Apples & Oranges
When you ask, "How much of a discount can you expect.... or how much of a discount did you usually get with that Lender?" I have to chuckle. I've been involved in hundreds if not thousands of short over the years, and I can't answer that question.
Lets take Fairbanks Capital, for example.
Fairbanks purchases portfolios of high risk mortgage loans. At a discount. They might pay anywhere from 25%, 50%, 75% to 90%. It depends. So how they entertain a short sale on a particular loan depends upon what they paid for it.
I might get a discounted short sale approval of 25% from a property's as-is, FMV, while only 10% on another.
Sure, much depends upon how compelling your Proposal is, and there is always a bit of luck... too. But if Fairbanks (or any mortgage loan servicer) buys a loan at 50% of face, they can afford to sell at 60% and make a profit. However, if they spend 80% for face, they won't accept a dime less than 90%...
Is there any way of knowing what they spent for the loan?
Nope. They won't share that information with you... nor does it appear on the assignment documents.
Great topic. Thanks for the info.
I'm wondering how you approach the negotiation if you haven't any sense of what they will take. What do you actually say?
I know this is pretty basic, but that's where I am right now - at the beginning.
Gratefully,
Marlene
AFTER you've prequalified the short sale candidate (read my last article) then assist the mortgagor in the completion of the short sale aplication. As you formulate the accompanying Short Sale Proposal, don't worry about what the mortgagee will accept. Worry about what makes sense for you. Determine at what price you would be willing to purchase the property. Then, after you've completed your due diligence, see what number your Proposal would support. Hopefully, your Proposal will support a lower number than the price at which you would be willing to purchase. If your Proposal can't support (is greater than) the number at which you would purchase the property, then you shouldn't get your hopes up.
As always Shortsalepro, another great post.
Im working with Fairbanks Capital now. Any other advice on workign with them?
I've made several hundred posts on TCI, each in adherence to what I believe to be essential to the structuring of a successful ss proposal. If you get a chance, read my two articles, How to prequalify a SS Candidate, and Child's Play. Better yet, read A Short Sale Primer which will prepare you to deal with any lender on any type of mortgage loan.