You think short sales are tough? All it is, is doing what you have been doing all your life.
Go way back when your mom or dad said no. What did you do? How did you respond? Did you just say okay?
That's all it is, asking for something you want and negotiating and explaining in a persuasive way why you should have it.
Look at the bank (loss mitigation department) as your parents. I don't know about you but when my parents said no I would figure out another way to present my case and go at it again. I remember when I wanted a mini bike. You know, one of those dangerous toys that you could get yourself killed on by someone running you over because you rode it down the street.
I did not get it on my first request. It took me a few tries to negotiate why I should get the mini bike. I just provided better information to them and stayed persistent. And guess what, just before Christmas, not long after I had requested why I think I deserved the bike, my father and I went out shopping looking for a mini bike.
I was negotiating the best and coolest bike that I could find. Did I get exactly what I wanted? NO, I got an even better one. It was a HUNTER green mini chopper and it was so cool. Better then I could ever have expected.
Well that is how I negotiate with the banks. I present my request and shop around looking for the lowest price I can offer and I go for it. I might get an answer of "no" the first time but that will never stop me from thinking of another way to negotiate with that bank mitigator. For example, providing pictures, low comps, REO listings, etc…
The Loss mitigation department will sometimes counter back and guess what, I had offered so low that they came with a counter of a few thousand more than what I had offered. I was good with that because I had a buyer waiting with a price I had negotiated with them to sell the property, which was higher than what the bank was willing to accept. It was a WIN, WIN, WIN for everyone.
Here is what you need to request your offer with the bank:
1) Authorization to release information.
2) Hardship letter from the seller.
3) Purchase and sale agreement, matching HUD 1 with your net net net requested price line 504 (and 505 if there are two loans)
4) Financials from seller. (financial worksheet, taxes, bank statements, pay stubs)
5) Proof of funds for your buyer.
6) Listing agreement only (not MLS listing)
Who else have you had to negotiate with throughout your life? Brothers, sisters, grandparents and the list goes on and on. How about all of the school teachers you have had over the years. Did you have to negotiate with your elementary teachers? How about Middle school? Most of us have encountered times when an assignment was due and we didn't have it done. We in turn had to negotiate more time to get it done. How about a test that you did not do so well on? Did you negotiate some extra credit to raise your grade?
Those are just a few of the many examples of things that you negotiate in your life. If you just sit back and think about it, I am sure you will see that every day of your life you negotiate something.
Well the banks are no different. When you learn the lingo and the process you will know exactly how to get a file accepted. Basically all you are doing is following up with them making sure they are doing what they need to do. You know, making sure they received your file and that it goes to the right department. Once it gets assigned it is just a matter of continuing to follow up to make sure your file stays on the mitigators desk as an active one. It is amazing how easy it really is. I promise you it is not hard at all. You just have to be persistent.
I have negotiated a 1st mortgage where I bought a 3300 square foot home for $1,000.00. That's right, a 1st mortgage for only $1,000.00. It was not hard at all. The bank mitigator asked me what I was willing to pay and I responded "What will you take?" Answering a question with a question does work a lot. She finally said "look, I need to know what you will pay." And I replied "a thousand dollars". She laughed and said "They will never take that but I will present it to whoever is in charge and see what they say." My phone rang 15 minutes later and it was the mitiagtor. She said "Guess what? They will take it." I jumped for joy and said "Here is my bank account number." "Seeing as I bank with you just take it directly out of my account."
You see, it is not hard to negotiate. Just stick to your price. Would I have paid more? Probably, but why?
I sold that house later for $150,000 for a profit of $110,000 on one deal!
Good luck negotiating your way to the top.
Hunter Paschall
HP Investment Group, Inc.
407-834-1325
Fax 407-386-7616
hunter@hpinvestment.com
Hunter Paschall's Real Estate Training Events
Bring your tackle box and come hear the local experts teach the art of fishing and hooking that great deal!! They will start with the basics of which bait to use. They will then show how to cast your line out, how to hook your deal & reel it in and what to do with it once you have it in your possession.
