Wellington Strategic Short Sales Do Close- Spinning and Negotiating Short Sales For Your Clients!
No, strategic short sales don't get approved for the HAFA program. Yes, strategic short sales do close.
Yes, strategic short sales are often harder to push through because you have to be very strong with your negotiation skills.
And you can NOT give up if you want to be successful in strategic short sale closings. 
Really, strategic short sale is almost an oxymoron.
This is because in all cases the hardship is the mere fact that your property value plummeted here in Florida and was cut in half, at least.
When you do an intake evaluation of your client's situation you are looking for a story that you can negotiate with the banks with.
We just closed on two short sales last week that were both investment properties and owned by the same persons.
The owners had purchased these two units and had them both rented out. They made their mortgage payments on time.
They were not late in their mortgage payments. The rents did not meet the mortgage payments any longer. The owners were forced into retirement due to the economy. However they do have savings. They have a rather sizable retirement account.
So what is the story that can be presented with this information? This is a strategic short sale on the surface and three attorneys told them that they could not do a short sale and that they would need to sell the properties and pay the difference in cash of what they owed to the banks.
But we saw a different case. We saw the story of this couple in their late 60's who now need to draw on that retirement account in order to pay their living expenses.
Let's just say that for argument sake ( we won't disclose actual amounts) that the saving and retirement accounts had $700,000.
So now let's say that the couple who is about 65 years old both live to be 85 years old which is very likely nowadays. That is 20 years that they have to live on $700,000. Sounds like a lot of money until you do the math. That is $35,000 per year for the two of them.
What if one of them becomes ill or has to live in a nursing home at some point in time. What if they need to get surgery for one reason or another. How many of us can live on $35,000 a year for two people? So this would become our negotiating strategy.
The sellers know that they will have to contribute some amount of cash- the amount will be determined when we begin to negotiate with the bank.
We get offers on both of the properties within about a week of each other, the houses are on the same street close to each other. We process the short sale packages and are quickly met with third party companies working on behalf of the lender and this is a sure sign of trouble up ahead. This third party after they receive the offers on these properties calls the sellers and tells them to do a deed in lieu instead of a short sale because a short sale has "so much paperwork"! This of course was the beginning of more issues than we can even write in a post.
Finally we get to the end of this drawn out process wherein the sellers were given the third degree on more than one occasion.
We finally get an approval but the approval did not release the sellers of the further obligations under the note. In fact, the bank was reserving the right to seek a deficiency. This is also normal behavior by the banks for strategic short sales.
We asked them what would it take to get rid of the deficiency clause and we were told it would be $6000 cash to closing. OK, that can be done. We proceed to the next steps in getting the release when our sellers get a call from one of the managers at the bank who tells them she wants to see their retirement account again. They send it to her. She then calls them telling them that in order to make the deficiency go away they will have to pay $300,000 to the bank. Well, that then would not be a short sale! The amount was the loan payoffs of the properties after the buyers paid for them!
We did not give up. The sellers did not give up. We then explained the math to this person. $400,000 which would be left divided by the 20 years left of life expectancy would be $20,000 per year for this couple to live on! After much back and forth, explaining and negotiating, this person was able to get us an approval with full lien release and NO deficiency for a payment of $10,000 per property from the sellers.
The only way that these types of strategic short sales will work is if you negotiate them and the sellers know, understand and are willing to contribute in one form or another but mostly with cash contributions to get the deficiencies removed. You can not be an order taker or a "yes" man for the banks. You have to spin the story to suit your sellers' best interests and then go for it will all the energy and tongue biting you can muster.
Two short sales closed- happy sellers- happy buyers- happy agents!
Call your Wellington Short Sale Agents- Nestor Gasset and Katerina Gasset at 561-753-0135 to find out about your foreclosure options.
IMPORTANT DISCLOSURE:
*Seek competent legal counsel and tax advice for any real estate transaction. International Properties and Investments , Inc. is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit. *
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What is a Wellington Short Sale?
Wellington Florida Short Sales - What You Need To Know - Part 1
Wellington Florida Short Sales- What You Need To Know About Short Sales - Part 2
Wellington Short Sale agents- Short Sale questions to ask agents.
Copyright © 2011 By Katerina Gasset, All Rights Reserved.*Wellington Strategic Short Sales Do Close- Spinning and Negotiating Short Sales For Your Clients*
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