarantee you a listing since the ultimate agreement decision are made by the sellers. Of course, there's Titanium, but they are about home retention rather than short sales (nice if I can convert them all to SS!).
Comments
Craig Aronoff, Esq.
Aronoff & Linnell, PLLC
(248) 977-4182
craig@aronofflinnelllaw.com