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Short Sale Solutions to the Top 5 RE Agent Obstacles to Short Sale Success

By
Real Estate Agent with The Kenny Wagner Group @ Realty ONE Group S.0174703

Top 5 RE Agent Obstacles to Short Sale Success 

  1. Commissions are discounted by lenders
  2. Lenders don't want the package unless they have an offer
  3. Execution & Accurate Valuation of the Interior BPO
  4. Have a buyer but the short sale process takes too long so they buyer walks
  5. Wasted time negotiating with the lenders when they should be promoting their properties and/or themselves.

This is How I (an Investor) Help RE Agents:

 #1 Problem = Commissions are discounted by Lender

#1 Solutions

  • Investor can guarantee a full commission on every deal that closes
  • Agent markets the property to find the end buyer
  • Listing Agent & Buyers Agent receive 3% commission each
  • Agent who refers the property eligible for double commission - you make more money.

#2 Problem = Lenders don't want the package unless they have an offer

#2 Solutions

  • Investor will make an offer on every short sale property the agent has listed as long as it meets our criteria
  • Property must be in our "sweet spot":
  1. -Market value of $350,000 minimum, no maximum (Vegas $300k+)
  2. -$200,000 above Median House Values preferred
  3. -Move-In Ready - no rehabs or fix-ups
  4. -Multiple mortgages with a large 2nd mortgage.
  5. -No Condos, Townhomes or marginal properties.
  6. -Seller must be at least 30 days in arrears on the mortgage or about to be.
  7. -Sellers must want to sell their home and move on.
  8. -Sellers must be cooperative on the collection of the short sale information required.
  • Investor offers immediately so it starts the short sale process
  • Due to market - Better to start out low - we can always come up in price
  • Once BPO is completed the investor will negotiate with the lenders and raise the offer price through negotiations

#3 Problem = Execution & Accurate Valuation of the Interior BPO

#3 Solutions

  • Investor will perform BPO prior to lender BPO/Appraisal
  • Investor will drive the price down to a "sellable" number
  • Investor will follow-up with the BPO Agent to get the value 

#4 Problem = Have a buyer but the short sale process takes too long so they buyer walks

#4 Solutions

  • The Short Sale process is already started and BPO is completed
  • Investor will coordinate with agent on when an offer can be accepted
  • Investor will coordinate with the agent on the listing price depending on negotiations
  • Once buyer makes an offer it can be accepted or countered immediately
  • This ensures that when a buyer writes a qualified offer that is accepted the transaction can close in a timely fashion (30-45 days)
  • Closing takes place in 15-45 days instead of 3-4 months because the package has already been submitted and the BPO already completed

#5 Problem = Wasted time negotiating with the lenders when they should be promoting their properties and/or themselves.

#5 Solutions

  • Agent gathers paperwork from the Seller - that's it.
  • Investor handles all the negotiations
  • Investor will perform and complete the BPO with the Agent
  • Investor will "sit on hold" all day if that's what it takes
  • Agent will get twice weekly status updates via email
  • Agent spends time doing what they do best - marketing and promoting themselves and their houses.
  • Agents can continue to find more listing and buying opportunities
  • Investor does what it does best which is BPO's and Negotiations
Posted by

Kenny Wagner

The Foreclosure Mitigation Company

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