23 Powerpoint 5 Reasons Why Not


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Why short sales don't CLOSE...

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23 Powerpoint 5 Reasons Why Not

  1. 1. <ul><li>5 Reasons why Short </li></ul><ul><li>Sales Don’t Close... </li></ul><ul><li>Bad News: </li></ul><ul><li>Fewer than 25% of listed short sales close. </li></ul><ul><li>Most Real Estate Agents HATE doing short sales. </li></ul><ul><li>Most Buyers hate making offers on short sales. </li></ul><ul><li>Many, many sellers just give up and let the property go to foreclosure. </li></ul>
  2. 2. Your-Solutions Group LLC Has the Solution ... <ul><li>Good News : </li></ul><ul><li>The bank wants to approve the short sale. </li></ul><ul><li>If the short sale is not completed it goes to auction </li></ul><ul><li>Costly to bank with attorney fees, holding costs, insurance, property tax and commissions to realtors when sold as an REO </li></ul>
  3. 3. Top 5 Reasons... Reason #1 – No Offers <ul><li>Realtor takes the listing for a short sale </li></ul><ul><li>Some listing agents list short sales because they are really a Buyers Agent in disguise. </li></ul><ul><li>Most banks will not start the process until someone has made an offer. </li></ul><ul><li>The more time that goes by with no offer, the greater the chance of the short sale not being completed and going to foreclosure. </li></ul><ul><li>Destroys owners credit. </li></ul><ul><li>www.your-solutionsgroup.com </li></ul><ul><li>561-228-8889 </li></ul>
  4. 4. Reason #2 – Takes too long! <ul><li>Agent must be authorized on account to speak to bank </li></ul><ul><li>Bank gives a laundry list of items needed to do short sale (including an offer) </li></ul><ul><li>Agent must submit COMPLETE short sale package to bank, and will wait for file to get assigned to a loss litigator. </li></ul><ul><li>Assigned litigator orders an interior inspection of property (known as BPO) </li></ul><ul><li>BPO is completed, and the file then must be approved by the litigator, servicer and PMI company. </li></ul><ul><li>Process takes from 30 days to over a year </li></ul>
  5. 5. Reason #3 – Buyer Drops Out! <ul><li>Not all buyers can wait 4 months or longer to get their contract approved. </li></ul><ul><li>Many buyers are making offers on multiple properties with the intention of buying only l house. </li></ul><ul><li>If buyer drops out, and another offer is not submitted SOON, the loss litigator closes the file and the process has to start ALL OVER again, once another offer is received </li></ul>
  6. 6. Reason #4 – Lack of Follow-Up! <ul><li>REMEMBER…Real Estate agents are trained to sell Real Estate... NOT negotiate DEBT. </li></ul><ul><li>Real Estate agents don’t enjoy speaking to banks. </li></ul><ul><li>Most good agents focus on marketing and writing contracts, so they don’t follow up ENOUGH on their short sale files, and the sales seldom get approved. </li></ul><ul><li>Banks constantly lose files... loss litigators get fired...banks close, and the process must be done over again. </li></ul><ul><li>Agents throw in the towel from frustration. </li></ul>
  7. 7. Reason #5 – Uncooperative 2nd Mortgage... <ul><li>Most of the time the first mortgage will tell the </li></ul><ul><li>agent that the 2nd mortgage can only receive $1,000 </li></ul><ul><li>dollars. </li></ul><ul><li>The 2nd mortgage will tell the agent they want 25-50% of the balance. </li></ul><ul><li>Many times banks are so stubborn that the house will have to go to foreclosure auction, and the 2nd mortgage will get nothing, and the lst mortgage will have lost more money because it will have to be sold as an REO. </li></ul>
  8. 8. Your Short Sale Solution! <ul><li>Work with an Investor and a professional in short sales </li></ul><ul><li>Someone who will place an offer, or has someone that will place an offer on the property right away. </li></ul><ul><li>This person has the motivation to remain patient no matter how long it takes. </li></ul><ul><li>Would an Investor that intends to buy this house below market value, and quickly resell for a profit, have the motivation to stick around??? </li></ul>
  9. 9. How it Works… <ul><li>Homeowner and Investor sign a contract for a specified </li></ul><ul><li>period of time, giving the lender full disclosure. </li></ul><ul><li>Investors full time negotiator handles all the negotiating. </li></ul><ul><li>Investors Real Estate Agent lists the property for sale at time of contract. </li></ul><ul><li>When the investor receives a verbal or written approval, the Real Estate agent can let all end buyers who are interested in the property, that the short sales is approved (or almost). </li></ul><ul><li>Investor earns his money by whatever is the difference between what he buys it for and what he resells it for. </li></ul>
  10. 10. 2Nd Mortgages & Other Liens <ul><li>The larger the potential profit spread the investor has, the more wiggle room he has to negotiate a full settlement. </li></ul><ul><li>An ethical Investor will always make less or even NOTHING if it means that the homeowner will be released of all indebtedness. </li></ul>
  11. 11. No guarantees... <ul><li>If the 2nd mortgage (or another lien holder) wants more money than what the lst is willing to give them, an Investor making a large profit can allow the other lien holder more money from his profit spread to get the transaction done... (and this is fully disclosed on the HUD). </li></ul><ul><li>No guarantees. </li></ul><ul><li>www.your-solutionsgroup.com </li></ul><ul><li>561-228-8889 </li></ul>