I'm just a newbie, but I would resubmit!! If you were selling a house and got an offer, would you take that first offer? Just something to ponder.
We, too, are about to submit and expect for the first offer to be declined. We will resubmit until we cap our limit of it being worth the trouble. Some short sells just require a four letter word "N E X T"
Ask the Loss Mit Rep the question. If you press them they will usually give you some indication as to what the bank is trying to accomplish price wise.
I submited for 66 and the rep said it was denied and to submit another offer. So then I submitted for 70 and the rep said it was denied and to submit another offier. At this point it was two weeks between submitting and getting the answer. The rep said that he could not tell me what the bank was trying to get, or what might be an acceptable offer, i pressed and drew out the conversation until he said that the bank was looking for 90. 90 was not even in the realm of reality. so I told him thank you very much and to call me if they changed their minds about the 70 offer.
Negotiation isn't simply throwing together an offer, having it rejected, and submitting another offer(s) until time runs out.... only to learn that the parties are worlds apart at the expense of the distressed homeowner.
If you've observed rudimentary negotiation practices, your initial proposal won't be so far off the mark..... and would only require a minor tweaking.....
"in either case, you're at the mercy of either the lender or the homeowner when it comes to a SS."
To a degree, that's true, especially in the early stages. That's why the prequalification process is so important. Properly done, it saves time by identifying the parties' intent/expectations... and doesn't gum up the woprks for the distressed homeowner who would otherwise be free to explore other options.
You are absolutely correct. The learning process never ends.
I had a NJ client walk in last week as I was working a short from Ohio. She asked, 'how do you remember the foreclosure laws and practices of each state... for each mortgage lender?"
I don't. Nor could I. Things change. But I've learned to embrace change and have learned to find the info I need.. the art of information gathering (part of the negotiation process) is key to successful shorts.
Why did the Homeowner go bankrupt? Did you adequately address their concerns? Did you keep them informed?
Was a ss the best option for them?
no need to answer... I'm just blathering.[ Edited by TheShortSalePro on Date 06/11/2004 ]
Well, our first short sale would have been accepted had it not been for the "intelligence" of the homeowners to decide and follow their lawyer's advice and file bankruptcy.
We have found that lawyers don't necessarily want to act on the behalf of the distressed homeowner, but rather their distressed pockets. At least that was the case here.
So in a previous post I had, I took your advice and we sent a postcard to the lender basically indicating we're still interested in the property and keep us in mind.
The second SS was a well researched effort and proposal. Believe me, we are extremely thorough. You can't win them all right? But, we are considering resubmitting the HUD 1.
The third? Finally an acceptance. It'll be nice to see the fruits of our labor in equity and in cash at the close of this deal.
Thanks for the replies, always nice to talk short sales with a Pro.
I put together a good package. The home owner had walked away and I told him that the SS was a long shot but that we had nothing to lose. Unfortunately he had a nice middle class house in a nice middle class neighborhood. The really unfortunately part was that the lender called the owners directly for the BPO and the owners set the appointment and met the agent. This all happened in two days and I found out after the fact. I am sure the homeowners pointed out ever nice feature of the house. This was a Household loan and all they ask for is the Settlement Sheet and a P&S. I sent a full package but I think it shows thier mindset. Anyway, I did not jerk around the home owner. I told him from the beginning that the numbers were going to be tight and that there was a good chance that it would not work out.
I'm just a newbie, but I would resubmit!! If you were selling a house and got an offer, would you take that first offer? Just something to ponder.
We, too, are about to submit and expect for the first offer to be declined. We will resubmit until we cap our limit of it being worth the trouble. Some short sells just require a four letter word "N E X T"
Good luck
Ask the Loss Mit Rep the question. If you press them they will usually give you some indication as to what the bank is trying to accomplish price wise.
I submited for 66 and the rep said it was denied and to submit another offer. So then I submitted for 70 and the rep said it was denied and to submit another offier. At this point it was two weeks between submitting and getting the answer. The rep said that he could not tell me what the bank was trying to get, or what might be an acceptable offer, i pressed and drew out the conversation until he said that the bank was looking for 90. 90 was not even in the realm of reality. so I told him thank you very much and to call me if they changed their minds about the 70 offer.
Brenda
thanks for the feedback!
i'm going to do it and see what happens.
Negotiation isn't simply throwing together an offer, having it rejected, and submitting another offer(s) until time runs out.... only to learn that the parties are worlds apart at the expense of the distressed homeowner.
If you've observed rudimentary negotiation practices, your initial proposal won't be so far off the mark..... and would only require a minor tweaking.....
[addsig]
we did our homework on the initial offer. my guess may be:
1. the homeowner has only missed a few payments and is not in real danger yet.
2. the lender doesn't want to ss just yet.
in either case, you're at the mercy of either the lender or the homeowner when it comes to a SS.
"in either case, you're at the mercy of either the lender or the homeowner when it comes to a SS."
To a degree, that's true, especially in the early stages. That's why the prequalification process is so important. Properly done, it saves time by identifying the parties' intent/expectations... and doesn't gum up the woprks for the distressed homeowner who would otherwise be free to explore other options.
this was the second time we've submitted a SS. the first declared bankruptcy and the second said no. luckily the third said yes.
anyway, it's a learning game. no matter how much you know, there's still so much to learn.
thanks SSPro.
You are absolutely correct. The learning process never ends.
I had a NJ client walk in last week as I was working a short from Ohio. She asked, 'how do you remember the foreclosure laws and practices of each state... for each mortgage lender?"
I don't. Nor could I. Things change. But I've learned to embrace change and have learned to find the info I need.. the art of information gathering (part of the negotiation process) is key to successful shorts.
Why did the Homeowner go bankrupt? Did you adequately address their concerns? Did you keep them informed?
Was a ss the best option for them?
no need to answer... I'm just blathering.[ Edited by TheShortSalePro on Date 06/11/2004 ]
Well, our first short sale would have been accepted had it not been for the "intelligence" of the homeowners to decide and follow their lawyer's advice and file bankruptcy.
We have found that lawyers don't necessarily want to act on the behalf of the distressed homeowner, but rather their distressed pockets. At least that was the case here.
So in a previous post I had, I took your advice and we sent a postcard to the lender basically indicating we're still interested in the property and keep us in mind.
The second SS was a well researched effort and proposal. Believe me, we are extremely thorough. You can't win them all right? But, we are considering resubmitting the HUD 1.
The third? Finally an acceptance. It'll be nice to see the fruits of our labor in equity and in cash at the close of this deal.
Thanks for the replies, always nice to talk short sales with a Pro.
I put together a good package. The home owner had walked away and I told him that the SS was a long shot but that we had nothing to lose. Unfortunately he had a nice middle class house in a nice middle class neighborhood. The really unfortunately part was that the lender called the owners directly for the BPO and the owners set the appointment and met the agent. This all happened in two days and I found out after the fact. I am sure the homeowners pointed out ever nice feature of the house. This was a Household loan and all they ask for is the Settlement Sheet and a P&S. I sent a full package but I think it shows thier mindset. Anyway, I did not jerk around the home owner. I told him from the beginning that the numbers were going to be tight and that there was a good chance that it would not work out.
Brenda