If you’re a listing agent or a homeowner in a short sale position, READ THIS BLOG, cause this one is for you.  Then watch the video.

We’re fortunate enough to work with many different types of clients.  Recently, we were approached about doing a show on HGTV about our work with first time homebuyers, which we’re very proud of.   We also work with various investors, big time investors.  I’m talking about some people who are serious about buying homes, to the tune of purchasing a home EVERY DAY.  These guys know what they are doing.

This particular investor that I am speaking of only purchases distressed properties and right now there are a lot of short sales on the market.  Short sales used to be the bane of my existence when I was was working with owner occupied buyers.  In case you don’t know, they take FOREVER to close.  I’m talking 60 days in a perfect situation, which few are.  In reality, you’re looking at more like 90-120 days.  You’re working on the bank’s schedule and since they’re taking a hit and up to their eyeballs with other shorts, you better have your act together when you submit you paperwork.

This particular investor hires (and pays for) his own third party foreclosure prevention company to handle all communication with the bank.   Their success rate for getting deals closed is around 90%.  Yes, you read that right 90%!

So,  AGENTS – if you want to work with our investor to sell your short sale quickly.  Do not, and I repeat DO NOT hire a mitigation company to handle communication with the bank.  We have our own and banks do not like to work with more than one party on a deal at a time.   Rest assured, when you work with us, you will get your full commission, unlike if you hire some other mitigators.    As with any short sale, there is a boat load of paperwork upfront, but we have systems in place to help make sure the team has everything they need to get the job done.  If you have a short sale, call us, we will probably buy it.

In this video, Dan and I are discussing short sale offers.  The key take away point of the video is, the highest offer  is not necessarily the best offer.  In a negative equity situation, the homeowner cannot, by law, walk away with any monies from the sale.   So, no matter how low the initial offer comes in, the seller should sign it and send it along to the bank to be negotiated.  The initial offer is just a formality and a way to kick off the back and forth negotiations with the bank and the negotiator.   When the two sides finally come to terms, the seller is presented with a letter indicating what type of agreement was reached for their final approval.  In the rare case where there is a deficiency, it will be clearly stated on the short sale approval letter.   If the terms don’t work for the seller, they may choose not to sign, and the deal is off.

Remember, these are CASH deals on our side, no financing is required and these are professional investors so waiting on the bank’s response is not a problem.  If it takes several months, no problem.  We’ll be waiting…

By Maxwell McDaniel // July 24, 2010

This post is in: Listings, Realtors and Lenders, Video