

1,014,738
The reponse you recieved is EXACTLY why I hired a short sale negotiator for all my short sale contracts during the short sale explosion
Best of luck with this one - if it were me and the seller was unwilling to change the price I would give the listing back.
The seller MUST realize the price no longer has anything to do with them but everything to do with what the bank will accept.
The seller will get nothing out of the deal either way and it's either lower the price to get another offer or suffer foreclosure I'm afraid
-
Jennifer Mackay
Panama City, FL
-
Olga Simoncelli
New Fairfield, CT
-
Mary Yonkers
Erie, PA
-
Eve Alexander
Tampa, FL
-
Ken Jones
Red Bank, NJ
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Lyn Sims
Schaumburg, IL
-
Diana Dahlberg
Pleasant Prairie, WI
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Allie Angeloni
Oro Valley, AZ
3,448,391
"They rarely approve the very first offer." Not in my experience. The lenders want to reach the NPV. I'd market the property identifying that the lender will approve an offer at $X.
-
Katerina Gasset
Provo, UT
-
Eve Alexander
Tampa, FL
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Lyn Sims
Schaumburg, IL
-
Diana Dahlberg
Pleasant Prairie, WI
-
Allie Angeloni
Oro Valley, AZ
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
685,002
Your question is exactly why I do not like taking on Short Sales and instead refer them out to those who want to specialize in this segment of the market. You either need a good SS negotiator or refer it out. Either way, you save yourself alot of frustrations. IMHO
-
Michael Jacobs
Pasadena, CA
-
John Pusa
Glendale, CA
-
Olga Simoncelli
New Fairfield, CT
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Lyn Sims
Schaumburg, IL
-
Peter Testa
Danbury, CT
785,180
They base their counteroffer on the FMV from the appraisal that was done. See if you can get a copy of the appraisal to show your seller.
Remind the seller that appraisals don't last forever, 3-6 months usually, & that the property can be reappraised in the future.
Submit a Value Dispute if you feel the property isn't worth what they are asking.
Advertise the property at the Amount they want & add in "Short Sale Approved at $XXX, close fast"
And what better plan does this seller have? If you are in a state that allows deficiency judgements they may be liable for the banks loss if it goes to foreclosure.
-
Katerina Gasset
Provo, UT
-
Olga Simoncelli
New Fairfield, CT
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Lyn Sims
Schaumburg, IL
-
Diana Dahlberg
Pleasant Prairie, WI
-
Michael Jacobs
Pasadena, CA
4,795,382
Don't play with the big boys until you are ready. Let someone more experienced "fight" your battles. Your clients will be in better hands.
-
John Pusa
Glendale, CA
-
Greg Large
Grove City, OH
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Richard Weeks
Dallas, TX
-
Lyn Sims
Schaumburg, IL
-
Peter Testa
Danbury, CT
-
Debe Maxwell, CRS
Charlotte, NC
6,772,813
Sorry to hear this Jason, life is to short to deal with these types of frustrations.
I admire those who have the patience for this, I hope that it works out well for you and your clients.
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Bob Crane
Stevens Point, WI
-
Diana Dahlberg
Pleasant Prairie, WI
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Allie Angeloni
Oro Valley, AZ
-
Jennifer Mackay
Panama City, FL
1,598,552
Nnot many shorts sales in our area, better say we don't have them.
Short Sale is a long process.
I agree with all answers - Short Sale Specialist - the one who will help.
By the way, do you have one?
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Richard Weeks
Dallas, TX
-
Diana Dahlberg
Pleasant Prairie, WI
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
-
Michael Jacobs
Pasadena, CA
5,561,189
Exactly what Kathleen Daniels said! It's totally up to the bank. We had much success getting the banks to reduce when we didn't have an Offer in ____ days and we provided sufficient data demonstrating market softening.
Good luck, Jason!
-
Katerina Gasset
Provo, UT
-
John Pusa
Glendale, CA
-
Peter Testa
Danbury, CT
-
Bob "RealMan" Timm
Minot, ND
-
Richard Weeks
Dallas, TX
-
Lyn Sims
Schaumburg, IL
-
Michael Jacobs
Pasadena, CA
2,718,728
Refer this out to a short sale specialist. This Seller is not facing reality; this is only going to cost you time and frustration.
-
Olga Simoncelli
New Fairfield, CT
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Allie Angeloni
Oro Valley, AZ
3,988,144
There is a limit as to what they will do. Unfortunately I have seen them let a home go into foreclosure rather than be realistic about a buyer's offer.
Have you provided comps to substantiate an offer? They probably have a recent appraisal on file but these can be challenged. They also like to strong arm the agent to get you to reduce commission and/or the closing costs/repairs a buyer is asking for. They use all kinds of techniques to increase their bottom line.
There is much to know about how to talk with and negotiate these type of sales. Is there are short sale specialist in your office you can ask for help?
-
Katerina Gasset
Provo, UT
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Lyn Sims
Schaumburg, IL
-
Diana Dahlberg
Pleasant Prairie, WI
-
Michael Jacobs
Pasadena, CA
637,764
I always found that the lender's negotiator would see reason if no offers come in at the higher price that the LENDER wants. Why is the seller pricing it so high that no offers come in?
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Diana Dahlberg
Pleasant Prairie, WI
-
Allie Angeloni
Oro Valley, AZ
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
2,071,336
Why seller does not want to reduce the price?
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Richard Weeks
Dallas, TX
-
Diana Dahlberg
Pleasant Prairie, WI
-
Michael Jacobs
Pasadena, CA
4,419,585
Jason Nenadov try to hire a short sale negotiator.
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Diana Dahlberg
Pleasant Prairie, WI
-
Michael Jacobs
Pasadena, CA
509,499
Sorry to hear that. Perhaps if the seller isn't reasonable you can release the listing and refer to a short sale specialist.
-
Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Michael Jacobs
Pasadena, CA
-
Allie Angeloni
Oro Valley, AZ
-
Debe Maxwell, CRS
Charlotte, NC
2,429,523
I don't normally do too many short sales . In our area prices are not lower as there are a shortage of listings . Sorry wish I could help
-
Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Michael Jacobs
Pasadena, CA
-
Allie Angeloni
Oro Valley, AZ
-
Debe Maxwell, CRS
Charlotte, NC
8,242,772
Thanks for sharing your experience.
-
Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Jennifer Mackay
Panama City, FL
2,564,265
I can not think of any Jason Nenadov and I understand your frustration. You may check with Sally K. & David L. Hanson who have a lot of experience in this area.
-
Michael Jacobs
Pasadena, CA
-
John Pusa
Glendale, CA
-
Peter Testa
Danbury, CT
-
Debe Maxwell, CRS
Charlotte, NC
3,417,759
FIRST the seller should have been educated and informed how a short sale works at listing. Especially in this market you can not under price a short sale and expect the bank to accept it. They are going to want as close to full price as they can. To determine value they have at least 1 interior bpo and at least 1 drive by. They will deduct for repairs, and use a formula which deducts what it may cost to foreclose and hold the property. Every bank is different so no knowing what they will use. Sometimes getting an offer and presenting it lets you know exactly what they will take. The buyer should have also been told and ready to wait 6-8 weeks for an answer. You lost the buyerm but gained valuable knowledge. Seeing most short sales take about 3-6 months, your sellers should have been ready for it to take that time too. NOW you can re-price the property building in a cushion for offers. You can tell all buyers this is the drop dead price the bank will accept. THEN if you can not get a buyer at that price, should also be working with the bank why their price is too high. You often will need 3 estimates of repairs. LOTS of pictures and submit 1 offer that is the highest any buyer would pay.
-
Katerina Gasset
Provo, UT
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
5,394,243
I avoid short sales like the plague... that being said it's very hard to generalize about how "banks" handle them. It really depends on the lender and the investors. The very few times I've listed a short sale, I insisted on a full-time legal negotiator to handle these issues.
-
Michael Jacobs
Pasadena, CA
-
John Pusa
Glendale, CA
-
Peter Testa
Danbury, CT
-
Bob "RealMan" Timm
Minot, ND
1,875,488
What do you mean they don't accept the 1st offer? This reminds me of question from 5 years go. Get the price approved from the lender & just sell it. Get in touch with the short sale dept. This sounds ricidulous.
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Peter Testa
Danbury, CT
5,774,106
Jason,
I think Jennifer Mackay has a wonderful answer for you. Wishing you all the best. A
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Diana Dahlberg
Pleasant Prairie, WI
467,356
Dave Halpern handles short sales, so he may be able to advice you better.
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Michael Jacobs
Pasadena, CA
1,149,097
Just keep pushing. It's very rare that a lender will not accept a short sale. However the numbers do have to make sense. If what they are wanting is higher than market value then dispute it. There are many ways to do this based on who the investor of the loan is.
I've personally handles 100s of short sale negotiations and have rarely not got one closed.
The seler will almost always be forgiven the deficiency so really there is no reason for them to care at all what it sells for.
Short sales are all about setting the right expectations and teaching the lender how to accept the deal. You have to know more about the process than the lender's negotiator you are dealing with.
I LOVE short sales and would be happy to walk you through it. No charge of course. Just for funsies :)
-
Katerina Gasset
Provo, UT
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
3,346,422
You can feel free to call either one of us...we have closed over 300 short sales...not for the weak....and only for the patient: 414 525 0563
-
Katerina Gasset
Provo, UT
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
5,564,046
Jennifer Mackay has you covered!
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
5,182,605
Stuff happens when there is another party involved.
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
1,153,799
Today's distressed property market requires flexible lien holders and flexible Sellers. Where there's no movement expect much wasted effort and time. There comes a time when you have to give it up and earn a living once again. Now is a good time!
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
1,546,924
Right now with prices going upward there is no reason for a bank to accept a short sale.
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
5,585,039
neither I nor my team members participated in short sales.... it's often like beating a dead horse!!!
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
5,205,121
I like what Jennifer Mackay had to say!
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
1,231,903
Ditto, Jennifer Mackay
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
720,287
I guess they have the right to counter offer....to miminize their loss, if any.
Long time ago, I used to have a huge short sale business, and look what happened...
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
2,874,236
I am reminded: I have always counseled to all who can hear to get in or out of a Real Estate trasaction effectively and efficently when presented.
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
921,504
The letter from the representative of the 1st mortgage should not be a surprise. NEGOTIATE!
However, the current owner seems to be inadequately informed regarding the nature of a short sale. Once the owner chooses the 'shortie' option, their only involvement after that comes should the lender choose to pursue a deficiency amount from the owner. THEN, the owner can nix the deal.
If the lender has 'declared' a number at which they will sell, (and BPO or appraisal completed) you now have something tangible, (although not factual) to work with. That's half the battle.
If the lender has not declared a number based on their evaluation process, (not looking at Zillow) keep the existing offer in play. You may need some coaching regarding this. Do not allow the clock to reset.
The current owner should be further informed that 'shorties' are the wild, wild west of real estate. Even with the best of intentions the outcome is not guaranteed. Banks will do whatever the H*** they want to in defiance of ALL LOGIC.
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
4,434,277
3,083,753
We get first offers approved all the time.
Counter offers are typical for some lenders.
What I don't understand is the seller not reducing the price.
It makes no different to him since he is short selling except for tax purposes, which the loss can offset the gain in the debt - but talk to a good tax accountant about that part. But still, the amount he lowers it to, has little effect on the loss he has to report. He most likely get the deficiency forgiven.
We always back up our seller documents with CMAs, and any appraisal on file. We send in to the lender a complete package with everything to back up the buyer's offer, etc.
And then we escalate our files. Depending on the lender, the escalation process is very well work the time. We close 98% of all of our short sales and we had done hundreds.
-
Peter Testa
Danbury, CT
1,642,685
Send the comps to the bank when you resubmit the next offer.
The seller has nothing to lose by lowering the price, he/she is not making any money and they are on a deadline for foreclosure. I'd remind them of the pending bigger loss if you foreclose, it's detrimental to their credit for 7+ years vs. 1-3 years on a short sale.
BTW: Short Sale negotiators are a waste of time and money, agents that hire them are passing off their responsibilities. YOU are the negotiator or you shouldn't have the listing.
-
Bob "RealMan" Timm
Minot, ND
1,759,437
Based on your fact scenario, your seller has few options and none of them good. Consider a DIL
-
Bob "RealMan" Timm
Minot, ND
3,986,529
6,057,438
We luckily have not seen short sales for years, and I never participated in these. Good luck.