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Negotiating with a Lender for a Short Sale.

By
Real Estate Agent with RealEstateAdvisor.Pro

Negotiating with a Lender for a Short Sale.

Your day started out great. Business as usual! But then you get that phone call! The closing you've been working on for so long just fell apart. You go to the office and clients begin to call you asking why their house is not selling. The day just continues to get worse. By the end of your day, you need a drink or a psychiatrist.

This is pretty much EVERY day for a Loss Mitigation Negotiator at a lenders office. Overwhelmed, tired, and hit with so many things at once that you just want to scream!

The only euphoria a Loss Mitigation Negotiator has is when a Short Sale application comes across their desk that is complete and comprehensive.  When the package is all there, it makes their job so much easier, and you get more attention than the ones that are not.

Some agents/investors either do not know how, or do not want to complete the package. There is no doubt that it's a ton of work to get it right! But, in the long run it pays off.

Agents in South Jersey have either seen my name, or know who I am. Because of this, I get many calls asking for assistance in the short sale process. The nightmares I hear are simply unreal. Six to eight months working on one short sale! No wonder why agents hate short sales so much! How do you keep the buyer on hold that long?

I am not here to judge another agents work, nor would I, but I get the feeling this is the normal with quite a few agents out there. This does NOT have to be this way.  I complete about 20 short sale transactions per month. Most take about six weeks, but some have taken as little as one week. When I list the property, my team kicks into overdrive collecting data from the client, market data of the area, selling conditions for the county, and anything else we can find that will help us in the process.

When we submit our package to the lender, it normally looks like a novel. We provide everything from newspaper clippings, to graphs and charts of the area. It's so important for the lender to understand everything about the transaction for them to make an educated decision about the sale.

I even initiated with my clients a full home inspection for properties that are ten years or older. Yes, I pay for this inspection myself, but I like to provide the lender a full conditional overview of the subject property from a licensed inspector. They love this!

Negotiating with a lender for a short sale is easy if you have the knowledge and the tools you need on your side.  Providing the lender with as much information to prove your case is paramount! Remember folks, it's called negotiating!

Best of luck, and I hope this helps you!

Frank Wible
Realtor, Loss Mitigation Supervisor
http://www.shortsalenj.com/

BLOG/GROUP: http://activerain.com/groups/foreclosedata

 

 

Dan Forbes
Bradenton, FL
Thanks for the post on short sales. I like the fact that you submit supporting documentation to the lender.  It certainly helps them make a better decision.
Nov 23, 2007 02:11 AM
Aslan Realty Advisors, LLC
Fort Myers, FL
Staying a step ahead with Pride!

Agreed! And IMHO The most important fact that the broker needs to know is....

How much is the property worth? 

The BPO is one of the largest hurdles you need to clear when perfecting your short sale negotiation

Frank have a great day!

Paige 


Nov 23, 2007 02:38 AM
Frank Wible
RealEstateAdvisor.Pro - Apollo Beach, FL
Real Estate Services
Always, Always, Always meet the Real Estate Agent or the appraiser at the property. This is one of the biggest mistakes made by the agent doing the short sale. Bring your comps, point out issues with the property, bring your home inspection is you have one. This is so important!!
Nov 23, 2007 02:42 AM
Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes
I wish they only took a week I had a complete package with country wide sit there for 3 weeks before I got a negotiator. Then took 1 week to even order a bpo.
Nov 23, 2007 02:44 AM
Frank Wible
RealEstateAdvisor.Pro - Apollo Beach, FL
Real Estate Services

My inside folks at Countrywide just sent me an email last week and told me it could now take up to four weeks to be assigned a negotiator. This is horrible, but it goes to show how busy they are getting! If you get an 80/20 mortgage with Fremont Mortgage crack the bottle of Champaign! Nothing against Fremont of course...but these are the ones I get done in like 24hrs!

Nov 23, 2007 02:48 AM
Brian Sharkey
SharkeyRE LLC - Singer Island, FL
SharkeyRE

Frank- I'd love to come and shadow you for a week.  I'd even pay you for the experience.   If your closing 20 deals per month- you are king!  Call me -I'm serios as much as I want to stay out of the cold I'm there!

Nov 23, 2007 11:54 PM
John Knauf
Valley Realty Associates - Harrisonburg, VA
Fantastic information. I have yet to have the short sale experience, but I have no doubt that your post will help me when I do. Thanks for putting it out there.
Nov 24, 2007 12:19 AM