Fight for clients in short sale approval

Not every short sale is going to close, no matter how good you are. Often times issues like PMI are going to get in the way. But you should be taking the fight to the bank for your client to get the deal done and sellers when interviewing agents make sure you ask them what they are going to do when the bank says no.

But I don’t have PMI?!?!

So you purchased your East Valley home with a 80/20 loan so you would not have PMI. Now you need to sell your home and you find out the PMI company is asking for a cash contribution or a note for $10,000 to be signed. Why is that?

Well it turns out that investors who purchased your mortgage didn’t trust you so they purchased PMI for them. That is all well and good, and allowed, but that PMI company is not allowed to ask you for a contribution. Well they can, but they are not supposed to.

When they do this it is called 3rd party bad faith. The problem, even through you are right it is going to be more expensive to fight it than just pay it. I think this is going to end up leading to a class action law suite.

Tempe Short Sale: A lot tougher when agent seller don’t have great 2-way communications

Short sales are hard, short sales when the seller and the listing agent don’t have great open communications is even harder. A recent Tempe short sale experience showed that. The home owner did not communicate about some financial circumstances and the agent negotiating (me) was hit from no where by banks negotiator.

Phoenix real estate FAQ from March 5, 2010

Kristin LaVanway joins me as we answer your real estate questions straight from the trenches of the Phoenix real estate market….in only 30 seconds. Today we answer:

  • Should you require a deposit on a short sale?
  • Can the bank dictate terms in a short sale contract?
  • Should agents rebate commission?
  • Can I sell my house for a higher price if it is not a bank owned or short sale?

Great job behind the camera, Sasha Lopez!

This week we answer the questions:.

  • Should you require a deposit on a short sale?
  • Can the bank dictate terms in a short sale contract?
  • Should agents rebate commission?
  • Can I sell my house for a higher price if it is not a bank owned or short sale?

Next week we want to answer your questions, leave a comment below with questions you want addressed

Short sale agents need to stand up to banks when the overreach

Video 97:  I had a email from an agent in Colorado the other day. We had a conversation back and forth on Skype and I couldn’t believe what he was telling me. GMAC was requiring the buyer in a short sale purchase to put down x amount of money as earnest money. Then once it got past the inspection period if the buyer backed out and the they lost their earnest money, the earnest money was to be given to GMAC.

GMAC is not a party in this contract. Banks you have to realize that you you do not own the house the homeowner owns the house. The contract is between the homeowner and the buyer. You can either approve or not approve the final number on the HUD but you are not a party to this contract.

Agents needs to start standing up to banks and telling them that. They have no right legally to step in and dictate the terms of a contract. It is not their house. They can approve or not approve if they choose to the short sale but they are not a party to the short sale contract and banks you need to back off because and agents you need to start standing up to banks because they are in the wrong here. The agents are in the right to stand up to them and tell them they are not a party to the contract.

Do they want to accept this short sale or not accept this short sale? That’s it! And if they don’t accept the short sale most likely it’s going to foreclosure and they are going to make off worse than they would if they’d accepted the short sale. So agents you need to do the right thing start standing up for your clients and start standing up against these banks. Would love to hear your thoughts, you can leave a comment or e-mail me Dean Ouellette.

Tips for doing a short sale

short-sale-selling-tips I was talking with a couple from Chandler yesterday who were looking for a short sale agent for their home. They asked me for some things for them to keep in mind if they move forward on their short sale and of course that got me thinking of some basic short sale tips when selling your home.

Here are some good tips for sellers in short sale situations:

  • Contact your lender and let them know your situation then start getting your paperwork needed for a short sale in order.
  • Interview agents and ask them questions such as what they will need from you. If they don’t know (see above) then keep looking.
  • Get your house ready for sale, take a few hours and make it look as good as possible.
  • Price it right. If you do not have offers within a couple of weeks it is overpriced so lower it now.
  • Make sure once you have a buyer your agent stays in constant contact with them so they don’t go looking elsewhere.
  • Consider asking for earnest, it is not a common practice, but it makes sure a buyer is serious and greatly increases your chances of getting to a sale.

There are dozens of other short sale tips, but these are some of the key ones. A short sale is not short, just make sure when you are looking for a short sale agent, you hire someone who will put in the work needed to get the job done.