Over the last 9 months we have had a pre-foreclosure listing and have done everything to market the home and to no avail the home still went to auction. With over 55,000 listings in ARMLS and more than 1500 homes that require lender authorization it makes it difficult to compete. As soon as a buyer sees “lender authorization” the low-ball offer is not far behind. This particular listing the lender resisted lowering the price until the “notice of trustee sale” and by then qualifying for a loan got stricter and we lost out on a couple deals.
This is not my first short sale home and it has been my experience that it’s like pulling teeth to get the lender to agree to a marketable list price. I feel if they had the property listed properly from the beginning and didn’t wait for 30-60-90 days to reduce to the acceptable BPO price the home would retain better and it would assist in lender and Realtor negotiations.
In the market we are in it is critical to “put your best foot forward”.
I have several other pre-foreclosure and short sale listings and am trying to get the lender to move quicker on lowering the price so we don’t get stuck in the position of the one that just went to auction. The lender isn’t the only one that suffers; the homeowner suffers at least as much. The problem with lenders is all the bureaucratic red tape. With all the hype of another wave of ARM’s coming due, lenders need to act quickly or lose even more value. Let’s not forget that real estate is cyclical and come November it is typical things will slow down substantially.
I have sent countless market analysis that show the values of home active and being sold but lenders don’t seem to react before 30 days. Have any AR agents had any better response from your deals and how did you achieve them?
Robert Jones,pllc
Designated Broker
JG Realty,llc
Welcome to JG Realty, llc. We specialize in residential resales, investment properties, property management and new home purchases. 90% of our business is referral...come experience the difference!
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2008 ActiveRain Corp. All Rights Reserved
The lender will listen if you show them the signed sales contract by the owner which is a price below the mortgage amount. Then you negotiate the price down from there.
David,
Thanks for the response.
It seems like the negotiating when we have a signed contract is easy and usually considerably well below the list price. The problem I have is the lender reaching a marketable list price so we actually receive offers.
Rob