Offers Percentages In SS Negotiations
I've worked a number of short sales and ahve lately been finding that a number of the larger mortgage companies will not accept anything less than 90% of the house's value based on area comps.
The banks do a BPO where we've removed the kitchen and anything else not tied down and still get the 90% figure.
Is anyone else running into this?? Is this purely a problem with the actual investor on the mortgage??
How do you get around this????
I devise a compelling, fact driven Proposal that denigrates the mortgagee's perception of value... that is the essence of short sale negotiation.
The more factual, the more credible your argument.
[addsig]
Well, the letter on contractor's letterhead listing repair costs, comps of other fixers in the neighborhood, photos of the "disaster of a house", a detailed listing of the money they'll lose in interest due to CO being a 75 day redemption state all go in the short sale package.
I don't think there's much more that I can include.
For me the key is to show the lender how much pain this property will be and how much profit they will make by selling to me at a discount.
I will get 3 or 4 comps in the area that will show the lower in of the market.
I now get repair estimates show a higher end of the market.
For example: I never get estimates from painter but from decorators!
When I get estimates from contractors I simply advise them that I want the property
In perfect condition and money is not an object! And so on.
I research crime rates in the area and look for sexual offenders in the area to show the lender of potential problems.
I then show the lender by lending at what their current rate is how much profit they make.
This is just a basic outline.
I sometimes run into the same problem. Right now I have a duplex, each have owned seperately. One side is in foreclosure. The first 44K won't negotiate, the second was orig. 25K, now says they are owed 45K, and won't accept less than 35K. The house is worth about 54K, and won't take less. I am trying to buy out the first at a slight discount to get the house. Just because the second really fired me up. The second was bought from First Plus Financial who was in bankruptcy. I believe it is privately held since only one person ever answers the phone. Oh well.