There is a trend of late
where several of the big banks – Bank of America and Chase to name a few are starting to refer a West Sacramento Short sale agent to sellers
in need of a West Sacramento Short Sale. The programs are
called many different things such as “Preferred Partner” or “Alternative Right
Party Contracts”. To become one of these “Preferred Partners” as an agent you
basically have to sell your soul to the retail lending arm of the particular
bank and promise to send them business. I know because of the success we’ve had
was contacted by both to participate. I chose not to participate so my loyalty
to the seller could never be questioned.
While good in theory,
the real question about these programs is who do they really benefit – the
homeowners looking to short sale their West Sacramento home, the Bank or the West Sacramento Short Sale Agent?
Now that’s a Great
question. I don’t know about the rest of the country but I do know about
California. In California it is both legal and ethical to represent both buyer
and seller in a West Sacramento Short Sale. While it is also true
that many of the banks cut commissions when this happens it is legal and
ethical. The seller has to be notified in writing and has the option to say yes
or no to what is referred to as “Dual Agency”. Now I personally choose to seldom
if ever represent both buyer and seller in a West Sacramento Short Sale because I NEVER
want that seller to look me in the eye and ask “Mike, who do you work for?” I
don’t work for the bank, I don’t work for the buyer, I work only for the
seller. Yes I could make twice the money in doing so, but I never want there to
ever be a doubt about whose best interests I am looking out for – the sellers
pure and simple
But what about when an
entity that is not a principle to the transaction – in this case the bank, is
sending you their recommendation of who to use for your West Sacramento Short Sale Agent? Now legally and
ethically the West Sacramento Short Sale Agent has a
fiduciary duty to you the seller but let’s think this out for a minute.
Who is your West Sacramento Short Sale Agent working
for? You or the bank? Whose best interest do they have at heart – yours or the
source that is giving them regular steady business in an uncertain market?
Makes you think doesn’t it. AND what are the qualifications of this West Sacramento Short Sale Agent. Did they
have experience in the trenches or did they make a deal with the Retail lending
arm of your particular bank.
Now, I know some agents
who are “Preferred Partners” with a specific bank and I would NEVER even doubt
their motivation and ethics in representing the seller in a West Sacramento Short Sale. But keep in mind a West Sacramento Short Sale is an us vs. them
negotiation. My job as your West Sacramento Short Sale Agent is to get
you the best deal I can including any relocation incentives available, getting
values changed or postponing foreclosure sale dates. If this means I have to
step on some toes or go over the banks head directly to the investor, CFO, EVP
or other so be it – I work for you not them. Is a West Sacramento Short Sale agent whose
livelihood depends on getting these assignments from the same bank willing to
pull out all the stops for you and risk his referral source? Hopefully they
are.
All I am saying is your West Sacramento Short Sale HAS to be done
right. If you use a West Sacramento Short Sale agent who was
referred to you by the bank, interview them and also interview one or two
others who are not in bed with the lender. Check their experience and
qualifications.
I am sure this post will
piss off a lot of people, agents and lenders alike – but who cares. My
obligation is to the West Sacramento homeowner and no one else.
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