I know that the big buzz word in our field has been preforclosure short sales....where you convince the home owner to list the property with you and then attempt to sell it for less than what is owed on it. My experience has been that the loss mitigation departments of the lending institution are so overwhelmed by the sheer volume of defaults and preforclosures that, they have little time to negotiate short sales and that they need time to evaluate the borrowers requests for a short sale.
What are you, or have you been doing to decrease the lenders time to respond on your short sales offers in order to complete the sale within the buyers time line (and contract time line) to move into the home. My first one took about 4 months, from the date of acceptance to actual close, this was about 5 years ago. It was a WaMu default, and the departments within WaMu had very little communications with each other , so by the time the short sale figures and the HUD were approved and the close by date had been set, I received notice that we needed to close by a certain date, that date had already passed or was fast approaching, and the buyers lenders would not be able to close that quickly. So we had to go back several times to WaMu and renegotiate a new close date, each time the payoff was different so the figures had changed and had to be renegotiated as well.
One it was all said and done, I ended up having to adjust my commission to allow the seller(borrower) not to have to come to the closing table with money out of pocket.
Please let me know some of your short sale horror stories and your remedies to make your future short sales more rewarding and profitable.
as always thanks for your input.
Armando
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