Financial Resource

Article by realtor/investor

Any short sale real estate investor knows one of the biggest challenges faced is working with the bank. The short sale process is lengthy, especially when a speculator has to work with over one lender to agree on a price OK for all parties. 3 parts of the method that are often over-looked are the original contact with the lender, putting together the short sale packet, and negotiating the figures. If you come to the deal prepared, then the process will go smoothly and the investment will work in your favor. Contacting the lender could make or break the deal for a short sale real estate investor. Your first call should be to the Loss Mitigations department. It may take you several attempts to get to a live person who can be helpful. Customer service can direct you if there isn’t any direct number. Ensure when you finally reach the right dept and create a main contact person, you get all the info including full name, direct contact line and extension, and hours they work. Always work in a pro demeanour with the bank and never raise your voice or make accusations. It will be frustrating as the banks have an enormous over-haul of short sale real estate and foreclosure properties with a diminsh number of staff. Come to the conversation prepared. Banks can sniff out a new investor immediately and you do not need to ruin your chance for success. Have a list of questions you wish to debate and writing materials handy. Never disclose that you’re a short sale financier. The bank is most certain to turn you away if this info is present in the original conversation. Tell them that you’re a buyer or customer representative. If they ask any questions, reiterate that you are a purchaser. After your first phonephone conversation, the lender will mail out a short sale packet. Filling out the packet totally and sending it back in an efficient fashion is highly significant. Don’t skip steps or leave out critical documentation as the bank will put your loan package at the base of the pile and forget about it. The bank will very likely request materials such as : – A cover letter saying your offer price – A hardship letter explaining why the home-owner can’t afford the mortgage – valuation estimation – fix estimations – earnings statements from the householder Once your short sale packet has turned up at the bank, they’ll order a rating of the property, or broker’s price standpoint. The BPO generally comes back within 10 days and will give you a price to negotiate around. The bank will try and get the offer as near to the BPO as practicable. Thus, you want the BPO to come in your favor. Occasionally this is out of your hands, but this does not suggest that you can’t get the bank to go under the BPO. Remember, it is very important to come into a short sale real estate investment deal knowing what you are up against. Always have patients with your banks, fill out all paper work correctly and submit it with the correct documentation, and negotiate around your BPO. .

Tags: estate, investor, price