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Parts of a Short Sale | Asheville Real Estate

Steve Wilde | 705 Views | 01/21/2015

Important Short Sale Information

Hi, I’m Steve Wild from Wild Law Firm and welcome to Short Sales Gone Wild. Get it? No, I’m not going to take off my jacket. What we’re going to talk about today is the two most important things that you must have if you want to have a short sale, if you want to be successful and have a short sale, that’s what we’re going to talk about. You cannot do without either one of these.

Seller Participation

Number one, the full participation of the seller. We got a mountain of documents we need. We need their financials. We need their hardship letter, all that stuff. We’ll talk about that in another video but we need that. And occasionally you’re going to have someone that doesn’t want to participate. You might have a victim seller and it’s like, “Oh, my God, you have no idea what my life is like right now. You want me to do all these documents? It’s a mountain of paperwork. I can’t. It’s in storage. I couldn’t possible, you do it, you’re getting a commission.” Or you might have someone that’s already tried to do a loan modification. The most unsuccessful program on the face of the earth, chasing a rainbow I call it. They come in to your office and they’re done. It’s like, “Oh darling, you want me to give those documents? I have already done that. I’ve done it five different times. I’ve made every single payment they asked me to make and they turned me down. They turned me down after a year and a half. I am not going to give them those documents again. They already have them. Tell them to send them over. Uh-uh I was sweet as iced tea, no way am I going to do that again, Bank of America.” Now I get it. I would be frustrated to. I would not want to do them either but what I normally do in that situation is just explain to them, “Well I totally understand. It’s a horrible program but that’s a different department in a different state. We got to start over. It’s the same documents. I know you’re frustrated but there’s no short sale unless you do it.” So that’s what we need. We need the full participation of the seller. No amount of hard work or good will on your part is going to get over that hump. We’ve got to have them play ball.

Market Price Offer

So number two, market price offer. What? A market price offer? Yup, Fannie Mae, Freddie Mac guidelines require a market price offer. It’s non-negotiable. It’s a non-negotiable item. You do not get in the door without a market price offer. Well then why would anyone want to do a short sale if you have to pay market price? Well market price is a range. So what has sold in that neighborhood, or in that vicinity, in the one mile radius, in the last three months. What do the cops say? So that’s how they’re going to determine what market price is. We’re usually going to be playing at the low end of the range. So if there was another house on that street that wasn’t a short sale it’s probably going to be substantially higher. So that’s why it’s still viable to do a short sale. There’s a lot of spaghetti being thrown against the wall. A lot of people’s approach to short sales is to just throw and offer at them and get a reaction from the bank. Oh, my God. That’s not the way to do it. We know today, standing here today, they need market price offer. They need all these documents. Why not give them a market price offer, tie it up with a bow, and we can get in and out. It shouldn’t take any more than 45 to 90 days. Go get some more short sales. Shout out, this is for my buddy Steve. Hey, buck, he’s so handsome. Short Sales Gone Wild, really, Short Sales Gone Wild. Some people think of me as a primrose but I’m not. I’m a wildflower, hell, I’m a Carolina hurricane. “What, what’s a short sale?” Oh, my God.

By: Steve Wilde

Parts of a Short Sale | Asheville Real Estate

Important Short Sale Information

Hi, I’m Steve Wild from Wild Law Firm and welcome to Short Sales Gone Wild. Get it? No, I’m not going to take off my jacket. What we’re going to talk about today is the two most important things that you must have if you want to have a short sale, if you want to be successful and have a short sale, that’s what we’re going to talk about. You cannot do without either one of these.

Seller Participation

Number one, the full participation of the seller. We got a mountain of documents we need. We need their financials. We need their hardship letter, all that stuff. We’ll talk about that in another video but we need that. And occasionally you’re going to have someone that doesn’t want to participate. You might have a victim seller and it’s like, “Oh, my God, you have no idea what my life is like right now. You want me to do all these documents? It’s a mountain of paperwork. I can’t. It’s in storage. I couldn’t possible, you do it, you’re getting a commission.” Or you might have someone that’s already tried to do a loan modification. The most unsuccessful program on the face of the earth, chasing a rainbow I call it. They come in to your office and they’re done. It’s like, “Oh darling, you want me to give those documents? I have already done that. I’ve done it five different times. I’ve made every single payment they asked me to make and they turned me down. They turned me down after a year and a half. I am not going to give them those documents again. They already have them. Tell them to send them over. Uh-uh I was sweet as iced tea, no way am I going to do that again, Bank of America.” Now I get it. I would be frustrated to. I would not want to do them either but what I normally do in that situation is just explain to them, “Well I totally understand. It’s a horrible program but that’s a different department in a different state. We got to start over. It’s the same documents. I know you’re frustrated but there’s no short sale unless you do it.” So that’s what we need. We need the full participation of the seller. No amount of hard work or good will on your part is going to get over that hump. We’ve got to have them play ball.

Market Price Offer

So number two, market price offer. What? A market price offer? Yup, Fannie Mae, Freddie Mac guidelines require a market price offer. It’s non-negotiable. It’s a non-negotiable item. You do not get in the door without a market price offer. Well then why would anyone want to do a short sale if you have to pay market price? Well market price is a range. So what has sold in that neighborhood, or in that vicinity, in the one mile radius, in the last three months. What do the cops say? So that’s how they’re going to determine what market price is. We’re usually going to be playing at the low end of the range. So if there was another house on that street that wasn’t a short sale it’s probably going to be substantially higher. So that’s why it’s still viable to do a short sale. There’s a lot of spaghetti being thrown against the wall. A lot of people’s approach to short sales is to just throw and offer at them and get a reaction from the bank. Oh, my God. That’s not the way to do it. We know today, standing here today, they need market price offer. They need all these documents. Why not give them a market price offer, tie it up with a bow, and we can get in and out. It shouldn’t take any more than 45 to 90 days. Go get some more short sales. Shout out, this is for my buddy Steve. Hey, buck, he’s so handsome. Short Sales Gone Wild, really, Short Sales Gone Wild. Some people think of me as a primrose but I’m not. I’m a wildflower, hell, I’m a Carolina hurricane. “What, what’s a short sale?” Oh, my God.

By: Steve Wilde