Here’s another example…the agent stated this as it relates to his office working for banks wanting to move forward w/ ss:
"Your assumption is correct. They are not just dealing
with the bank, but they are working for the bank. The
bank contacts and hires the office to try and prevent
foreclosure either by
A) refinancing, or ss
Getting access to the house prior to it going on
the market is not possible via legal means.
It is my understanding that for ss, buyers have to
submit reasons how they came up with their offer
price, if it’s lower than the listing price. I’ll
have to double-check this though.
Agents market through the MLS. However, agents let
other agents know what deals they are working on
before the get a listing contract signed. Thus, your
advantage would be having me communicate with the
other agents to find out what current ss projects they
are working on before they get listing contracts
signed. Bidding wars are a natural occurence of
bargains and is something you should be prepared for."
Any opinions?
He also said the following regarding possible SS list:
“There’s no list per se. The office will have various short sale inventory with various agents. All the agents will be looking for buyers for the short sales. This is where the business arrangements begin. You’ll need to let me know what you want to purchase and I can get the candidate to you before it hits the market. If you’re already pre-approved or have the cash in hand for the purchase then you can approach the office as a potential buyer. The office won’t consider any buyers that don’t have the financing to make the purchase. Also, note the bank will usually consider the strongest buyer first. By that I mean, if buyer “A” makes an offer of $100K with a 10% down payment and buyer “B” makes an offer of $90K with 30% down payment, the bank usually chooses buyer “B”.”
My question is this (I believe I read something about this in an earlier post):
-
Once I’m notified of a potential short sale by him, how can I get to the point of where I’m dealing w/ the bank directly? I do not like the idea of “banks accepting the strongest offer first”. This sounds like an auction to me.
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Are more banks going the route indicated in his response above? If so, how should an investor deal with it?
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Since I do not have the funds to make an immediate purchase, how should I assign a potential deal and at what stage should I assign it? I’ve assigned wholesale deals, but assigning an ss would be my first…or, would you suggest that I go to an HML? Does anyone have any experience w/ using an HML for an SS? I would think that it would be a little different…
Your suggestions and answers are always welcome…thanks.