Getting Short Sales Approved

[Jaago Viitkin]

Wholesale, New Jersey, South Florida, Short Sale, Hot market...

Fellow Wholesalers what tricks are you using to get Short Sales approved in competitive markets?

-Low inspection days?

-High deposits?

-What else could work?

TNX EVERYBODY

[Wayne Brooks]

There are really just four basic requirements;

Owner gets approved to do a short sale based on their financials/hardship

Property gets listed on MLS, usually for 5 day minimum

Qualified buyer on the purchase contract:POF or preapprovals

Bank agrees to the price, as they will be looking for close to current value. Part of that equation are negotiated pay offs to junior lien holders, HOA's, etc. Repair estimates for major items (cosmetics won't be considered) submitted with the contract can help.

Working from the seller's side, we always require inspections up front, not after bank approval (60-90 days later).

[Marc Celestin]

Hey @Jaago Viitkin ,

1)Have a good negotiator 2) stay away from banks who typically are difficult or less likely to discount a property 3) make sure you are there for the BPO to point out all issues, 4) provide the BPO agent with comps - some will accept, others may not and 5) build relationships with the reps

[John Kent]

@Jaago Viitkin 

Inspection days - doesn't matter. Use the local norm.

Deposit amount - doesn't matter. Make it look legitimate.

The setup is very important in getting an approval. For an investment purchase this is the second most important part. Most just throw as many deals against the wall to see what sticks and completely ignore the setup because it requires skill and some situation complexity. 

The second most important part is the bank's asset valuation. Be it a BPO or an appraisal this is the most important part of the deal. Having done hundreds of BPOs over the years, I can tell you that a lot of deals die here either because the real estate agent/investor treat the BPO as an inconvenience or something that they can manipulate at will or because of politics on the lender/AMC side.

Lastly, the negotiation with the lender is more than just sending in the documentation and waiting for an answer then complaining when there is no answer or the wrong answer. As Marc mentioned it is about building a relationship with the negotiator. Often a small feeling of personal investment by the banks negotiator can present the opportunity for requesting exceptions when needed to get the deal done. 

[Don Colagrossi]

interesting topic .  I am in this very situation. 

Short sale.   House on the market for over 400 days. Seller wants out and has agreed to sale price.   Negotiator appears to be proactive. Bank just sits. Proposed closing is next week.   Still no answer. Anyone ever deal with Nationwide?

[Jaago Viitkin]

@Wayne Brooks Thank you so much for good information. Do you go to FL meetings? I would like to say hello.

[Jaago Viitkin]

@Marc Celestin Thank you Marc for your feedback. I am wholesaling in South Jersey with my partner and doing good. Harder to find deals in Florida

[Jaago Viitkin]

@John Kent Thank you John, great information. Thank you for taking time and writing and explaining your answer

[Jaago Viitkin]

@Don Colagrossi Good luck let me know how it went