{"id":484,"date":"2016-05-16T09:49:53","date_gmt":"2016-05-16T13:49:53","guid":{"rendered":"http:\/\/www.realestatejunkie.com\/blog\/?p=484"},"modified":"2016-05-16T09:49:53","modified_gmt":"2016-05-16T13:49:53","slug":"short-sales-still-sailing-strong","status":"publish","type":"post","link":"https:\/\/www.realestatejunkie.com\/blog\/short-sales-still-sailing-strong\/","title":{"rendered":"Short Sales Still Sailing Strong!"},"content":{"rendered":"

\"short<\/a>Right now, in my office, I am receiving short sales from sellers who decided to do a loan modification which was only valid for 3-5 years.\u00a0 In my opinion, this is the second wave of short sales that you will be coming across.\u00a0 Many Investors stay away from short sales because they say it takes \u201ctoo long\u201d or they do not want to the negotiate the short sale<\/a> itself.\u00a0 After speaking with them, I find out that they really don\u2019t understand the short sale process.\u00a0 So they miss out on BIG profits that are available by making offers on short sales that are listed and\/or controlling the whole deal by finding the seller that needs to do a short sale, list it and have a title company process the short sale.\u00a0 When you close and make your $thousands$, that would get you real excited about short sales!\u00a0 The key to a successful short sale is making sure that the Short Sale Lender has the correct value on the property and this is where so many Investors and Realtors fail!<\/p>\n

Many title companies will agree to negotiate the short sale on the property for the cost of title work so all they need is the financial package from the Seller and a Purchase Agreement from YOU!\u00a0 In fact, title companies are contacting the Seller directly, so you do not even have to obtain the information from the Seller when it is needed.\u00a0 Why, then, are Investors not making offers???\u00a0 I believe it is due to a lack of knowledge.\u00a0 You have to know what to tell the title company\u2019s negotiator to say to the short sale lender\u2019s negotiator if you want to create a great discount.\u00a0 My Home Study Course teaches you what to say and ask, in order to create your great discount.<\/p>\n

I believe that every Investor should have the knowledge of how a short sale works so that when they make an offer on the house, they make sure that the Realtor knows the key to a successful short sale which is the value of the home!\u00a0 The process of the Short Sale is very simple, you need a HUD, Purchase Agreement, Financial Package, Proof of Funds letter from the Buyer and an Authorization.\u00a0 Once the Short Sale Lender receives this information, they will schedule someone to come out and obtain the value on the property.\u00a0 That someone could be a Realtor or Broker which performs a BPO (Broker Price Opinion) or an Appraiser who completes a full appraisal.\u00a0 I always recommend the following:<\/p>\n

    \n
  1. Make sure that the lock box code to the house is not on the MLS or they will sneak in without you.<\/li>\n
  2. Make sure that there is not an electronic lockbox on the home.<\/li>\n
  3. Make sure that YOU as the Buyer are able to meet the Appraiser or Realtor.<\/li>\n
  4. Make sure that you bring a copy of the Purchase Agreement.<\/li>\n
  5. Make sure you have 3 Sold Comparables, no more than .5 miles away, that have closed within 3 to 6 months.<\/li>\n
  6. Make sure you have a Rehab Estimate, or two, including all the major problems with the house with pictures of what needs to be repaired<\/li>\n
  7. Make sure that YOU are at the house 30 minutes prior to appointment time, they often show up early and you\u2019ll miss them.<\/li>\n<\/ol>\n

    \"group\"<\/a>Many Investors\/Buyers will allow the listing agent to control the BPO\/Appraisal and they don\u2019t even meet that person there to provide them with the information of the house.\u00a0 Therefore all parties, Buyer, Seller, listing agent and selling agent are always confused as to why the value did not come in at a reasonable value for the house.\u00a0 Many Realtors\/Appraisers will not even consider any of the repairs and they are left to guess because it takes extra time for them to figure out the cost of the repairs, which they are not willing to do.\u00a0 Also, the Short Sale Lender does not consider any cosmetic repairs as a \u201cqualified\u201d repair.\u00a0 What are cosmetic repairs?\u00a0 Carpet, paint, appliances, landscaping, and updating the kitchen and bathrooms.\u00a0 What are qualified repairs?\u00a0 Air conditioner, plumbing, roof, electrical, drywall damage, missing cabinet doors where the cabinets will need to be replaced, mold, and major damages, etc.\u00a0 On the Rehab\/Repair Estimate, should you still include the cosmetic items that the Short Sale Lender does not consider?\u00a0 Definitely yes; however remember you must have other qualified items included on the Rehab\/Repair Estimate as well, or the BPO Agent\/Appraiser will state there are no repairs needed in the home.<\/p>\n

    An Appraisal value is good for 4-6 months on a Fannie Mae, Freddie Mac, and FHA file.\u00a0 A BPO value is good for 90 days.\u00a0 So \u2026 if your Rehab\/Repair Estimate is considered along with comparables, you should be able to purchase the short sale at a great discount!!\u00a0 Remember, if you are in a Seller\u2019s market and you are seeing the values increasing monthly, you should have a slam dunk!<\/p>\n

    Please keep sending me your questions and topics that you would like to hear about, so I can be sure to keep feeding you with the information that you need in order to move confidently through 2016 and bring your Real Estate Dreams to Life!<\/p>\n

    Happy Negotiating!<\/strong><\/span><\/p>\n

    Kimberlee Frank<\/span><\/strong><\/p>\n

    www.ForeclosuresGoneWild.com<\/a><\/p>\n

    www.RealEstateJunkie.com<\/a><\/p>\n

    www.ShortSaleNegotiating.com<\/a><\/p>\n

    www.SellFastRealty.com<\/a><\/p>\n

    Like me on www.facebook.com\/foreclosuresgonewild<\/a><\/p>\n

    Like me on www.facebook.com\/sellfastrealty<\/a><\/p>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    Right now, in my office, I am receiving short sales from sellers who decided to do a loan modification which was only valid for 3-5 years.\u00a0 In my opinion, this is the second wave of short sales that you will be coming across.\u00a0 Many Investors stay away from short sales because they say it takes […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,11],"tags":[41,34,4,21,8],"class_list":["post-484","post","type-post","status-publish","format-standard","hentry","category-local-guru","category-free-articles","tag-florida","tag-mentoring","tag-real-estate","tag-short-sale","tag-short-sales"],"_links":{"self":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts\/484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/comments?post=484"}],"version-history":[{"count":0,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts\/484\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/media?parent=484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/categories?post=484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/tags?post=484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}