4 step: Negotiator
The biggest problem with short sale negotiations has little to do with the buyer’s agent and everything to do with the listing agent. If the listing agent is incompetent and misleads on the situation, coupled with weak short-sale negotiation skills, nothing short of a miracle is going to help. We know that, as we have represented many purchasers in the past and our hands were tight as we couldn’t take action ourselves. So if you have not called us yet, make sure to only get an experienced short sale Realtor.
It’s about your future, so you should call the best short sale Realtor around not your golf buddy being part time in real estate. I even encourage you to pick an experienced real estate broker, not just an real estate sale’s agent. And sometimes it can be easier to talk about sensitive financial things with a neutral person than with your buddy. If he/she is as professional as he/she claims to be, he/she would definitely understand that. If not, it would be good to know.
By the way did I mention our contact info already?
Most common Short Sale Negotiation Problems
Many lenders do not return phone calls. Banks will call the listing agent when it’s convenient for the bank to call and when they have something to say, providing they haven’t already lost the file or laid-off the previous negotiator.
- If your file is incomplete, it’s entirely possible your request for a short sale will fall to the bottom of the pile. That’s why we require a complete file from the beginning.
- You will start with the loss mitigation department and talk to a different person each time you call.
- If foreclosure is looming, ask for the file to be escalated to a negotiator immediately, but expect that request to fall on deaf ears.
- The seller must be facing a hardship. If you can’t substantiate the hardship, chances are your short sale will be not be approved.
- Send comparable sales that support the offering price because if the bank thinks it can get more money through foreclosure proceedings, it won’t entertain offers at list price.
Negotiating With the Short Sale Negotiator
Don’t be astonished if you end up dealing with more than one negotiator. I don’t know if negotiators quit mid-stream because they can’t handle the pressure or if the bank reassigns them to another position because it’s short-handed. Much like a projectionist at the movie theater being forced to sell popcorn in the lobby, your negotiator could be out in the bank’s parking lot directing traffic the next time you call.
- Get the name, phone number (and, if possible, email) of the negotiator.
- Withhold your disappointment if that negotiator is no longer available when you call. Get the data on the next person.
- Find out the bank’s objectives. Ask pointed questions such as “Is this offer feasible?” “Does your bank ever do short sales?”
- Don’t take no for an answer. Ask for a supervisor. Be persistent.
- Be prepared to state your case in strong terms that the bank will understand.
- As a borrower, don’t talk to the bank anymore yourself. You should have hired an experienced short sale Realtor and he should do things for you. If you are in default and get collection calls, just hang up or blacklist their number.
Be Relentless in Short Sale Negotiations
The bank will be relentless, so you better be prepared to fight with the same set of tools. Be polite, but be firm and don’t back down. Most likely, the bank will want to negotiate the real estate commission as well, plus there are cases where the bank decided at closing to renege on the promise to pay a commission. As an experienced short sale Realtor, I and my partner knows how to treat banks and what to say and what not.
- Be aware that the bank isn’t forced to agree to anything.
- Ask for every agreement to be in writing, but don’t be surprised when you don’t get it.
- Make notations and keep a record of every conversation, with whom, and the date and time. You may need it in court. Sometimes the loss mitigation department and the foreclosure department do not work together. If you are seeking a short sale and get notice of a court appointment to set the foreclosure auction, the judge might be interested to know that. Just write to the court who you listed with and what the situation is. Judges don’t like banks clogging the legal system with foreclosures when other ways are feasible. You don’t necessarily need an attorney for that.
- Ask the bank for a timeline and when it might be a good time to call back. Then call again a few days early.
- When you repeatedly receive voice mail, leave a message and call again just before lunch, right after lunch, just before the day ends and again in the morning before the day begins.
I’d love to see the day when banks get their acts together to deal with short sales on a practical level, but until that day comes — like when pigs fly — don’t let the day-to-day irritations annoy you or your broker and keep on making those calls.
100% success rate:
We closed 100% of short sales successfully when brought to action in time and we decided a short sale is the way to go.
In 4 cases, attorneys advised clients for bankruptcy filing due to other issues arising after we took the listing, but no short sale was ever lost to an unpredictable foreclosure auction
Statistically the 3rd short sale offer on a property gets approved by the bank. Sometimes banks need some time to get accommodated with the current market situation. But we see significant improvements here.
Contact info if you missed it:
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