Ridgewood NJ 
I cant process this short sale without the TPS form filled out with the sellers full name, the short sale negotiator told him. But, based on my calculations, this short sale will help your company avoid a $17,000 loss, he replied.
So, youre telling me that unless I can get you the TPG form filled out, then you will reject this short sale and subject your company to a potential $17,000 loss,?
Yes, you are right, she replied. But $17,000 is a lot of money. Dont you agree?, he replied back. I dont care about the money. The TPG form is company procedure, she said.
The story above illustrates just how crazy short sale lender bureaucracy is today. The guy who told me that story couldnt remember the form name.
He said it was about as dumb as the infamous TPS Reports from the movie Office Space. The reason is because many banks turn down short sales only to lose more money thru a foreclosure.
As an example, the house in question sold for $117,000 about 12 months ago. Today, comparable homes are selling for $90,000 (not a typo.)
In that 12 months, the homes value dropped by $27,000. The banks foreclosure process was on track to foreclose on the house in 6 months. It would have taken another 3-6 months to sell the foreclosed house.
That means the value would have dropped by a minimum of three quarters of $27,000. That mean the lender would have lost $20,000 because they turned down the short sale offer.
Here is what was wrong with the TPS form. One form had John Arthur entered for the sellers name. The short sale negotiator was going to reject the short sale unless his name was changed to John W. Arthur II.
Everyone else was ok with the existing paperwork. The title company, the buyers mortgage company, and everyone else.
The bottom line: A large, nationally know lender was willing to risk losing $20,000 because they needed a document to be perfect. Nobody ever asked the stockholders for their opinion.
Thats what short sale bureaucracy does. It hurts the economy. It is also why you need an experienced, competent short sale agent. You need someone who knows how to work with the bureaucracy and get things done.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at jlockard@remax.net. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail. If you prefer, then you can call me at (201) 825-6600 x343 or on my cell at (201) 674-3114. If you prefer, just fill out the form by clicking the words, Contact Me below: Contact Me
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Ridgewood Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, James Lockard.
James is a Real Estate Agent at RE/MAX Properties.
Phone: (201) 825-6600 x 343 Cell: (201) 674-3114. jlockard@remax.net
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Lockards personal views and do not reflect the views of RE/MAX Properties. This information on Gainesville Short Sales: Will your short sale be killed by bureaucracy is provided as a courtesy to our viewers to help them make informed decisions.
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