Posted by Elizabeth NJ on May 10, 2006 at 10:15:00:
Hi Rick,
Thanks.
It’s true most banks won’t deal directly with an owner already in default. That owner has already lost credibility with the bank.
Regards.
Elizabeth
Short Sale - Seller asks - Posted by Tom NH
Posted by Tom NH on May 09, 2006 at 12:07:00:
…why can’t I"
I didn’t know how to respond to that question right away. I’m going to call her later on tonight to send her the P&S, along with what I found for comps in the area, and estimate of repairs. I’m going to also tell her that she should send a hardship letter along with the P&S, pictures of the house, estimate of repairs, etc.
Has anyone ever let the seller deal with the bank, but help them along the way???
- Tom NH
Re: Short Sale - Seller asks - Posted by Max-Va
Posted by Max-Va on May 09, 2006 at 13:39:33:
What is your offer? The lender may only drop 5% is that a deal? Are you going to accept what ever is offered? Do you trust the homeowner to negociate this for you?
I have done several short sales. I get the seller to sign an authorization to release infomation so I can deal with the lender. This way I am in control of the deal. A loss mit rep probably has 300-400 files on their desk that they are working. They want to deal with knowledgeable people that know what they are doing. They don’t have the time or paitence to walk everyone thru the process. I would suggest you take control of this yourself and you may find a deal here.
Hint: start with a low offer so you have room to compromise on price.
Re: Short Sale - Seller asks - Posted by Elizabeth NJ
Posted by Elizabeth NJ on May 09, 2006 at 12:27:27:
I never let a deal out of my control. I’m very hands on from start to finish. That way, if there’s an error, or I get screwed along the way, it’s entirely my fault. And no one is going to work as hard as me to get my deal to the table.
Your posting is a little garbled, but I understand that your seller wants to negotiate with the bank herself, correct?
If you have a contract to buy this property, you should have your seller execute an “Authorization” that permits the bank or its representatives, attorneys, etc. to communicate with you regarding her account.
Again, I think it’s a big mistake to permit the seller to negotiate down the lien.
Are you unsure or uncomfortable about dealing with the bank yourself and taking control of this deal?
why do I have to call, why can’t she? - Posted by Tom NH
Posted by Tom NH on May 09, 2006 at 12:07:57:
Sorry screwed up the title.
Re: Short Sale - Seller asks - Posted by Tom NH
Posted by Tom NH on May 09, 2006 at 14:58:26:
I want to deal with the bank myself. I’m going to tell the seller what my intentions are (buying low and wholesaling to a rehabber), and that in order for this deal to work out, that I should be the one negotiating with the bank, so that I can send them the short-sale package explaining the reasoning for my offer. If the owner starts barking at me about it…“NEXT!”
Thanks for the replies!
I think his question is… - Posted by rick m
Posted by rick m on May 09, 2006 at 22:31:43:
Hi Elizabeth,
Great news on your prior post btw.
I think his question was how to answer the owners objections. In other words, what do you say when the owner says “Why can’t I just negotiate the loan down myself”.
I like to counter this objection, and I get it daily, with “most banks won’t deal directly w/ the owner because if they did, word would get out and nobody would ever pay their mortgage”. This usually works but I would love to hear others counters for this objection.