HOw Do You Overcome This Objection
I'm working with a preforeclosure. The lady wants 10k moving money. I told her that this may not be possible given the value of the home vs. the debt.
If I can't do a short sale, there's a 280k debt on a 310k property. Add her 10k in and that leaves me with only 20k minus costs.
When I told her I'd have to see what I could do re: 10k moving money, she replied:
"Well then I may just have to file bankruptcy"
How do I overcome this objection.
Thanks,
If this woman thinks bankruptcy is worth more than $10,000 she's nuts.
I'd chuckle and say "Are you sure you would rather do that?"
Good luck!
Mike
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Since as of yet I did not have the opportunity to perform a short sale but it's obvious this woman don't have common sense even 5k is better than filing for bankruptcy. You may have to keep it moving unless you can convience her otherwise. Good Luck
Quote:
On 2003-10-08 15:51, vcrindc wrote:
I'm working with a preforeclosure. The lady wants 10k moving money. I told her that this may not be possible given the value of the home vs. the debt.
If I can't do a short sale, there's a 280k debt on a 310k property. Add her 10k in and that leaves me with only 20k minus costs.
When I told her I'd have to see what I could do re: 10k moving money, she replied:
"Well then I may just have to file bankruptcy"
How do I overcome this objection.
Thanks,
Is the 10 grand for moving expenses? the cost of moving? the ability to set up somewhere else?
Try to find out what she wants the 10 grand for then figure out a way to do things in a less expensive way. She may not realize that things aren't as expensive as she otherwise thinks.
My $.02
She says the 10k is for moving, getting set up, etc.
Don't think she'll budge off of the 10k
FIRST Tell Her that you are IMPRESSED by her move to DELAY the Foreclosure but DID SHE Interview the ATTY. so as to fully UNDERSTAND:
- Her Credit Consequences that will limit here buying and/or borrowing abilities for 10 Years?
- How HER BK Chp13 Workout Pln Pymts?
- How Her Chp7 doesn't save the home?
- How if she does she'll STILL call you back or another investor to buy it via SHORTSALE?
or How you are prepared to wait til AFTER SHE RUINS HER CREDIT, and the LENDER Requests a RELEASE of STAY to Sell her home irregardless of BK and then YOU CAN BUY IT for $245K or Even Less???
FINALLY ASK HER ABOUT:
- Attys. Retainer Fee and total cost to file the BK-say around $1500 to $2K they say nothing down but want at least $700 to file and get you a date.
and will the ATTY GUARANTEE that the BK will Get her $10K???
NOW QUICKLY ---WHIP OUT YOUR B-CARD and Offer Her $2K for the Stinkin Deed ---Write this on the Back of your B-Card and before leaving say to her:
"I Wish You the Best and Have a Nice Day!---Sounds like you and your Atty have got a SUPER TERRIFIC PLAN if he answer all your Q.s and YOU can Handle the garnished pymts from your paycheck PLUS your regular monthly note as well!!!"
Say GOOD BYE And DO NOT TURN AROUND to say anything else nor CALL HER BACK nor VISIT HER for NUTHIN!!!
Quickly skeedaddle out of the door and peel off REAL FAST from the CURB in your car!
It is VERY IMPORTANT that YOU SMILE all the while you're doing the above.
Sheepishly SMILE---
Don't worry cuz pretty soon She'll CALL YOU...just BEGGING YOU to take the Dang DEED and maked it ALL GO AWAY!
Or You'll be free to CLOSE 4 Other deals in the time she would have taken to give you a few ULCERS!!!
If that is the case be glad she doesn't call back ...I hear ulcers can run you a few thousand in Med Bills...All of your Profits to the Dr....NO WAY JOSE!!!
I hope this Helps...kinda LONNNNGGGGGG but insight huh?
Derrick
See if you can get an itemized list of the thigs she needs to move...Even if you use a moving company, it won't cost 10k...she sounds like a brick.
I don't know how much bankruptcy costs Ive heard 7K ballpark depending on involvment. That would leave her 3k.
Whatever the cast its not free.
Okay so this lady is obviously asking for too much.
I really don't mind giving her 10k if the short sale is accepted.
However, how should I proceed? The tentative auction date is set for Nov 24th, and I'll need some time to find a buyer. I'd rather get to selling the place and finding a buyer NOW!
I usually wouldn't mind walking from a deal, but I'm just getting started, and I'd like to prove to all of the doubters out there that you can make real cash in this business!
The main thing is how experienced is she. Can she file her own BK? really pretty simple. She could file which stays her foreclosure, then withdraw the plea one day before first creditors meeting, then wait a day and do it again. She can probably do this about three times until the attorney for the Trustee in Foreclosure wakes up and gets the court to restrain or whatever. She should be able to hang it up for another 4 months. Of course the REO Department of the Lender goes nuts and begins to worry. Which might mean a short sale to your advantage. Also by the end of that time my experience is that she will then take $1,000 or less Walk Out Money.
Now remember the interest is still ongoing on the lst in foreclosure and the taxes. The Bills just arrived.
Interesting situation but it does occur, now then mighty Negotiator, here is your chance. to perform. Stay in touch with the REO officer on the short sale. If you could kick the unpaid bal on that note down by $20,000 to $30,000, and cut the payment down to her, you got a goody.
Cheers, Lucius
In my opinion Derrick is right on. Do a take-away, there are plenty of other deals out there. Bottom line: never change your personal criteria of a potential buy. Stick to your guns and walk away. Make your final offer and wish her the best. Just my 2 cents. Good luck to you.
Matt
I like the take away close, but if the bank DOES agree to the short, then I have no problem agreeing to her 10k.
Should I just agree to her 10k and get the deed anyway, or wait and see what the bank says?