Short Sale Agreements?

Question

Hello.  We are trying to negotiate with a few lenders and was wondering if anyone knows where to get some contracts.  The main contracts "I think" I would be looking for is a release form so I can speak with the bank and also a agreement between the seller and I.. If I have a successful negotiation he/she is obligated to sell to me.  Thank you so much.

Jackie Patterson · Answer

[We are trying to negotiate with a few lenders and was wondering if anyone knows where to get some contracts. The main contracts "I think" I would be looking for is a release form so I can speak with the bank and also a agreement between the seller and I. If I have a successful negotiation he/she is obligated to sell to me.]

Please don't be offended, but if you are looking for contracts and "think" you need a release form, you are not ready to negotiate short sales.  It's quite a responsibility to negotiate a short sale for a homeowner, and there are many legal implications.  In addition you need to be compliant with the new MARS short sale disclosures.  To successfully negotiate a short sale you must be very well-organized, tenacious and have a thorough understanding of the short sale process.

I would suggest if your interest is in buying short sales, that you have a short sale specialist negotiate your offer, or rely on the Realtor to submit your offer and negotiate it.  You would not be doing yourself, or the homeowner, any favors attempting to do it yourself.

Jackie Patterson · Answer

Thanks, MaryAnn.
I think too many people think they can manage a short sale, and if it doesn't work out they just walk away.  They forget that a distressed homeowner is entrusting them to look out for their best interests.  The homeowners are the ones really hurt if it's not properly managed.

Jackie Patterson · Answer

That's a great way to do it.  You can also contract with a short sale negotiation company.

Scott Menke · Answer

Knowing little about the short sales process, I am meeting up with another investor who is skilled in the topic. He will train me then we will partner on deals. I would suggest you try to find a setup like this to help you get going.

Maryann L. · Answer

I agree with Jackie.

Not to mention the Federal Trade Commission just imposed some very strict rules on short sale negotiation.  People without the proper disclosures in their contracts can face HEFTY fines.

Kathy Utiss · Answer

Oops here's the blog page
www.foreclosurehamlet.org/profiles/blogs/departmentofcorruption-black

I decided about six years ago I couldn't work for such entities. Real estate isn't bad if you understand it more and less than others. It's amazing what people try to pull.

Good luck!

Kathy Utiss · Answer

Short sales really aren't that tricky. There is a method to the madness. The main question is why should the bank accept a short sale offer? Are you selling? Upside down? Are you still trying to keep the home after the short sale? What are your capabilities of repaying the debt? While all these are important the most important thing is do you have someone with any authority at your pretender lender/servicers office to do educated decision making?

First of all a full debt to income analysis on your situation should be done. Usually your (DTI)Debt to income ratio is based upon your secured and unsecured debts due each month. These usually consist of mortgage payments, secured loans, car loans, credit cards, student loans and medical debts. Just like when your loan was originated.

Then the details of the property have to be considered. 
Location
value of property vs amount due 
detailed expense and repair of home list 
Npv vs current market value and originating lender 
Who is your servicer representing? Are they the beneficial owner? Without a court order they won't tell you remember this!

Which could bring on another whole set of issues that make an atty hard to find in handling such cases. But you never know. There are many unscrupulous dangerous people in the banking industry. Here's one of my favorite blogs about the judicial dept and how some of them really act.

But you need an authorization to share and or release information to help rectify what your trying to accomplish.

Best of Luck!

Kathy

Laura Alamery · Answer

Most lenders have a short sale package or a checklist of what documents they need. They might also direct you on their website where you can download them. Also I have seen in several forums that other investors post links to sites where they have short sale package forms or you can Google them.
As far as negotiating ... that is the tricky part, since it can make or break the deal. If you don't have any experience yourself, partner with someone who does on the first few deals and get some experience before venturing out on your own. 
Offer part of the profits to negotiate the short sale and listen in to the phone conversation and follow the email correspondence between him/her and the lender.

Bill Patterson · Answer

The homeowner needs to sign the short sale approval and if they or their financial and legal advisers don't think that the terms of the approval (deficiencies, notes, cash to the table, etc) are acceptable, they can decline to accept it.  It would be hard to "obligate" them 100% to sell to you.

Short Sale Agreements?

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