Short Sales

Randy - During the Boom years, many banks closed their Loss Mitigation Deaprtments since there wasn't a need for them. Now, they are scrambling to put such a department in place, sometimes with people who are not familiar with the process. This leaves everyone looking to someone else to provide a final answer, with no one really wanting to make the decision. This has been my experience, anyway. When you call, try to nail down a number and contact person for the Loss Mitigation department. It requires a diligent call/fax/call/fax plan. Best!

Great Advice Paula.

One other thing; banks arent in the real estate business. Most of these people in the servicing department arent on the highest pay scale either. Therefore, they may not quite get the concept of a 30% loss today is better than a 20% loss two years from today. Having said that, make sure you talk to someone with intials behind their title no less than AVP (Asst Vice President). Also make sure to attach a GOOD COVER LETTER to your clients offer and if possible, back it up with recent sales data and comps if available.

Randy,

I have been successful in at least 5 short sales in the last 6 months. My experience has been positive once I found the "right" party to speak to. Once I have the information release letter from my Client, and a letter of Hardship from them, I call the bank and ask for the fax number to loss mitigation and who is handling the file for (name, loan number, address). Ask for the "short sale work-up" or "short-sale package" which lists everything they need to approve the short sale.

If you have all your ducks in a row, it still may take 3-4 weeks for an approval. It's best to submit an offer for the property with the request and why they should take it. You'll have to do your homework.

FYI: 2nd Mortgages will often take 10% of value before the Sheriff's sale.

 Good luck!

Ray Spitler, GRI, e-Pro
Keller Williams Realty, Saginaw, Midland, Bay City Michigan
www.MBShomes.com

 

pretty good stuff here! its interesting to me at how different each bank is regarding the process. countrywide is time-consuming, but structured so that you just have to play the system. huntington is a pain in the ass and slow. its a big difference between local lenders where you get to talk to a real person and the nationals that you just get a department. the best advice i have is to get a direct phone number and a name and call very often. we seem to be getting less short sales as the banks seem to either taking the loan and modifying or folks are just headed to foreclosure.

Hold on to your hats... we are going to see many more short sales this year! Lot's of ARM's will adjust, the ban on new foreclosures has lifted, and spring is here. If the bought or refinanced in the last 3 years, chances are if they need to sell, it will be short.

At least the banks are starting to get with the program. I am seeing a decrease in response time for short sales. My last one took 5 weeks from list date to close. Getting acceptance in two weeks for the last couple I have done is great! Of course a lot depends on the Mitigator and the Agents you are working with. Don't be afraid to offer help if you think it will expedite.

Ray Spitler, GRI, e-Pro
Keller Williams Realty
Midland, Bay, Saginaw County Michigan
www.MBShomes.com

As predicted, there were a lot more Short Sales in 2009. But we have not seen the bulk of it yet. 2010 will be "the year of the short sale" and all inidcations are that this is true.

Bank "Shadow Inventory" is reported to be aproximately 600% over 2009! That is not a typo...

Shadow Inventory is what the banks have on their books but not yet processing the foreclosures because they have not had the time or manpower. They still don't have the manpower but I hear they will be proceeding with foreclosures this year.