This is my first post, as I’m working on my first deal. I have a friend that wants to short sale her home to me. I have called her lender “Countrywide” and they told me that in the short sale package, I needed to have the home on the MLS for at least 30 days. We were trying to do this deal without a real estate agent, but it looks like we need one, just to list it for us. Is this a typical scenario, where the lender insists on their being a realtor involved? If this is the case, my friend said she would rather just foreclose than listing her home . Any ideas?
Yes as the lender said,it would be in ur advantage to let a realtor deals with this transaction because they already know how to handle the short sale package otherwise you (the buyer) and the seller will have to go back and fourth to the lender and they just want to avoid this trouble .Remember,the process can be difficult, you will need to deal directly to the lender’s loss mitigation department.they may need some information about the property;the lender may ask for financial information about the borrower(seller);they will ask for a written contract between you and the seller ;all that is to make sure that the seller is not walking away with any cash from the deal. If you think a short sale may be the sweetest deal ,the lender has the right to reject the transaction if the Broker Price Opinion is to high compare to ur offer which is very often the case. Good luck
Ryan, I’ve been told so many times before from the banks that they need to see it listed to show there’s been attempt to sell it.
If it’s a short sale that a realtor is not involved in, I let them know it’s FSBO and by working with me it’ll increase their Net amount since there wont be any commissions involved.
From my understanding they want to see it’s been listed for sale to please any bank examiner’s, but again that’s hearsay and could be wrong.
Lately I’ve been asked by banks if I’m looking to take over payments when I contact them about a short sale.
wells fargo actually called me back on 1 of them and told me they would be ok with it, and would even waive the late fee’s if I brought the property current. Unfortunately that particular property was a bulldozer property only worth land value or I probably would’ve took them up on that offer.
Really right now banks and the like iam finding are more open to any thing
And really the due - on -sale is not that big of a thing they just do not want another property back
So if you bring the property current after duing a sub2 paperwork with the seller and get the warranty deed recorded at the title company ( the deed in your name )
There is no need for the realtor to have any part of the deal
Thanks for everyone’s replies . I have looked at doing a sub 2 deal, but my friend owes a lot more than the property is worth, and she has a neg- am loan, so I didn’t want to take over a volatile loan.
motiv8td : That was going to be my approach with the bank, but the are very adamant about having it on the market. I have decided to enlist the help of a realtor friend who said he will put it on the market, but can make sure that I am the only one making an offer. His commission will come out of the lenders pocket, so it sounds like having the agent will only be beneficial for me to influence the BPO, and also makes me look like a buyer and not an investor.
Thanks for the tips. Influencing the BPO is my main objective, as I know the area like the back of my hand, and the property is located between million dollar properties, so my plan was to really work on the repair value and trying to find out if an add on was permitted, and if not, i will use that as another piece of evidence for my offer. Would like to hear your rundown Motiv8td. I’ll let you know when I order the BPO.
p.s. I am going to use my realtor to list the property only. I plan to do everything else with the lender and the seller, on my own, because I think i can influence the banks more than the realtor could. I will try to work on limiting the realtors commission since I will be doing all the work. Does this seem like a good approach to you, or whomever else is reading.
HEY once you get the realtor in the mix there are some new rules on the play ground
It will not make much of a thing one way or the other how much work the realtor is going to do or not do they will be entitled to xyz and you can not change that
And the bank short sale person will make sure they get it
As most of them have a set fee they pay the realtor in the deal and your offer to buy may have to be submited by the realtor for them to accept it
Thanks real estate 001. After reading what you wrote I emailed my realtor, and he said he would pay me out of his commission as a finders fee, since he knows he wont be working on the deal at all, except a few hours of his time to list and submit offer. I have brought him a lot of business in the past, so he is willing to help me on this deal. And he knows after this deal, there will be many more hopefully…
I’m going to list it at fair market value, which no one will buy in this market. I will then go in with my offer stating all the repairs necessary to bring it down to the price I want. If the bank doesn’t want to do it, then I walk away and they get to foreclose and lose even more money. Either way, I walk away with no deal, or a very good deal. Its up to the lender to decide if they want to hold onto a property that is losing them money, or if they want to take one off their books. The seller already said if I don’t get the property, they will let it foreclose, and I will be presenting it to the lender that way. After seeing what the banks already did to the economy, I’m sure they aren’t smart enough to just take the money and run. Sad but true…
I’ve worked several short sales and have worked with attorneys on it. My best advice to you at this point would be to get an attorney involved that can handle the transaction, preferably a real estate attorney. The one I use have gotten them done because she’s on the phone with the banks all the time. If you’re not in constant contact, the deal tends to fall through the cracks. The seller should retain the attorney and the bank will pay the attorney fee so it doesn’t really cost anything from your perspective. Also if you have a good attorney, they help doing the negotiations and the realtor usually preserves his commission, when there’s no attorney, the banks like to focus on cutting the realtor’s commission. Also they’re more likely to talk to an attorney instead of a realtor. I think you as a buyer would have even less luck. They probably need some kind of form signed by the seller to even talk to you.
You have the option, so technically you’ve bought it. The listing then goes under your name as the seller, the surrent seller signs a non broker agreement, and a commission agreement similar to a FSBO.
Go to http://www.shortsalesriches.com/welcome.html listen to one of their free webinars, it’ll will help you understand the process.
Have any of you have success with countrywide short sales?
i just took on a short sale with countrywide and all i keep hearing is that they are the worst to deal with. I just want to put on full armor before i go into battle with countryslide. :evil
Any tips or pointers to avoid any bumps in the road? :help