The short sale negotiation process is challenging, but there are some tips that can help you convince banks to accept the short sale. In this article, we will review some tips for negotiating with banks to accept the short sale.
Negotiation Problems in Short Sales
Many banks face the problem of not responding to phone calls. The bank may contact the selling agent when it is convenient for the bank and when it has something to say, provided it has not already lost the file or terminated the previous negotiator. If your file is incomplete, it is quite likely that your request for a short sale will be ignored. You will start with the loss mitigation department and may talk to a different person each time you call. If legal proceedings have begun, ask to escalate the file to a negotiator immediately, but expect that your request will be ignored. The seller must face challenges. If you cannot demonstrate hardships, your short sale is likely to be denied. Comparable sales may support the offered price, as if the bank believes it can get more money through foreclosure, it will not consider offers at the list price.
Negotiating with the Short Sale Negotiator
Don’t be surprised if you encounter more than one negotiator. I don’t know if negotiators resign halfway through because they can’t handle the pressure or if the bank reassigned them to another position due to a workforce shortage. It’s very much like the concession stand employee at the movies who is forced to sell popcorn in the lobby; your negotiator may be in another position in the bank’s parking lot the next time you call. Get the negotiator’s name and phone number (and email if possible). Don’t be discouraged if the negotiator is no longer available when you call. Get the next person’s details. Know the bank’s objectives. Ask specific questions like “Is this offer possible?” “Does your bank do short sales?” Do not accept a denial. Request the supervisor. Be persistent. Be prepared to present strong arguments that the bank understands.
Be a Refugee in Short Sale Negotiation
The bank may feel like a refugee, so you should be prepared to fight with the same tools. Be polite, but be firm and do not back down. Sometimes, although rarely, the bank may also want to negotiate the real estate commission, in addition to instances where the bank decides to waive the promise to pay the commission during closing. Be aware that the bank is not obligated to agree to anything. Request that all agreements be put in writing, but do not be surprised if you do not receive them. Make records and keep a log of every conversation, including who and on what date and time. You may need it in court. Ask the bank for a timeline and when might be an appropriate time to call again. Then call back a few days later. When you frequently get voicemail, leave a message and call again before lunch, after lunch, before the end of the day, and again in the morning before the day starts.
I hope to see the day when banks cooperate to handle short sales at a practical level, but until then – like a day when pigs fly – don’t let daily annoyances disturb you or your agent and keep making those calls. Many short sales eventually close.
At the time of writing this article, Elizabeth Weintraub, DRE # 00697006, is a participating broker with Lyon Real Estate in Sacramento, California.
Source:
https://www.thebalancemoney.com/how-to-negotiate-with-banks-for-a-short-sale-1799090
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