Bank Negotiation in Short Sale’s

March 19th, 2008

I have been receiving emails from a number of people asking me the best way to get the bank to accept a short sale offer. The simple answer is, do not super low ball the lender. Low balling creates conflict and it ends communication avenues. Banks have been making money long before all of us were twinkles in our parents eye’s, so thinking you are doing them a favor is a mistake. It is a numbers game, they know just as you do, that you will need to purchase the property with at least 20-25% equity to turn a 7-10% net profit. So, be real with your offer, be real with your clients about creating a real offer. Or as usual you will find yourself and your clients at the end of the line. With such low ball offers you will not create a good relationship with the lender on any future offers. And if that does not work, go to Costco, buy a 15 dollar carrot cake and deliver it to the banks L&M department. Food also creates a positive relationship, that will open communication easier.

 

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