Don’t rely on on-the-job training with your DC Short Sales.
The listing agent is key to the short sale negotiation and experience is important for your DC short sales to sell smoothly. If the listing agent prices the home poorly and/or is week in negotiation skills, nothing short of a miracle is going to help.
A short sale is the process of trying to to convince the existing lender(s) to accept less on a sales price than the mortgage amount. The lender(s) only consider it because the home is upside-down in value in that the home is worth less into today’s market than what is owed against it.
A seller does not have to be in default for a short sale to occur; however, the credit ramifications can be exactly the same for a short sale as a foreclosure.
Problems in negotiating your DC short sales
1) Many lenders do not return phone calls. Banks will only call when the bank feels the need and it is convenient for them, providing they can still find the file or fired the previous negotiator.
2) If the file is incomplete, the file can very well end up at the bottom of the pile.
3) You will talk to a different person each time you call, typically starting in the loss mitigation department.
4) If the home is close to foreclosure, t is possible to ask that the file be “escalated” to a negotiator but the request is likely to be ignored.
5) The seller must have a hardship that justifies the short sale, though most lenders will know accept the fact that the house is underwater as hardship enough.
The goal is convince the bank that the shore sale will net the bank more than the foreclosure otherwise the bank is unlikely to cooperate.
Negotiating With the Short Sale Negotiator
Don’t be surprised if you end up dealing with more than one negotiator. Negotiators frequently quit or are re-assigned in the middle of the process. The reason is seldom clear, and the bank rarely bothers to explain.
Be sure to get the name, phone number (and, if possible, email) of the negotiator. Hide your disappointment if that negotiator is no longer available the next time you you call. Get the data on the next negotiator.
Try to find out the bank’s objectives. Ask pointed questions such as “Is this offer feasible?” “Does your bank ever do short sales?” Be persistent. Don’t settle at “no”, and ask for a supervisor. Calmly but firmly state your case in terms that the bank will understand. Be relentless.
The bank will be stubborn, but be polite and don’t back down. Most likely, the bank will want to renegotiate issues you thought were settled, plus there are cases where the bank decides at closing to renege on certain issues.
Understand that the bank isn’t forced to agree to anything. Ask for every agreement to be in writing, but don’t be shocked when you don’t get it.
Keep good notes, and keep a record of every conversation, with whom, and the date and time. You may need it in court. Ask the bank for a timeline and when it might be a good time to call back. Then call again a few days early.
When you repeatedly receive voice mail, leave a message and call again. Vary times by trying just before lunch, right after lunch, just before the day ends and again in the morning before the day begins.
Don’t let the day-to-day irritations annoy you and keep on making those calls. The good news is that many more short sales are now successfully closing.
Please call Tony McConkey 202-255-1900, a Principal Broker with 28 years experience, to negotiate your DC Short Sales.