FHA Bargain! Short-Sale Pro's Needed!
1)If you are submitting a short sale package on an FHA loan (which ususally will settle at 82%), do you make your first offer to the bank at a 40% discount?
2)Has anyone ever completed an FHA deal for a greater discount than 82%?
Submitting a ridiculous offer would be a waste of time. If the transaction doesn't prequalify for a short sale, try another technique.
My Five Steps:
1) basic short sale prequalification of the Seller, the mortgage loan, the real estate, and whether the anticipated acquisition price meets your own business requirements;
2) information gathering (field & empirical)
for analysis and it's manufacture into supportive data;
3) preparation of a compelling Proposal;
4) presentation of that Proposal to the
appropriate body and/or individuals;
5) negotiate terms for mortgagee(s) approval.
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If FHA terms are set in stone, indicating that an offer of 82% of the property's fair market value will be considered, so be it. That is NOT open for debate. You can't win on that point. But you may be able to influence their perception of the as-is, fair market value.
In "A Short Sale Primer" I discuss how I refuted the results of the mortgagee's certified appraisal, and had the Appraiser revise his opinion of value downward, which facilitated the short sale.
Try to pick the fights that you know you have a chance to win. Otherwise, you'll always be sporting a black eye.
SSP:
Is the book ready now? Can you get an ebook copy and save the shipping?
TheShortSalePro,
I appreciate your thoughts. I have read many articles and post that suggest that others are starting extremely low by submitting "ridiculous" offers, and then working their way up as needed to reach an acceptable position with the bank. Obviously from your postion, you totally dissagree with this thought. (perhaps it is because I was referring to an FHA mortgage).
I've been in the real estate business for a long time, and I've had my fair share of "black eyes". TCI is a great web site to be able to ask questions in advanced, to prevent yourself from being punched again. I've talked with several people who are having good success lately, mostly with FHA short sales, and I wanted to get a grasp on how others were approaching FHA's at the same time.
Thank you for your thoughts!
I believe that this practice applies to all short sale proposals and all types of mortgages. I suggest that the more realistic your proposal, the more credible your supportive data, and the more informed you are, the more likely for success.
That doesn't preclude the ocassional acceptance of a low ball offer, but I think that a low ball acceptance is more an exception than the rule.
Those are great thoughts. I appreicate you sharing your time with me.