Short Sale Files – What's Important And What's Not
November 11, 2010 / /
http://kevinandfred.com/power-hour/techniques/
Fred has some interesting information about the documents provided by your short sale clients.
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About the Authors
Kevin Kauffman & Fred Weaver
Kevin and Fred the founders of Group 46:10. Over the last 10 years Kevin and Fred, and their team have closed tens of millions in real estate all over the country and have created some of the best training for agents in the market. Kevin and Fred are also highly sought after teachers whose work has helped agents all over the country build their own next level real estate business.
I had a few in equator that have countered the offer before seeing the financials. When they came back asking seller to bring cash to close & take back I note, my question to the negotiator was “how can you decide that when you haven’t evaluated their finances yet??”.
Of course, as per usual, I get no answer because they flat out ignore my questions through equator messaging system or they play dumb (although I’m not sure it’s an act anymore).
So what you guys are saying would make a lot of sense – the investor could just be looking at credit score. Not even considering the hardship at all.
Interesting to note as well, per Elena Celestine @ BOA, they are servicing over 500 different investors, each having their own set of guidelines. So just because you got one approved thru BOA one way – doesn’t mean it will work on the next file.
This is what is making my life interesting & frustrating!! What have I gotten myself into!! 🙂
As usual, thanks guys for the insight into “As the SS World Turns”. Always a pleasure!!
This is great information. Let’s hope the others follow the lead of Fannie Mae, it can only streamline the process in the future. (Not that it needs it or anything!)
We can only hope that the investors stop asking for notes and closing costs and that agents FIGHT for their clients, especially when they know their clients cannot comply.
I just came upon your site a few weeks ago. Do you have any videos discussing short sale negotiation companies? I prefer to advocate for my clients myself and will train people to do so once my business grows, but I am constantly being asked by these companies to subscribe to their services. Your thoughts?
Thanks!
Hi Danielle,
Thanks for watching! I strongly encourage you to NOT hand off your files to 3rd party negotiation companies as the majority of them will NOT the same level of results that an agent will who’s willing to “roll up their sleeves” and fight on their clients behalf.
I won’t go as far as to say all 3rd party negotiation companies are bad, but MOST is a very conservative statement.
We definitely encourage agents to invest themselves in Short Sales and when you get too many to do them all on your own, add leverage to your team/business and bring in inside help (vs. going outside for help).
Fred
+1 one on what Fred says here. Do not hand your file off to a 3rd party, there is no magic when working a short sale, get the training you need and roll up your sleeves and get it done!!
Thanks for the advice, Fred and Jeff. I plan on fighting for all my clients myself and handing it off to a 3rd party.
Great website. I watch daily.
Danielle
Duh – correction. That should be “NOT” handing it off to a 3rd party. Is it Friday yet??
I’ve had the negotiator from BofA tell me she had approval and I just need to email here any documentation I had in the file. I sent her hard ship letter and a letter stating the my seller had no documentation!
WOW, I love it! Wall Street and Investors are creating ‘expanded’ ALT-A, A- minus guidelines again…but for Loss Mitt!
Just provide a hardship paragraph, a LOW FICO and a heart beat, and you qualify for an approved short sale. WOW! I wonder if they’ll expand that to negative amortization, and offer it as a Non-0wner Occupied too? I wonder, will they waive all the debt if I have less than a 450 FICO, or have at least 2+ years with no job and not paying my bills. NICE!
Just having fun! Great work, great topic, stay on the bleeding edge fellas!
The last few deals we have been involved with have been very inconsistent in terms of what has been requested of the investor regarding documentation. I think the banks are realizing they are their own worst enemies in many cases.
On the opposite end, if the borrower has a decent credit score, we have been seeing very large cash contribution requests. Problem most of the time is that the lender has not been reporting the late payments to the credit bureau so the score looks much different than it is.
Thanks for the ShortSalePowerHour.com – good stuff! Working with several files through equator and yes BofA is now asking for seller contributions- cash and promissory notes – one of my negotiators said- since they are trying to collect a debt- it doesn’t hurt to ask…right? Which I took as – it’s not going to make or break the deal- I would ask too – if it were my money! If the borrower refuses or can’t do this they need to write a letter (addition to their hardship letter) explaining why they can’t contribute! So far submitting the letters from my clients and adding an additional letter from me- expressing why I really feel they can’t do it either- has been working! So – hope this helps! TB from South OC