Steven Senter

Short Sales: Buyers

Homebuyers looking to get a great deal on a Short Sale Listing need to know and follow a few rules in order for their offer to be really considered at the Short Sale lender level. Probably the most taxing job for the Realtors and attorneys on a Short Sale deal is educating the buyer as to the appropriate expectations of what is to come when the offer is submitted to the lender for approval.

For starters, the buyer needs to understand the Short Sale lender will not, under any circumstance, care what the buyer's timeline for closing might be. Lenders are overwhelmed by the sheer numbers of Short Sales being sent in to them for consideration and there just is not enough labor to go around. Furthermore, I find that buyers often are very disappointed when they submit (usually a fairly low offer) and then expect the lender to respond within a few days!! Crazy thinking on behalf of the buyer! It may be a month or two before the listing side of the transaction can even get far enough through the process to even get to someone in Loss Mitigation Dept. that can shed some light on the file. Buyers have to understand there are NO fast answers on short sale files. Just the way it is.

As a buyer (and for buyer Agents out there) if you want your offer to have the best chance for the fastest approvals (I did not say fast!), then follow these rules:

•· Do not make offers that are ridiculously low priced, it can be low but get real with the numbers

•· Do not include home sale or closing contingencies (lenders are not interested in approving a short sale to have the buyer not qualify)

•· Make sure your buyer's Agent provides a very strong lender approval letter with figures that match your offer

•· Do not ask the lender to provide surveys, home warranties, etc for the buyer's benefit (not going to get approved)

•· Make sure you are taking the house "AS-IS" as the lender typically will not make any repairs and the seller is prohibited as well

•· Include closing cost credits if necessary as usually the lender will approve some of those

•· Make sure you have a flexible agenda so you can close within 30 days after getting an official approval letter from the lender

In summary, the key is to make reasonable offers (relative to true market value), organize your offer so it all hangs together, don't ask for anything from the lender that is solely for the buyer's benefit, and set your timing expectations realistic to allow enough time for the Short Sale lender to approve the file. We have gotten numerous approvals for our Short Sale sellers and produced some very excellent ‘deals' for many buyers. Remember, Short Sales can be great deals but you as the buyer ‘earn' then by following the above guidelines and being patient.

Here at Gryphon Properties and Management Co. we specialize in working directly with Short Sale sellers, and with Agents who need our help and expertise in negotiating files with the lenders. Subscribe to our Business Page on Facebook here: http://www.facebook.com/#!/pages/Saint-Charles-IL/Steven-Senters-Short-Sale-Senter/342628328132?ref=ts Or give us a call at 630-513-3906! We are here to help!

Short Sales: Sellers

Almost every Short Sale file we take on here at Gryphon Properties & MGMT Co. (GPMC), I get asked by the seller what I think the outcome will be regarding the ‘debt' that is relieved. And my usual response includes an education specific to the seller as to what types of loan(s) they have against their property and to what purpose the money on those loans was used.

Here's the point. The seller usually has this attitude that the total amount of the loss should be eaten by the bank and no responsibility or liability should be on the seller. Now, when we negotiate the file with the lender we are after a final outcome including a total relief of the debt without any judgments/promissory notes. But here is the thing to consider: If the seller used their home's value to go on vacations, pay for a child's college, living expenses, etc. the lender has a very tough time just letting the seller just walk away free and clear!

I had a seller who spent over $100K on a second loan (HELOC) for their child's college education. While there was hardship and the seller did qualify for a Short Sale, the seller could not comprehend why they ‘might' be liable for settlement of the $100K debt, like 10% or so. Totally not clicking with the seller.

I asked the question in this manner to them, "So you used your home [value] as an ATM machine to pay for little Timmy's college (because you did not plan well enough to actually start a college fund for little Timmy when he was...oh say ...2 years old!) and now you are in trouble financially with your job and property and you want the lender to eat your loss 100% and you basically get to walk away with Timmy's college paid for 100% by the LENDER with no recourse or liability on your part??" Makes no sense guys.

The point here is to remember to be realistic with your expectations. Short Sales can help sellers relieve tremendous hardship and debt and evident foreclosure but the concept here is to have a sense of reality with the whole thing! At GPMC we work hard to get the Short Sale not only approved but also with 100% of the loss taken by the lender. And so far we are still at a 100% file approval with no judgments filed nor promissory notes issued by those lenders. If you are in need of a credible Short Sale negotiation TEAM to work for you, check us out our Facebook Business Page here! Or call us at 630-513-3906. http://www.facebook.com/#!/pages/Saint-Charles-IL/Steven-Senters-Short-Sale-Senter/342628328132?ref=ts

Short Sales: Sellers

Almost every Short Sale file we take on here at Gryphon Properties & MGMT Co. (GPMC), I get asked by the seller what I think the outcome will be regarding the ‘debt' that is relieved. And my usual response includes an education specific to the seller as to what types of loan(s) they have against their property and to what purpose the money on those loans was used.

Here's the point. The seller usually has this attitude that the total amount of the loss should be eaten by the bank and no responsibility or liability should be on the seller. Now, when we negotiate the file with the lender we are after a final outcome including a total relief of the debt without any judgments/promissory notes. But here is the thing to consider: If the seller used their home's value to go on vacations, pay for a child's college, living expenses, etc. the lender has a very tough time just letting the seller just walk away free and clear!

I had a seller who spent over $100K on a second loan (HELOC) for their child's college education. While there was hardship and the seller did qualify for a Short Sale, the seller could not comprehend why they ‘might' be liable for settlement of the $100K debt, like 10% or so. Totally not clicking with the seller.

I asked the question in this manner to them, "So you used your home [value] as an ATM machine to pay for little Timmy's college (because you did not plan well enough to actually start a college fund for little Timmy when he was...oh say ...2 years old!) and now you are in trouble financially with your job and property and you want the lender to eat your loss 100% and you basically get to walk away with Timmy's college paid for 100% by the LENDER with no recourse or liability on your part??" Makes no sense guys.

The point here is to remember to be realistic with your expectations. Short Sales can help sellers relieve tremendous hardship and debt and evident foreclosure but the concept here is to have a sense of reality with the whole thing! At GPMC we work hard to get the Short Sale not only approved but also with 100% of the loss taken by the lender. And so far we are still at a 100% file approval with no judgments filed nor promissory notes issued by those lenders. If you are in need of a credible Short Sale negotiation TEAM to work for you, check us out our Facebook Business Page here! Or call us at 630-513-3906. http://www.facebook.com/#!/pages/Saint-Charles-IL/Steven-Senters-Short-Sale-Senter/342628328132?ref=ts

Signed up with National Quick Sale today. They are a third party negotiation company 'hired by' but not 'paid by', lenders. Everhome Mortgage is the lender who put them on me as I currently have a file into them for approval. NQS charges the Agent a $99 annual membership fee, 1% of the deal on the HUD (paid by the Agents) and then a $250 processing fee on top of that. I asked if NQS sends out a bag of ice and Advil with this 'amazing' offer, just to help with the swelling! I did not even get a giggle from that one. Fact, I bet she did not even smile.

So I asked, what if I do not allow myself to be blackmailed into this incredible opportunity to be part of the coveted membership. Answer: the bank will foreclose on my sellers and it will be all my fault. Wow. This is what Short Sales are coming to I guess.

Being a sucker and upholding my fiduciary responsibility to my sellers, I whipped out my trusty Realtor credit Card and signed right up. In essence, I am now paying for the opportunity to work with Short Sales. Did not see this one coming, I have to admit. I just hope I get a button or lapel pin. Maybe a secret handshake so when the BPO comes in at some ridiculous value, it will just miraculously get adjusted to reality! Cherish the thought........

So, my plea is for everyone holding a Everhome Mortgage and is in need of Short Sale, contact me at www.shortsalesenter.com or Facebook me cause I would like to close as many of these with NQS just to recoup some expenses! Kinda like a buffet where you get two scoops of ice cream because it all costs the same!!

All kidding aside, we have a 95%+ closing rate on our Short Sale Files so we really do take this all very seriously. You just have to keep you sense of humor about the whole thing or you will lose your mind! ~Steven

Seems like I just keep coming across folks who are really confused about the Loan Modification process and the Short Sale process. I get that call of desperation from a confused homeowner who is in financial turmoil and in the midst of a loan modification that seems to be going nowhere. The simple question to ask is "Do you want to stay in the home, if you can afford it?" Spoke to a caller today who convincingly answered 'NO' to the question. Then a loan mod is completely the wrong solution to the situation. Instead the caller needed to get out of the home altogether and move on with life.

The difference is a loan modification is designed to help people who have suffer a temporary setback, stay in their current home. The short sale process is designed to liquidate a property that is upside down. See the difference?

Alot of confusion out there and many could really benefit from knowing the proper solution for them. Unfortuanatley, there does not seem to be many places for these people to get good & credible information.