Short Sale Negotiator, Then and Now
We have worked with Short Sales now for over 15 yrs – long before it was fashionable. When we began working with sellers, Investors were watching the Court records for anyone who missed a Mortgage payment. Then they would track down the homeowner. The Investor would have the homeowner sign a document giving the Investor permission to speak to the lienholder.
The Investor would list the home through a Realtor, create an offer to submit to the bank, resell the home so that another Buyer would be ready to sign at closing along with the Investor. Missouri does allow for double closings.
Short Sale Negotiator, Back Then
Investor sees an opportunity for a Short Sale for a $200,000 home. He gets approval to speak with the lienholder. He submits an offer from him of, say $110,000. At the same time, he lists the home for a Short Sale for $170.000. A buyer for $170,000 is secured. The short sale is approved by the bank. On a specified date, the Investor and the legitimate buyer close at the same Title Co at the same time.
The Buyer then owns the home for a $170,000 – 15% below market or the loan cost. However, the Investor walked away with $60,000 in his pocket. Thus, the bank lost a great deal of money.
Sometime around 2007 or 8, the banks realized how much money they were losing and made some new rules.
Short Sale Negotiator, And Now
Now, banks require that a Realtor list the home for around 84-85% of market value. In the case of that $200,000 home, the buyer would pay around $170,000 and the bank would recover the difference (of course minus closing costs etc).
There is a process recognized by nearly all banks, though some banks have a few extra documents to complete and have a few different steps to take in the Short Sale process.
Short Sale Negotiator, is QUALIFIED
All Realtors are NOT qualified to handle Short Sales. So far, the Real Estate industry has not made that distinction, however, we hope that will be the case soon.
Processing paperwork is a small step in the Short Sale process. This is what most Realtors handling Short Sales do. We have also experienced Bank Negotiators, representing the seller. This is always the tough part. When the bank asks for thousands of $ for you to complete your Short Sale, you want a Negotiator on your side to counter that.
When the bank denies the Short Sale, you want a Negotiator on your side to figure out what might allow the bank to reconsider.
Short Sale Negotiator, Discovering What May Help
An example of that was when a young couple was asked to bring $20,000 to closing to pay for the difference between the legitimate offer and the loan amount. In that case, the couple did have savings, but we found that they were paying thousands of $ to help the wife get pregnant. They needed all of their available funds. The bank settled for $500.
In another case, the bank wanted $14000 to settle. We discovered that their 18-month- old baby had leukemia and they were paying for additional medical expenses and there was also a chance they would have to move to get the specific care their baby needed. The bank settled for zero contribution from our sellers.
Short Sale Negotiator, There For You
We have actually had Realtors argue with us to let them close and just let the seller pay the amount requested. We always prevail and have always either gotten a reduction or have had the contribution amount removed entirely. The bank or Government entity will usually listen to a valid Counter.
We are not lawyers, but we are very experienced Short Sale negotiators who LOVE helping our sellers out of this stressful situation where they no longer have the money they need to pay their mortgage.
By the way, Banks no longer accept these double closings. It is forbidden in writing.
If you are thinking about a Short Sale on your home, email firstname.lastname@example.org and let’s help you get moving.