Time for this weeks session on Short Sales. remember before you begin working this part f the business you are responsible for contacting an attorney in your state to discuss the leagal ramifications and issues for youand your client...
Short sales require the bank to cooperate with you and your client but do not expect them to just say yes....
Previously we covered the basics:
1. CMA showing the house's value
2. Financial Statement from the home owner
3. Hardship Letter explaining what happened
4. Release letter to allow the lender to speak with you directly
Once all of these pieces are in place now you get to begin the real fun. Convincing the lender using your negotiationg skills to agree that it is the lender's best interest to sell the house at a loss. Thus will take some persisitance and follow up and a big dose of patience. Never and again I repeat never statrt the lisitng and selling of a property under the assumption or presumption that the bank will agree or accept the lower offer. Have the sales price and necessary and customery fees built into the sales price and have the bank in agreement to accept this Net Sales Price as a payoff of the mortgage and a release of the lien.
Expect the lender to drag their heels on this...remember you are having to convince the lender to lose money and allow your client to avoid foreclosure....make up a balance sheet for the lender to "SEE" what they may save in the long term if the owner does go into foreclosure....
Always remember that this process requires time and effort but in the long run there is $$$ to be made
If you know of someone in Middle Tennessee trying to avoid foreclosure please give them my information!
Paul Moye
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