Hope for Short Sales, Posted by Vicki

I was recently talking to a member of the NAR staff who is looking to move closer to work. She mentioned that her REALTOR® discouraged her from looking at properties that are potential short sales. The reason? The agent explained that those transactions are difficult to close because they involved what she termed “funny money.”

In other words, the money from the sale is divided among various parties, which can delay the sale up for months.

We have heard from so many of you about this problem, and we finally have some good news to share.

As you know, last May, the Obama Administration announced that they would provide guidelines for short sales that would help improve the process. On November 30th, the Treasury Department finally released those guidelines, and we have posted a link to them – and to a FAQ – on Realtor.org.

As a recent article in the Wall Street Journal noted, the rules could help provide structure to a process that has been “chaotic.” I sure hope so.

The new rules don’t take effect until April, so until then, we’ll have to keep trudging along with the current process. But, this is a step in the right direction, and I am confident that we will see a much more robust market in 2010, as buyers return in force.

Now, if we could just get the banks to lend money. That’s a topic for another blog. – Vicki Cox Golder, 2010 NAR President

  1. Vicki,
    I wrote my own blog post after reading your post yesterday. I think it’s only fair that I share this with you….
    Greetings! For those of you that don’t know me very well, my name is Fred Weaver and my partner Kevin Kauffman and I run Arizona’s Premier Short Sale Team (www.Group4610.com) – we’ve listed and closed more short sale transactions in the last 2 years than any other real estate team in Arizona (200+ short sale transactions).
    I’m writing today with a bit of a sick stomach as I just got done reading one of the most disturbing blog posts on Short Sales I’ve EVER read…the most sickening part of the entire blog post is the author – 2010 National Association of Realtors (NAR) President Vicki Cox Golder.
    Now before some of you jump down my throat and get mad at me, hold on one minute. I don’t personally know Vicki and this blog of mine is not intended to slander her, it’s intended as a wake-up call for Vicki, you the reader, and our entire country. PLEASE STOP WRITING ON TOPICS OF REAL ESTATE THAT YOU ARE NOT FULLY EDUCATED ON!!! You have been a Realtor for 37 years specializing in commercial, farm, and land – you are not a Short Sale expert!
    Vicki, as 2010 President of NAR you are called to be a leader of influence. The tone of your article below, while based on ‘hope’, seemed rather weak in spirit to me. Please, before you’re going to write on a topic like Short Sales, do some REAL research and talk to some experts in the field (some random Realtor that worked with a NAR staff member, our government, and the Wall Street Journal, are NOT experts in the field).
    These new Short Sale guidelines that the Treasury Department has released are not mandatory for loan servicers – maybe you want to point that out in your next article as well. Consider for a moment that a good majority of the TARP money that was given by the government to the nation’s banks over the past few years has all been given back OR is in the process of being given back. Think about that for a moment…the government was loaning the nation’s banks money to help them out, and most of them ended up not wanting to follow the tight rules and constraints that the government was placing on the money and are giving it back OR have already given it back. What makes you think these same banks that rejected TARP funds will want to participate in the governments new Short Sale program (HAFA)???
    Vicki, I encourage you to greatly increase your education around Short Sales. STOP reading the Wall Street Journal or any other media publication out there. START influencing these same media sources with REAL, RELEVANT, and ACCURATE information. The public is done with weak stories of ‘hope.’ We want truth, not NAR or the government’s latest spin. In 2010 you will be in a position of great leadership, please use this place of leadership and influence wisely. STOP talking to Realtors, escrow officers and title companies that make up the majority. START talking to the minority – as you should know more than 80% of all real estate business is done by 20% of the agents – start talking to the 20%. Most of all, STOP listening to the government. START watching what they’re doing and what the banks are doing, NOT what everyone’s saying. “You shall know them by their fruits” as the Bible says. START influencing the government and the banks – again, you are in a position of influence to be able to do this!
    Lastly, I invite you to attend one of my partner and my upcoming Short Sale classes. You can find a list of these classes at http://www.group4610.com/realtor-classes.asp. I also invite you to tune in to http://www.ShortSalePowerHour.com for daily real, accurate, and relevant content from people in the trenches that have closed hundreds of Short Sales with a 90+% closing rate (certainly you know the industry closing rate is anywhere between 15-40% depending on who you talk to). – Fred Weaver