[JoDee]

ok - question,
as short sale is another option for client you are trying to do loss mitigation for, how do you work that then to your benefit? call me totally blond - but, am I going in as the buyer, then selling to another buyer? I actually may have a buyer already for my client. but are they my buyer or my client's buyer? getting totally confused. because they have just received nod, and need help. so I am trying to help them, they have already agreed taht short sale would be the option to go, what would I do from this point? am I going to still intervene and contact the bank to see if they will lower the price for the client? Please help - I know I have the idea - but now - I need someone to look at this from the outside as my brain is going around in circles....totally confused - and I know it is probably a totally easy answer - my brain has just passed that point..

[hernandezlossmit]

It's gonna have to be listed in an MLS with a Real Estate Company. The bank wants to see that the property is on the market before they will accept a short sale. Your only incentive then would be a referral fee from the agent because he then would be in contact with the borrower's bank.

Are you an agent??

[877YouKeep]

There are way more creative ways to work short sales my suggestion is to position yourself as the buyer and put the property in a Land Trust, once it is in a land trust you become the beneficial interest, you are in control. When it comes to an agent there are many agents in your area that will put the property on the MLS for about $200.00, that will satisfy Loss Mit and you market the property. You can possibly give the homeowner some moving money but tht is NOT to be discussed with Loss Mit. Do not pay any money until the deal is done you can get burned. I want to stress 877 does not do short sales but I know the business because that is where i started 5 years ago. Ask more questions and I will give more details.

I have recently seen FSBO is acceptable and will check with a few more companies to verify.

[877YouKeep]

The answer is no. I checked with Fannie, Freddie, and many subprimes. I can not have a blanket statement and say all investors but the major ones do not require MLS. Many of the phone solicitation teams in loss mit have been programmed to say they do but it is not a requirement. Ask to speak with Loss Mit manager if you get a push back and not the phone rep manager a manager that manages the negotiators.

[JoDee]

I wonder if them listing it on MLS would make them the contact person or would make them a part of the equation... I have a possible buyer already for this property, and the owner actually has a real estate license, (she doesn't understand anything about short sales - she actually is a builder) I guess I really don't understand the reasoning behind the MLS thing - unless it means you are "going public" with the sale or something...

[adamil]

I was really confused by this myself. The way I have had it explained to me is that the lender will not accept a short sale unless the owner has tried to sell the property for what its worth and failed. . Otherwise people could short sale properties to thier friends for huge losses to the bank. The whole point of the mls is to prove that the owner really tried to sell the house and that the only way it could be sild was as a short sale.

[877YouKeep]

No, the reason for a short sale is so the bank does not have to take the property back and market as an REO with holding cost, insurance, taxes... the lender knows their magic number and will sell the property with or without it being listed. A sale has to be an arms length transaction, can not sell to immediate relatives. Believe me I have spoken to probably 6 short slae negotiators that work for banks today to be sure.

[JoDee]

that is understandable - but what I was confused was why it had to go on MLS.
Totally different situation than I mentioned above, there is this house that I know just went through sheriffs sale, is currently listed for sale by a realtor, and I have been told that her price she has it listed is the short sale price (by another realtor), and that once the redemption is over, that the price will go back up another 200k, because that is what the sheriffs sale was at. I find this hard to believe as to why would a realtor advertise the actual short sale price? it's not a short sale then is it? if that's the low ball price, then that is actually the fact that most likely she has been contracted by the bank to sell it. if she was hired by the owner in redemption, then most likely that is listed at the market price, and there is still the availability of short sale - I mean why would the realtor list it (atleast in this area they DO NOTHING FOR FREE) for free "short sale price" - she is going to make a good penny on it... what are your thoughts?

[877YouKeep]

not knocking realtors there is definitely a need for realtors but some and actually most are satisfied with the 3 to 5% commission. I see it all the time they leave so much money on the table by not thinking like an investor. realtors there are some cool techniques that will net you much more than your commission and are ethical.

[pat]

How do you in your short sale experience see the 1099 situation -how often do you think the bank follows through with it with regards to a short sale? Also, I negotiate many short sales and seem to sometimes get stuck jumping through the hoops-wasting time. I want to get to Loss Mit, who won't talk to me until 90 day dept has THEIR pkg filled out - even though it's the same information in a different format. Any clues for me?