Re: Seller needs short sale help urgently - Posted by Eric Woolhiser
Posted by Eric Woolhiser on March 30, 2006 at 04:46:41:
Actually, using a REALTOR can be your best option.
Before I get into that though, understand that if you are paying your loans, the bank has little incentive to work with you. As far as they are concerned you are a perfoming asset.
If your second is with a different bank, you can put the screws to them more easily because they will be wiped out in a foreclosure.
Getting back to using a REALTOR®: Since you already know that you have no equity, your goal is to be able to get to the closing table without also bringing a checkbook to make up the difference between what is owed and what the property sells for.
If you use a REALTOR®, you must use one that knows how to short sale! Very few do. When you do find one, the REALTOR® will normally get a full 6% commission, and it just adds to the bank’s loss.
A novice REALTOR® will just take what’s owed, add his comission, and end up overpricing your house and just wasting time.
One that knows short sales will price the house for what it’s worth and present the best offer to the banks. The banks like to know that a professional has done his level best to market the property at the right price, and has produced the best offer.
Suppose your first and second lien come to 150, and you get an offer for 100. The REALTOR gets 6, and the bank gets 94 for a loss of 56k.
Those are often acceptable numbers to the bank.
The keys will be a hardship letter, documentation of your income, and a significant change in your life that shows your income was damaged since you applied for the loan. Also the threat of bankruptcy.
Would you like a referral to a competent REALTOR® ?