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Real Short-Sale Questions and Real Answers from the Lori Bowers Group

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Real Estate Agent with California Lifestyle Realty DRE# 1780607
Real Short-Sale Questions and Real Answers from the Lori Bowers Group

Some of our regular sales are turning into short-sales... but not all regular sales will qualify to be short-sales.  Successful short-sales begin with answering questions, but also asking the right questions of our potential clients.


Question:  It's time to discuss a short sale. I need to know you or your companies involvement
in short sales and whether you use a third party negotiator after you have an offer
to purchase.
Give me an idea of the price at which you would attempt to market the property.
Have there been other short sales in the neighborhood and if so what were the prices of the sales. 

Answer: 
We do many short-sales and have good success getting them approved and closed. We do not use a third-party negotiator-- we call everyday and stay on top of the deal until it is accepted.  Depending on the lender, we have relationships with many of the banks and contacts that help us get things expedited.

 Short sales are pretty rare in this neighborhood... but there have been some fore-closures. Basically you choose a reasonable starting place... say $175/sq.ft. and reduce it weekly until you get an offer.


List of requirements needed when preparing a Short-sale packet for the bank-- look them over and see if a short-sale would make sense for you.  All the documents listed are required and must be included.


1. Written permission to talk to bank on your behalf.
2. Hardship letter stating why they should allow you to do a short-sale.
3. Bank statements-- last 3 mos.
4. Mortgage Statements- 1st and 2nd
5. Last 2 years tax returns
6. Detailed Financial Statement-- monthly expenditures.

 

Question

We previously submitted the info you listed to B of A. I'm curious as to how you would propose to market the unit. I doubt you can hold open houses and the tenant may not want showings? I'm not in favor of weekly price reductions, it certainly doesn't help the lender and why would a Buyer step up when they realize the price is continuing to fall. Looks more like a reverse auction.

Answer: 

As far as the financial info, hardship letter, and tax info-- it all needs to be current. How many payments have you missed?  Have they filed a notice of default yet?
We market short sales pretty much the same as regular sales--we do most of our marketing online....and the lower prices bring buyers and offers. 

Buyers do have incentive-- because they want to get an offer in before someone else does. 

Your current tenant is there until the 13th of March-- I don't know about your plans for April.  I have already shown your place recently-- by calling and giving your tenant notice that I had buyers who wanted to see it.
As you know, short-sales require a huge amount of time and patience-- and it is not an option for everyone. You would need to qualify, be completely committed, and rely on our process to get it done.

 

We have great results with short-sales because we ask the right questions, let people know what the requirements are , and let them know that short-sales are not for everyone.

If you have questions-- call Kathy Schowe at The Lori Bowers Group 760-333-8886.

 

 

 

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Kathy Schowe   760.333.8886  California LifestyleRealty  California Lifestyle RealtySchowe Properties                                           

        

                  
                                   

Cara Marcelle Mancuso
Golden Girls with SW Desert Homes - Tucson, AZ
Call a Marana neighbor, I'm THERE!

Nice post, Kathy.  Short sales are about committed sellers and agents working together to find a solution.  The Homeowner must be willing to do their part: the homework and submission of the necessary records.  The agent cannot market a short sale listing without full participation.

Feb 18, 2011 05:24 PM
Karen Sullens
Rockford Il Realtor l Chicago and Rockford MLS - Rockford, IL
Rockford IL Realtor | Listing & Buyers Agent Team

good read! thanks karen kw rfd, il

Feb 18, 2011 05:28 PM
Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Kathy, it is imperative that we as listing agents have asked all the questions we can, and answered their questions and more.... people who are in this position often can't even think straight and we have to help them through this process, and open their eyes to what the process is!

Feb 18, 2011 10:30 PM
Lori Bowers
La Quinta, CA
The Lori Bowers Group

Great post Kathy. This is well-written and good information.

Feb 19, 2011 07:00 AM
Tina D Saporito, Your Dedicated Palm Desert, CA Realtor Since 2005
Ronald Christopher & Associates. Proudly serving Palm Desert, La Quinta, Indio, Rancho Mirage, & Palm Springs. - Palm Desert, CA
Call (760)799-8460. www.JustListedinPalmDesert.com

That is some great information on short sales and the process. It sounds like you may have a challenging, or shall I say resistant, client.

Feb 20, 2011 07:26 AM
TODD PICCONI INLANDEMPIRE & SOUTH ORANGE COUNTY, CA
TODD PICCONI REAL ESTATE - Dana Point, CA
Personal Engagement,Precision, and Professionalism

Love this post, Kathy!

Happy Week :)

Feb 23, 2011 06:10 PM