Once the Realtor has determined it is a deal that fits the criteria of The- Solutions Group, you email our assistant to prepare all paperwork which is returned to you, the Realtor.
Realtor emails all paperwork to the seller and sets an appointment with the home owner for the next day to have paperwork completed.
Step #2... Realtor collects all paperwork from the seller...
Authorization to release
Notice of Option
3 Day Notice
Affidavit of Understanding
No Brokerage Relationship Disclosure
2 Months Bank Statements
2 Months Pay Stubs
2 Years Tax Returns
Freddie Mac Form
Step #3... Realtor returns Completed Paperwork to assistant & Realtor lists property for sale….
Realtor has Investor sign option contract, notice of option contract and a listing agreement.
Realtor delivers complete package to our assistant.
Assistant inputs transaction into database and assigns a task to BPO agent to do BPO
Assistant prepares HUD-1 and emails entire package to negotiator for offer of 50% of realtors list price.
Realtor lists house for price they believe it will sell for in 60 days.
Step #4... BPO agent does BPO and prepares estimate of repairs…
BPO agent takes pictures to document any damages of the property, puts together repair estimate and a “30 day quick sale value” BPO, and emails BPO to the negotiator and the realtor.
BPO agent gives Realtor her opinion of a 60-90 day value and Realtor adjusts list price accordingly.
While this is happening, the negotiator has already faxed in the authorization to release and is now authorized to speak to bank.
Negotiator adds the BPO to the short sale package and submits to loss mitigation department.
Step #5... Negotiator is working to have the BPO ordered and the Realtor is showing property..
It is VERY important that the house is listed for what we can REALLY sell the house for to a cash (or 20% down) buyer by the time the interior BPO is ordered.
If house is not showing…. LOWER LISTING!
Realtor does not have to ask Investor permission to lower listing.
Negotiator tells bank that they will be the contact for the bank. When bank’s agent or appraiser calls them to do the BPO, negotiator tells them that BPO agent will call them soon for access instructions.
Our BPO agent tells bank’s BPO agent “ we got this offer for 100k, we are trying to sell it for more, but we have it listed for 150k and haven’t had a single showing ”
Use the Jedi Mind Strategy!!
Our BPO agent calls the bank’s BPO agent a few days later and says “ Hey, we are trying to get a higher offer but I will have to lower the listing to do so. What did the BPO come in at so I can adjust accordingly?”….. “If I lower it to 135k is that too high?”
Our BPO agent emails Realtor and negotiator where she thinks it came in.
Bank tells negotiator “ Your offer of 100k is way to low, and we are only paying 5% commission, and we are not paying the 1% negotiation fee. We need an offer of 135k to move forward…”
Negotiator communicates with Realtor to see what they think it will sell for. Realtor adjusts list price to 149k and places in Realtor Remarks “SHORT SALE APPROVED, Listing agent has received verbal short sale acceptance and just needs full price offer to move forward with everything.
Negotiator raises offer to 125k and reduces commission and throws out negotiation fee, but keeps 6% concession on HUD (net offer of around 113k).
Once negotiator comes to final terms with bank, negotiator tells bank we need 30 days to close.
At the same time, Realtor is negotiating with buyer and tells buyer they need to close in 21 calendar days from the date of written acceptance.
At this point, if we know we are pretty much getting the acceptance letter, realtor will tell the buyer (or buyers’ agent) to go ahead and order appraisal and inspections even if we haven’t received written acceptance. If anything falls apart on our end, Investor will reimburse buyer for appraisal and inspection (we will even put this in writing).
Realtor has Investor Sign Contract.
Step #9 Closing the “A to B” and the “B to C” the SAME day ….
Negotiator emails the acceptance letter and preliminary HUD that was sent earlier to the bank’s (make sure the numbers match) Closing Agent at Title Company.
Closing agent is communicating with buyer and their banker or broker to determine date of closing.
Closing agent puts together final “A to B” HUD, and sends to loss mitigation department for approval a few days before the anticipated closing.
HUD gets approved for “A to B”. Package from lender, gets sent to title company for “B to C”. Closing agent closes both transactions with investor and buyer.
All offers subject to a 3 rd party approval. Listing agent is in the process of negotiating a short sale. Please call for details. All non-cash offers must prequalify through Seller’s mortgage company. No FHA offers please.
SHORT SALE APPROVED! Listing agent has received verbal short sale acceptance and just needs full price offer to move forward with everything. Please call for details. All non cash offers must prequalify through sellers mortgage company. No FHA offers please.