MY 1ST SHORT SALE

By
Real Estate Agent with Keller Williams Select Professionals

I am working on my 1st short sale, and it is a challenge.  I have been told it would be.  I have submitted the workout package about 3 weeks ago, been calling once a week since, the mortgage company finally confirmed that they recevied the workout pkg, the 1st time I called they told me it would take 3-5 business days before they would even confirm receiving it.  Ok got that out of the way.

Next I was told it would take any where from 60 to 90 days it from the time they received the workout package before it would be  assigned to someone in the loss migation department. Mean time month # 3 is fast approaching since a payment has been made. I am concerned that it would be foreclosed on before having a chance of being shown and an offer submitted, which I did show it and thought I was going to have an offer, but they changed their minds.  Thanks for letting me vent a little.  I do like challenges!!

ANY ADVICE AND COMMENTS WOULD  BE GREATLY APPRECIATED!!!!

Comments (4)

Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

your package is incomplete. You need to submit a purchase offer and a HUD-1 that tells them how much they will net if they approve the sale. You are basically asking them to accept less without giving them any numbers.

Here's what you should do:

1. List the property at the high end of the comps. Every week, reduce the price in such a manner in which you will be at the low range of the comps within 4 weeks. If that doesn't work, week 5-7 should be below the lowest comps. You want to be on the high end first just in case the bank BPO comes back high, then you can argue that you had it listed at that price with no offers.

2. When you get an offer. Have the buyer's agent lowball the lender. This will be anywhere from 10-30% below the lowest comp you can find depending on home prices in your area. For example, if homes are 100k, then go 30%. If they are 200k, then 20% and 300k, then 10%. You'll eventually get a feel as to what you can get away with in your area based on home values. Have the seller pay for everything and ask for 3% for closing cost.

3. Pad the HUD-1. In other words, increase fees, create fees and understimate how much the lender will net. For example, if you think that the lender will net 280k, put 270k. Make sure you include all expenses, such as HOA fees, deliquent HOA fees, liens, attorney fees/escrow fees, etc.

4. Now submit the entire short sale package with financials, listing agreement, hardship letter, purchase offer, HUD-1, release of authorization, etc.

5. Make yourself the point of contact for the bank's BPO. Give the BPO the lowest 3 sold comps and 3 active.

These are the basics. As you master it, you will be making more money than retail listings.

Good Luck. If you need be, I can negotiate the short sale for you and get paid through the buyer as to not interfere with your commissions. In fact, I might just increase your commissions.

 

Apr 25, 2009 07:53 PM
Darlene Wurth
Keller Williams Select Professionals - Rome, GA
Realtor/REOS

Thank you Amiri for your comment and advice I appreciate it

Apr 27, 2009 06:30 AM
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

not a problem. Feel free to ask questions and I will answer them for you. Also if you want someone to go over your experience with you to see how it could be modified to your advantage, let me know.

Good Luck.

Apr 27, 2009 07:08 AM
Sidney Jimenez
Keller Williams - Miramar, FL
CDPE, Short Sale Expert, 954-665-9449,

DARLENE,

Lenders will not approve a Short Sale without an offer attached to it. You will need to proceed with the listing as your would ordinarily would. The pricing is very important and you will need to price the property in accordance to the latest value points in your area. Don't price overprice the home with the idea of getting as much as is owed on the mortgage. Those two number are relevant to each other. Once you price the home then you will want to lower the price about 3% every couple of weeks until the activity picks up and you get an offer. THEN you submit all the paperwork you had originally submitted to the lender. Good Luck!

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Apr 27, 2009 09:00 AM