Yet another story of a frustrated short sale transaction. This one shows in a concise way how to deep-six a perfectly straight forward short sale that benefits seller, buyer, and lender. The foul-up? Involving a well-intentioned but hog-tied real estate agent. Here’s why:
The story comes from yet another qualified buyer. This buyer is a cash buyer, the most efficient kind. They are also paying closing costs. Perfect.
After six months of negotiations that the buyers are not privy to, the transaction still remains in the lurch. Why? Because the listing real estate agent doesn’t have the connections at the lender to complete the negotiations. Involving two agents plus lender and buyer is a true recipe for failure. If the buyer had involved an investor-negotiator, chances are this sale would have been completed three months ago.
We do it all the time.
Distressed homeowners are mistakenly told that they need a real estate agent (or two) involved to accomplish a short sale. That is the kink here.
In order to efficiently complete a short sale, the end-parties need an experienced short sale negotiator and efficient marketing. Neither of those requirements necessarily require real estate agents, no matter how well-meaning they are.
Lenders are ‘encouraged’ to respond to purchase offers in a timely manner. That means that a cash offer from anywhere should be taken seriously by the lender. Now, the missing piece here is a negotiator that has experience and a working relationship with the loss mitigators at all 83 major lenders in the US today. No real estate agent can possibly have those connections and available time. They are concerned with their local market, not the financials of a major lender concerned with national financials and loss mitigation of their employer.
As the article points out, lenders are ‘encouraged’ to timely respond to qualified offers. Now, the reader needs to put themselves in the chair of the harried loss mitigator. Who are you going to respond the fastest to? An experienced nogotiator whose phone number you recognize and very probably have dealt with before? Or some Real Estate Agent in Resume Speed, Colorado?
The author of the response here misses a huge, critical point: The actual lender and/or servicer may follow a path of as many as eight different financial institutions. The REST Report, since it uses the bank’s own software, has all the necessary calculations that any servicer needs to grant a short sale and make the deficiency go away. When submitted as a legal document, the short sale package ensures that the servicer is not entitled to collect any fees or payments until a good faith negotiation takes place. All treachery on the part of the mortgage servicer is eliminated.
According to new, pending, Home Affordable Foreclosure Assistance guidelines (HAFA), once the lender determines the amount it will be willing to accept from a short sale, the borrower has 120 days in which to find a buyer for the property. That puts the marketing onus on completing the sale on the buyer’s agent. That’s where all the work is done anyway. I’ have never seen any positive report on HAFA. It was written by the banks. Go figure. Servicers don’t get paid for loan modification or short sale. They get paid to foreclose.
The distressed homeowner who needs an efficient short sale really should put their trust in the buyer’s side (read: the investor), not the listing side. The author here mistakenly directs the seller to a real estate agent who cannot possibly have the resources that an experienced investor/negotiator like the one I represent. That’s the way it is. Realtors sell houses – experienced investors negotiate away mortgage deficiencies.
Read more REST Report here
This YouTube video says it all. Go here: How to Get A Beneficial Mortgage Modification Now Please ‘Like’ the video, will you? That makes it easier for others to find.
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tags: do it yourself short sale, rest report, avoid foreclosure, stop foreclosure, prevent foreclosure, foreclosure alternatives, self negotiated short sale, negotiate short sale, investor negotiated short sale, discharge mortgage deficiency, homeowner negotiated short sale, hafa, home affordable foreclosure assistance,negotiate mortgage deficiency,
Originally posted 2010-02-21 15:44:22. Republished by Blog Post Promoter
