We used to get calls into our office once a month or so from buyer’s Realtors, completely frustrated with the short sale process, and the sentiments were always the same….being on the buyers side of a short sale can be a helpless feeling.
The buyer’s Realtor had submitted the short sale offer to the seller via the listing agent for signatures, got the contract back signed, and received confirmation from the listing agent that the offer had been submitted to the lender. Now the waiting begins with the buyer’s Realtor forced into almost a “blind faith” position in the transaction.
The buyer’s Realtor must feel confident that things are being handled properly on the listing side. After all, their client will look to them if things don’t go well. The buyer’s Realtor must feel that the listing Realtor has a good system of follow-up, or has a competent assistant that is making regular calls to the lender, that he/she knows the guidelines of the particular short sale listing they have. This is important because the listing agent will have to ensure the LENDER follows the rules correctly, not just be a “yes-man”, or woman, when contacted by the lender. For instance with FHA short sales, the guidelines are very clear and if followed to a “T”, approvals can come as quickly as 1 day. Yes, one DAY!…depending on the workload of the negotiator at the bank. (See my video on the 3-Hour Short Sale.) So the buyer’s Realtor must be comfortable with the listing agent and their overall knowledge of ALL the rules of the game, and that they can really get the short sale to the closing table.
To make matters more difficult, if the servicer communicates a counter-offer, in most situations, the buyer’s Realtor just has to “accept” that the information is not only valid, but that the counter-offer being requested is actually NEEDED to get the short sale closed. In most cases, the counter-offer information is simply passed on to the buyer without any challenge of its validity to the short sale lender from the listing side. We all know lenders ALWAYS tell the truth, right? Of course not! It’s all about the money….period. But, what if that short sale CAN close with the current offer in hand, but because the listing Realtor may not have experience in challenging the short sale lender’s response, the buyer really wants the house so they agree to raise their offer, OVERPAYING for the property.
This happens all the time.
Now, I’m not saying that ALL listing Realtors don’t know how to effectively NEGOTIATE a short sale, but I am saying that MOST don’t and the buyers get the short end of the stick. In fact, we have many listing Realtors as clients that would be VERY good at short sales, but would rather just sell property (after all, that’s why a Realtor gets a license anyway – not to stay in an office on hold with the mega-banks all day). So they capitalize on our system to manage the entire process from beginning to end FOR them.
So if you’re representing a buyer in a short sale transaction and you just aren’t sure if things are being handled correctly or efficiently enough for your liking, we have a solution for you.
Short Sale Monkey now has buyer’s Realtor coaching….called our “Coach-t0-Close” program. 
I will personally assist you and your client create the initial offer, create the HUD-1 that will be needed for submission to the lender on the listing side, and evaluate the transaction regarding the different short sale guidelines that are out there. Knowing the specific guidelines and rules about how an FHA vs. HAFA vs. VA vs. Conventional short sale get approved can literally shave MONTHS off of the time needed for approval. I’ll help you with analyzing and responding to any counter-offers that come in, and coordinating the closing, if needed (sometimes there’s a huge learning curve with short sales in the escrow area too and knowing how the closing process works can also save you and your client a lot of hassle).
If you’re not sure if you need my help throughout the whole process, but you just want to know how to submit the first offer to absolutely GUARANTEE your client doesn’t overpay for the property, I’ve created a FREE VIDEO for you. In the video I’ll show you the tricks we use to come at the banks hard with the first offer, expecting a counter-offer. Getting a counter-offer is the goal so that we make sure the absolute best discount is obtained.
I truly wish you luck on your short sale and that you find the video helpful.
At the end of the day, it’s about stopping as many foreclosures as possible while creating a win-win-win for everyone involved. If we can help, please let me know.
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