Introduction
This blog was created to answer any general inquiries you might have about short sales or about how our team handles them. Skip it if your inquiries are specific to one of our listed properties. The specific entries about our listed properties contain the following information:
1. Information on the seller’s loan payoff for the property and who holds the mortgage(s)
2. How many offers are currently on the property
3. Where we are in the process of working with the bank(s)
This blog is updated every weekday (WHEN WE HAVE NEW INFORMATION), so you and your clients may check any time you want to see what’s going on.
OK, so how do we handle our short-sale listings?
We begin by pricing properties 5% – 10% below market value to spark interest and generate offers. Buyers will have to wait a lot longer to close on a short sale and they’re possibly going to get a great deal. Every week that we do not receive an offer we may reduce the price by another 5% in order to encourage offers. Once we get an offer, we stop adjusting the price.
As short sale specialists, be assured that we are working diligently with the third-party administrator(s) on getting offers accepted in a timely manner; therefore, we wanted to take a moment and explain the process we follow in submitting short sales.
First, we submit the first ACCEPTED offer (or best and highest if there are multiple offers) that is presented to us, in order to immediately start negotiations with the lender(s).
Second, any subsequent offers will be presented to the seller, and upon acceptance from the seller, will be held as back-up offers until we have an official approval price from the bank. Offer #2-x will receive the Back Up Offer Addendum. If the seller chooses, we may cease to present offers to the seller. We’ll notify all potential buyers if that’s the case.
Third, once we receive an official approval price from the bank, the offer in front of the bank will continue in first position until the Buyer or bank(s) rejects the other party’s counteroffer. If the party in first position walks away, we will inform all agents who have put an offer on the home of the approved price, request best and highest offers, and submit the Seller’s selected offer to the bank(s) for approval.
We understand that the short sale process can be very time consuming and frustrating for agents and their buyers. This website (http://ss.ysguy.com), will provide updated information about each of the short sales we are currently negotiating.
Trust us…we too want to sell these properties as soon as they are approved. Please be assured that you will be contacted as soon as we receive an approved purchase price from the third party.
In a nutshell, it may take a while to get an acceptance and close the transaction, but it’s a win for the sellers who avoid a full foreclosure; it’s a win for the bank, because they’re saving the cost of a foreclosure and they get a fair percentage of what’s owed to them; and it’s a win for the buyer because they may get a screaming deal on a property! This process ONLY works if you, the buyer, are patient…
This blog is updated so that anyone (you the REALTOR and your clients) can see how many offers have been made on a given short sale. If the lender instructs us differently, we will make notes of those exceptions in the post associated with the particular property.
An overview of the Short Sale process.
The first thing we do is notify the lender(s) that there’s a hardship and the sellers are unable to make their mortgage payments. We also request a short-sale packet. Lenders (banks) have their own unique (NOT efficient) way of handling a short sale. First and foremost, they want what is appropriately owed to them. If they’re going to accept less than what is owed on the property, it must make financial sense to do so for THEM. It’s not about the home seller’s hardship, and it’s NOT about what the buyer wants. It’s all about what the bank wants because they (and the investors) have a debt to collect. Their delays, etc., are not personal to the sellers and the buyers because they only care about collecting the debt.
The Short Sale Information Provided in this Blog
You get an approximate payoff on each of the seller’s mortgages and the names of the respective lien holders (banks, lien holders, etc.). We will also post the number of offers received and where we are in the process of getting a decision from the lender(s).
Submitting an Offer
IF you’re NOT a real estate agent (REALTOR), please call Dean @ 801-836-3112 so we have a competent agent to represent your interests. The YsGuy Team is happy to introduce you to such agents. The listing Agent will NOT represent both sides of the transaction.
1. ALWAYS submit the State’s short sale addendum.
2. You NO LONGER need an “As-Is Addendum” with the 2009 REPC.
3. Please write all Section 24 deadlines like this: X days AFTER 3rd party approval” (Okay, “X” should be replaced with a number—as if you needed to be told.)
4. Do NOT request sellers to pay for a home warranty. The seller is already hurting for cash, hence the short sale. We don’t want to be forced to counteroffer or address this term!
5. Send an e-mail to the YsGuy team that you understand the BAC is 1/2 of whatever we’re able to negotiate with the lender(s) — AFTER our negotiator’s fee (approxomately 1%). We’re going to negotiate as much commission as possible, but whatever the case, the split of the total NET commission between our brokerages is 50/50 period. Send the e-mail to ShortSale@YsGuy.com. Please insert the property address in the subject line of all email communications. Thanks!
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Dean Crandall is a licensed REALTOR with Keller Williams Westfield Real Estate based in beautiful Utah County. He has six successful years of helping clients and friends find and sell homes, land and investment properties.
If you are looking for free advice or have questions, please contact Dean directly:
Dean Crandall
801-836-3112
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YsGuy.com & DeanoDean, Inc. make no representations as to accuracy, completeness, correctness, current-ness, suitability, or validity of any information on this blog and will not be liable for any errors or omissions in this information or for any losses, injuries, or damages arising from its display or use; including, but not limited to, methane gases, body odor, computer and keyboard rage, and sleepless nights. No posts made here are not approved to diagnose, treat, cure or prevent any disease or mental conditions. Please make decisions based on advice of competent, licensed professionals.
Copyright® 2009, DeanoDean, Inc. “Read This First!”
