Bergen County NJ – We are explaining the steps to approving a short sale in 90 days or less. Today, we’re going to explain Step 4: Use the BPO information and knowledge of the loan owner’s short sale guidelines to force the lender to approve the short sale.
After doing the steps detailed in the previous posts your agent has two important pieces of information now.
First, they know who owns the loan. They know if it is owned by Fannie Mae, Freddie Mac, FHA, VA, or if it is a portfolio loan or “Sliced and Diced.”
Second, they know the BPO value. Now, your agent is ‘loaded for bear.” They are ahead of 90% of all the other realtors negotiating short sales. As a result they will get some respect from the short sale negotiator at the lender.
They will be able to hold the lender accountable for their actions. They can use the short sale guidelines for that particular loan owner to force the lender to approve the short sale.
Here is an example of how that is done. Let’s say that a short sale property is selling for $278,000. The loan is an FHA insured loan. The home was marketed for 3 months before it sold.
The FHA appraisal says that the home is worth $290,000. FHA’s short sale guidelines stipulate that the lender should approve that short sale. Why?
Because FHA’s guidelines specifically instruct a lender to approve a short sale that will net them 88% or more of the FHA appraised value. After all the sales costs, the lender will net more than 88% of the $290,000 FHA appraisal value.
But, let’s compare this with what might happen to an unprepared realtor who doesn’t follow this process to approve short sales.
The negotiator could tell the realtor that they will not approve the short sale unless the buyer agreed to pay $290,000. Short sale negotiators do this all the time. Yes, it is an abuse of power but it still happens.
This realtor has worked very hard to sell the home for as much money as possible. However, the buyer refuses to pay more than $278,000 for the house. This agent can’t force them to pay more for the house.
The short sale negotiator tells the realtor that they will “close the short sale file” in a week if the buyer doesn’t agree to pay $290,000. This is another tactic short sale negotiators use to bully uneducated realtors who don’t understand short sales.
The buyer doesn’t raise the offer and the home is foreclosed upon a few months later. It sells for $260,000 after the foreclosure. Your bank loses $18,000. You get a foreclosure on your credit report.
Ouch! This is why it is so important that the realtor you hire to short sale your house know what they are doing.
Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at email@example.com. 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:
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Bergen County 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. firstname.lastname@example.org
James Lockard specializes in loan modification assistance and short sales in Bergen County New Jersey. Bergen County Loan Modification Help, Bergen County short sales, Bergen County Short Sale Realtor, Short Sale Realtor, Bergen County NJ Short Sales, Bergen County Realtor
Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.
James Lockard, RE/MAX Properties, and the Stop Foreclosure Institute are not associated or affiliated in any way, shape, or form with the government. Our services have not been reviewed, endorsed, or approved by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
If you stop paying your mortgage, then you could lose your home and damage your credit. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
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.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Lockard’s personal views and do not reflect the views of RE/MAX Properties.
This information on Step Four To Get A Bergen County Short Sale Approved In 90 Days Or Less is provided as a courtesy to our viewers to help them make informed decisions.