Sidney Jimenez, CDPE, Short Sale Expert, 954-665-9449,

According to RealtyTrac, REO's are dwindling in many parts of the country even as Foreclosure activity is higher than ever. There seems to be less homes on the market causing price to rise ever so slightly in many markets. A nice parlor trick being perpetrated on the American public and real estate agents around the country.

There have been many news reports and blog posts being published that are giving many people false hope as to the crisis being over or close to being over. It seems clear now, that we are not anywhere near the bottom or close to a recovery.

Lenders are holding onto the Foreclosed properties and not necessarily putting them back onto the market in any speedy fashion. This also explains the "stalling" of Short Sale approvals as they are trying to control and manipulate the amount of inventory and try to stabilize prices.

Well, the problem with that is that this crisis will take much, much longer to work it's way through the system and prices will be stagnant, at best. It is also taking millions of people lives for granted. The Lenders are not trying to fix the problem or assist the very system they single-handedly brought to it's knees.

Why is no one taking these Lenders to task?

Why are they not being forced to help the people they've hurt?

Oh! I know, we are supposed to let the free market system work....

Well, is it working?

I closed on a Bank of America Short Sale this past Tuesday. I know, I know...there have been rumors that Short Sales and BofA are not friends, but I was able to get one through.

Here is my dilemma...

Cal Ripken left baseball at the right time and his legacy is intact...Jim Brown left football and his legend grows every year. I might be the agent to get a Short Sale approved from BofA...ever. That must be worth a star in Hollywood, right?

It can't be possible that there could be another BofA closing in my future? It's like winning the lottery...TWICE!

Well, my mind is made up! The office has given away desk, the cake is on order and the balloons are already being filled with helium. I'm going out while the going is good!

But wait....I got another call today from a rep at BofA...are they sending me a retirement gift? No! I got another approval from BofA...Wow! It can happen! Bank of America does approve Short Sales...RETIREMENT IS OFF (after I get my piece of cake)

Hang in there fellow agents...there is a chance you too can be celebrating an Approved Short Sale from Bank of America keep positive, and keep your eye on the prize. Don't let negativity cloud your professionalism and remember there is a family counting on you.

It seems to me that the extinction of the Realtor is at hand. The abundance of Short Sales and the new hard line tactics employed by the Lenders is causing more and more agents to leave the industry or just avoid Short Sales altogether.

Already there are agents that pronounced their unwillingness to get involved with Bank of America Short Sales...that is quickly being expanded to Wells Fargo, Chase and the once shining star in Short Sale negotiations, IndyMac (now OneWest). How much further into the future will it be until the majority of agents stay away or find another career or niche?

I've been going back and forth with Wells Fargo, who holds both mortgages. The First agreed and the Junior Lien is playing Hard Ball...we offered them $5,000, they said NO!..at least $10,000, they countered...We said OK, they then came back with a Promissory Note for the balance of the amount owed ($85,000). We then tried to find out what it would take to get rid of that Note...they said $38,000 cash, we countered with $28,000. They told us it would be submitted to the Approval Team...Well, the Team said that wasn't enough and countered with $47,000! What happened to the $38,000? But wait! We were told that was no longer available...OH! and the homeowners would still need to sign a note for the balance.

In the past few weeks it has become quite clear that Lenders are playing under a different set of rules, at least the Junior Liens (2nd Lien Holder). In the past they would take $3,000 from the first lien and hop away happily that they got something.

The short answer is that they are not negatively affecting their bottom lines, rather it is being enhanced. It is quite a simple process. We, as agents, are working for our clients. The Lenders are working in large numbers.

Follow me: In the past the Junior Lien could approve 20 Short Sales receiving $3,000 on each for a total of $60,000...today they will demand $30,000 from each in cash or $75,000 in a Promissory Note. Well, if 3 out of 20 agree to the cash, the Junior Lien just took in $90,000. They will have a higher percentage agree to the Note which they can then sell to a Collection Co. and net even more.

As I read and talk to my fellow agents I hear many horror stories about how the Buyer was able to throw a monkey wrench into the Short Sale proceedings.

Well, there are certain things a Listing agent can and should do to prevent from the deal falling apart at the last minute or after several weeks of negotiating an Approval Letter with the Lender.

First, don't settle for a mediocre offer. If you and your client don't believe the offer is sufficient then by all means give the Buyers a counteroffer and explain the situation. Make the counteroffer in person so you can sit with the Buyer and their agent to explain the process and the reasoning for the counteroffer. Avoid letting the Buyers agent deliver your message...Can we say, "Lost in Translation."

Second, don't settle for an offer without a deposit. If there is no deposit there is a higher likelihood that the Buyer will walk. It can also help you gauge if the Buyer and their agent is just shopping around for the first property to be approved. A deposit must be made at the time of Seller acceptance and be made to the Sellers title company of choice.

Third, make all offers or contracts contingent on the Seller getting at least 90 days to negotiate with the Lender (each agent should require an adequate time frame for their area) and gain an Approval Letter. If the Buyer does not agree, or thinks it is too much time, what do you think they'll do 30 or 45 days into the negotiations.

These simple steps should be the cornerstone of your accepted offer, anything less is just putting you and your client in a losing proposition. I know, some of you will say, "What if the Buyer walks away?"

Would you rather have the Buyer walk away at the beginning or at the end?