Short Sale Tips

March 18th, 2008

When writing a deal for a short sale there are a couple of things to remember.

1.You are representing the money, so don’t let the bank push you around. You hold the ability to help the bank satisfy there mortgaged debt load. Right now in this market financial institution have hurt themselves over the amount of debt they have assumed to the real assets they have. It is not your job to take care of their investment mistakes. So, when they start talking about reducing your commission, start talking about walking and them getting nothing.

2.You need a good title and escrow company. Don’t just use the people you have been working with for years. Go take a couple of short sale classes sponsored by different title companies to figure out who has the strongest staff for dealing with this type of sale. I did, now it as brought less stress to me and my clients.

3.Don’t try to super low ball the lender. Because not only does the primary lender need to get paid, in most cases the secondary lender needs some gravy to help cover their losses. So remember to negotiate with the secondary lender to make sure they don’t kill the deal because unless they sign off too, to clear the title the DEAL IS DEAD. In the cases I have dealt with, we have negotiated to just a few thousand dollar pay-off for the secondary lender.

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