Contra Costa, California Real Estate

I list short-sales.  No, let me clarify, I successfully list and sell short-sales.  Ok, it's true that I spend hours on the phone trying reach the short-sale negotiator and it's also true that the majority of that time is spent on hold (the perfect time to catch up on paperwork and emails). But, although Realtors continue to beat the drum that "short sales DON'T get approved", they DO get approved and my sellers won't have "foreclosure" on their credit record. 

On a recent transaction I was extremely fortunate to get a Wachovia short-sale negotiator who is absolutely amazing.  He immediately picks up his phone and when he can't, he returns phone calls and email messages the same day.  This guy is a keeper!  Additionally, Wachovia locates their negotiators within the market area of the short-sales transaction.  I don't have to battle with a negotiator across the country about the market value in my city because Wachovia sends their negotiators to view the property.  I had my Wachovia short-sale approval in 10 days.

Since he is located in my market area, I asked him to lunch.  I thought it important to find out the challenges he faces. 

Here is "the other side of the story".  This negotiator has 75 files needing his attention on any given day, of which 35% won't be approved as submitted for the following reasons:

• The sales price is significantly below what the home would sell for as a foreclosure (bad for the bank and really bad for the seller who may have income tax liability)
  
• The accepted purchase contract includes repairs that need to be completed prior to closing at the lender's expense (the lender isn't the seller in a short-sale as compared to an REO).
  
• The home did not receive sufficient marketing visibility (wasn't posted on MLS, for example)
  
• This is the listing agent's first or second real estate transaction and they are asking the negotiator to tell them the contractual forms that should be completed (Negotiators aren't normally licensed realtors and, even if they were, aren't paid to act as a Broker)
  
• The seller is related to the real estate agent or the buyer (not an arm's length transaction)
  
• The buyer's pre-approval isn't valid (the buyer's income or assets haven't been verified OR the loan officer wasn't aware of the property condition and the buyer's downpayment/reserves are insufficient for approval on the specific property).
  
• Of the remaining files, another 20% are awaiting additional documentation which he has requested multiple times and still not received (to be sent directly to the negotiator).

In a nutshell, he spends more than 50% of his day on short-sale files that aren't going anywhere due to lack of Realtor experience or due dilligence.  Ouch!