Yes A Bank Will Negotiate a Price Reduction on a Short Sale

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Real Estate Agent with RE/MAX Professionals, CT 203-206-0754 REB.0759001
https://activerain.com/droplet/527m

Yes A Bank Will Negotiate a Price Reduction on a Short Sale

We still have many short sales in Connecticut, and while their numbers are getting smaller they are still a strong part of the market. In my area of towns around a center hub of Waterbury CT, short sales accounted for almost 25% of all closings in 2016.

Yes A Bank Will Negotiate a Price Reduction on a Short Sale

I have one short sale going through the process in Watertown CT. We were under contract with 10 days after going on the market. The short sale was approved 2 1/2 weeks after all documents were sent to the bank, and then the buyer's did their inspection.

The property was found to have a cracked septic tank as well as suspicions that the leach fields were ready to collapse. Hard estimates were collected and we submitted a challenge to the lender for a reduction for the value of the repairs.  The buyers were not in a position to come up with an additional $30,000 to have the system corrected.

When making the appeal to the bank, the inspection report as well as the estimates for the repairs were submitted. At the top of each document was the State license number of each party who's reports were being submitted.

In addition, the listing would need to be corrected to reflect the failed system should the bank reject the appeal and the buyers were to pull out of the transaction.

After a reasonable amount of time, the lender came back with an acceptance of the reduction and a new letter was offered so that the deal could proceed to closing. New HUDs will need to be prepared once we are ready to close and contract addendums sent forward as well.

Working with experienced real estate professionals as well as a broker with a successful track record on short sales is a must for Connecticut home owners trying to avoid foreclosure. I am here to help Central Connecticut home owners through their issues and get a successful short sale.

 

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Do you know somebody who is behind on their mortgage and doesn't know what to do? I may be able to help them, especially if they are facing foreclosure!

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Whether looking to buy or sell, we service the Greater Waterbury towns of Beacon Falls, Bethany, Cheshire, Naugatuck, Middlebury, Southington, Thomaston, Waterbury, Watertown and Wolcott 

Ed Silva  RE/MAX Professionals,   203-206-0754

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Rainmaker
3,982,614
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

It does work best with someone that knows the ins and out

Mar 08, 2017 09:03 AM #1
Rainmaker
3,098,432
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

25% of all sales is a pretty high number, Ed. What was it at the low point of your market?

Mar 08, 2017 09:18 AM #2
Ambassador
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Ed good job in going to bat for your Buyer and getting the reduction.

Mar 08, 2017 12:06 PM #3
Rainmaker
2,113,377
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

It's so important to work with experienced real estate professionals! Happy to hear things worked out on this one!

Mar 08, 2017 12:23 PM #4
Rainmaker
2,791,645
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Ed, I am surprised to see that 25% of 2016 sales were short.  It makes a difference who buyers and sellers hire to represent them.  An inexperienced agent may have caused that transaction to go a different direction.  Well done!

Mar 08, 2017 01:07 PM #5
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Ed.  For major issues such as this that were unknown prior to signing the contract banks will re-negotiate.

Mar 09, 2017 05:44 AM #6
Rainmaker
3,000,766
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

It is actually great when a bank actually listens and makes those changes. Of course doing it right and including inspections with license numbers is the right way. Congrats Ed Silva 

Mar 09, 2017 05:07 PM #7
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

You were dealing with the voice of reason and they responded just as they should have. That is good to know that things turn out like they should, Ed.

Mar 09, 2017 06:20 PM #8
Rainmaker
3,205,097
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Ed, how sad to hear that a word I have erased from my vocabulary about three or four years ago is still rampant in your market. I guess Case Schiller's announcement about six months or so ago that Nationwide every market has rebounded did not get to go the to the greater Waterbury CT area and see how the market is doing....

Mar 09, 2017 06:36 PM #9
Rainmaker
1,922,053
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Ed - congratulations on getting it done.  It works when buyers and sells work with short sale experienced professionals.

Mar 09, 2017 07:27 PM #10
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Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

Excellent information Ed. This is an unfortunate but real situation.

Mar 09, 2017 07:58 PM #11
Rainmaker
2,050,768
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Ed, Good job by you and certainly any time a short sale is involved an experience realtor is critical to have on your side. 

Mar 10, 2017 01:53 PM #12
Rainmaker
1,792,871
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Ed, you are the epitome of a good CT short sale agent for your sellers and this instance was a tough one I am sure...Congrats.

Mar 10, 2017 06:35 PM #13
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