? for JohnMichael or ShortSalePro
I have been lurking on the foreclosure/shortsale forum. I, myself, have started to attempt some short sales (currently have 7 in the pipeline) and had a few questions.
I have studied the material from Dwan Bent and Sharon extensively. I am curious if your experience with short sales matches what they say. Specifically that they get 7/10 deals successfully completed and sometimes at 50% to what the homeowner owes the lender. From my limited experience, this does not coincide with what I am hearing from the banks I’m speaking with now. Any insight would be appreciated.
Another problem I have is too many potential short sale leads. I need some way of filtering the list down to a manageable level. Do you have any set criteria that you use before attempting the short sale? Things such as lender, amount owed vs property value, amount owed on 2nd, etc…..
I would love to see that mini course that you offered to wonderboy if possible.
Thanks
Firstly, if there is a ton of equity in the subject property, it isn't a good candidate for short sale. Try another technique for acquisition.
The majority of all short sales occur when the mortgage balance exceeds the perceived, fair market value or, the mortgagee is acutely 'loss averse' that month and, uncharacteristically, accept a low payoff.
Sure it's possible to get the lender to accept 50% of what it's owed.... why? Because that number is usually immaterial.
The two most important numbers in a short sale transaction are 1) the mortgagee's perception of the as-is, fair market value of the subject, and 2) net payoff to mortgagee.
In most cases, what the mortgagor owes to the mortgagee isn't a factor.
Newbie--
You mentioned that the banks aren't giving you the feedback that they are interested in a short sale. I spoke to Ameriquest and they said they absolutely will not accept a short sale especially if there is a 2nd mortg. on the property. I didn't accept their answer and called back. I was connected to the supervisor in the loss mit department and she said they would absolutley take a short even with a second.
Make sure you are talking to the decision-makers at the banks. Keep us posted.
Hi TomJerry,
I totally agree. There have been many instances where I have called back and spoke to another rep which gave me a completely different answer than the first one.
The feedback I have been having trouble obtaining is the range or dollar amount that will make sense to the bank. They are very reluctant to divulge that info (for good reason, I might add). That is where I have to work on finessing it out of them.
Anyone have ideas?
I've yet to do a short sale but look forward to it!
I'm curious as to what you guys are saying on the short sale call to the bank.
Wouldn't it be beneficial to find out who the head of the LMD is before you call and talk with his peons?
I think I read a script for this stuff once but I forgot who wrote LOL Re information overload like a mug.