Help with Short Sale "Positioning"
I recently submitted my first short sale package to a rather large bank. My initial conversation with them on the phone was very congenial and they requested specific information -- easily provided as the owners are working well with me.
However, their contact back with me was rather contentious -- suggesting that I had no business presenting to them some of the things I presented. In my package, I made estimates of the bank's costs to hold the property through the foreclosure process, damages, lost interest costs, attorney fees, realtors commissions, discount to market for REO sales and courts costs, etc. trying to come up with a NET value to the bank if they hold to sheriff's auction.
I then gave them my blanket offer in excess of the NET I built above.
Their being offended at my process was surprising -- they said that they know quite well what their costs are to take a property through foreclosure and don't need me telling them that (and that my estimates were grossly overstated).
They requested I come back with a NET sheet based on my sales comps, minus my closing costs to do the deal (pay off taxes, repairs, etc) and that they would review it based on that kind of submission. They also wanted to see me get a letter from the 2nd mortgage company based on what they would take prior to rendering an opinion on their first position.
Did I really screw up in my first NET approach to the bank or is this just their NEGOTIATING/POSITIONING to get me to up my offer? I expected some of the latter -- but not the "offensiveness" based on my earlier numbers. Is this standard operating procedure or common?
I understand a bank never likes to admit they will be losing money -- so I can understand being offended by that, but not by my approach. Any thoughts?
sounds like someone at the bank refuses to think "out of the bax" & is a little "touchy"
it happens all too often, when you run into a clerk on a power trip.
However, remember that you are asking for their assistance and use the "what do you need from me to get this approved?" approach". Usually this opens doors and they become more cooperative - sounds like you know what your next steps are...
If you run into trouble go back to them with the "I tried to get this ________as you requested, but am having trouble, do you know of any other way we can work together to get this approved?"
As I'm sure you know by now, once they're working WITH you, this get done much faster. good luck