Short sale deal?

Seller has a newer home and says doesn’t need any repairs. She owes 90k, comps for the area are for 85-90k. There is 1 loan on the property and she has already had an extension from May 6 auction.

2 questions:

  • Will the banks be willing to negotiate if there aren’t any/many repairs needed?
  • How exactly would I go about getting an extension filed if I don’t have any buyer lined up AND where exactly do you guys find your buyers so fast if there is only 1 month till foreclosure?? I assume you’re trying to find RETAIL buyers?

They should be willing to do a short sale if they are smart. Try working with the borrower to get you to sign off to talk to the mortgage company and then give them a call. This would help the bank out as well.

^^^ What a completely pointless, effortless, and non productive answer. jeez… :banghead


Yes, lenders will consider short sale offers on properties that do not need any repairs and are in otherwise good condition. When there are justifiable repairs needed to a property the lenders will take into account the cost for those repairs when reviewing a short sale offer. Such repairs can be used to bring down the value of the property, thus bring down your short sale offer. Keep in mind that as an REO they will sell ‘AS-IS’, but that doesn’t mean they won’t make any repairs before placing on the market. Generally speaking, the repairs an asset manager would approve to an REO are the same kind of repairs that a loss mit officer will allow adjustments for in a short sale offer.

To find a buyer I suggest you use the search button above. There are tons of really good ideas on different ways to find buyers that have been discussed over the past few years. Personally, I would start looking for a buyer before you submit a short sale offer. Many banks wont eve accept a short sale offer unless there is an actual buyer. That is to say, they will not negotiate a short sale and then let you find a buyer…you have to have the buyer and then negotiate the short sale.

GooD Luck! :beer

Aubrey, That is how you answer a question productively. :deal Practice some. I look forward to reading more of your posts! :biggrin

No need to be a d-head sir. I’m working right now, and it was a basic question that gave a basic answer to work at what he is trying to do. If you would have been as thorough to answer that question before I answered it, or if someone else would have spent the time to help him out, then I wouldn’t have bothered to answer anyways. But since NOBODY give him any response, at least I gave some effort to address his basic question. I wanted to keep the thread going so someone would be able to help him.

Thanks for the replies guys, I appreciate it…

I understand banks generally like to see a buyer before they accept an offer, but I’m a little puzzled. I’m see numerous ads/mls postings about short sales that have ALREADY been accepted but are looking for buyers?? How did they get accepted, if there was no buyer in place?

another pointless post trying to justify the first pointless post…


Sometimes people get an approved short sale and then their buyer falls through so they market the property at the already approved short sale price. OR, they lied in their offer about having a real buyer just to get an approved number to market. Most often however, the properties listed on the MLS as a short sale aren’t approved yet. They probably have a verbal from the loss mit officer that they will consider a short sale if one is presented. So the property is marketed as a short sale to try and encourage offers to get started with. They will collect the various offers and choose the one most likely to be accepted and close the quickest.

GooD LucK! :beer

yawn… Another one… Good thing it’s Saturday.

Taking personal stabs at my professionalism, ‘expertise’, and name calling certainly doesn’t jive with the topic of this thread nor the forums rules. In case you have not taken the time to read the forum rules you can find them HERE. Note what the very first rule is.

Your pointless posts resemble other pointless posts we most commonly see in these forums when someone is trying to ‘pad’ their number of posts rank found under our names to the left.

Since you insist on continuing to push this issue let me break down why your post was pointless, effort less, and non productive. First lets note that the sentence structure reflects three separate and non related statements, none of which even attempt to answer the second and third questions. This happens when the writers mind is not focused on the subject. Lack of focus suggests the author is not putting effort into writing or answering the question. Because there is no effort put forth toward answering the question the writing is deemed pointless to the subject. A pointless post is thus non productive.

Being smart about what? There is no question as to whether or not the lender will consider a short sale because they have already given an extension from the first auction date. They more than likely did this because there was a potential offer on the table or the homeowner had/has the potential to bring the loan current.

Besides, if the lender loss mit rep is ‘smart’, they will see that the property is comping at 95% to 110%, which is in line with the debt. So the property is barely over leveraged if at all. The property needs no work and short of the homeowner damaging the property on their way out, the bank can more than likely sell for at or just under market value in ‘AS-IS’ condition. The lender knows they will be taking a loss on this property, the question is how much of a loss will it be? Will they take more of a loss selling as an REO or by accepting a short sale offer? They won’t know what the ‘Smart’ decision will be until they review potential short sale offers.

Suggesting to Ball that they should ‘try working with the borrower’ and ‘to sign off to talk to the mortgage company’ (this is called the authorization letter) is just as pointless. Obviously Ball is already working with the homeowner or they would not know about the extension and the authorization letter is the most common doc in the short sale process. It’s common knowledge, even for the greenest of noobs, that the authorization letter is a must. It is the first and most important doc a negotiator needs to get started. Without that letter no lender will talk to you about any loan. For these reasons your statement is not constructive and thus, is pointless and effortless.

Why in the world would a negotiator call the lender and ask them if they will consider a short sale based on repairs? If I was the loss mit rep who got a call like that I’d know i was dealing with a noob who’s too lazy to do their research and would rather waist my time with a question like that. I would tell them, and i have told people who called asking me questions like this, to check with google and not with me. Questions like this is a great way to NOT have your phone calls returned. Loss Mit Reps don’t have time to educate people about the short sale process. If they think they are going to have to field questions like this they just won’t return your calls. Then where does that leave you? So if you really want to get down to it, this statement is not only pointless and non productive, but it is counter productive advice that could cost anyone who follows it to ruin a relationship with a loss mit rep.

Trust me, the bank does not look at a short sale as ‘helping them out’. The difference between a short sale and a regular offer is that you have to take into consideration the homeowners personal position and financials. A short sale is the negotiation of a reduction to a homeowners loan NOT an offer on the property itself. The property is just the security for that loan. By negotiating the terms of the loan we are able to satisfy the lien on the security and thus creating equity in the security. Bottom line, this statement was made because that’s what you’ve heard about short sale, that it helps out the bank. I’ve never had any bank tell me, ‘hey matt, thanks for doing that short sale, it really helped us out!’ There is a reason why short sales take a really long time to do and why more fail than are successful.

At the end of the day you just need to realize that this is all just my opinion and point of view. I’m sorry you are not thick skinned enough to handle that and that you have to resort to name calling. But that’s ok. After reviewing your other posts I do not think you are malicious, rather, just a noob. I applaud your effort to further educate yourself and I wish you the best of success. I do suggest you become a little more thick skinned if you plan on continuing in short sales, otherwise you’re going to have a very high level of frustration dealing with crazy homeowners and loss mit reps who are bigger ‘d-heads’ than me. :biggrin

You and Christ have a good day!

Well sir if you put that kind of effort into every one of your posts, then we would all benefit. There is no reason to call anyone names without malice. The point is that nobody answered his questions. I see a lot of threads with 25+ reads and 0 posts, so no matter how bad you feel my response was, at least it was an attempt to help the guy out.

Have a great day