I just closed another short sale in Amesbury MA. This particular transaction was difficult, but it goes to show that patience and diligence pays off in a short sale. Over the years I have been over 95% effective closing these difficult, pre-foreclosure transactions where the national average is only about 39%.
Why was this sale so difficult?
Value. The lien holder kept wanting $30-40,000 dollars more then the home was worth. This is not necessarily a unique problem, it happens. You get an offer, you submit it to the bank, they want more money. The buyer walks, the cycle starts all over again and again.
This is where reporting the number of showings and feedback to the mortgage holder will start to take effect. Finally, they will eventually start to understand the true value of the property that is being sold short until you finally have an approval.
Properly setting the sellers expectations upfront helps in managing their emotions. The first consultation we talk about the fact that I may have to sell the home several times before we are successful. This way the seller is not disappointed when a deal falls apart because of an unrealistic value from the bank. A short sale is stressful for a home owner and letting them know the possible scenarios helps them through the process.
With this particular home I had to sell it four times before the bank understood what the true fair market value of this property was. The sad part or ironic part is our first two offers were in the $190,000 range and we eventually sold it for $155,000. Who lost here? The bank lost. Not only could they have pocketed an additional $40k they spend 100’s of dollars a month to while the property is being sold.
At the end of the day, yes, it took awhile, but the approval absolved the seller of the deficiency balance. An absolute success for my clients and worth the wait!
What makes a short sale successful?
- A Real Estate Agent with a history of success.
- Understanding the different scenarios of a short sale.
- Diligence. One thing I can tell you after 6 years of doing short sales is a no from the bank will eventually become a yes with consistently pushing thru with the bank.
What did this seller have to say?
“Kevin helped us with a very challenging and very emotional short sale. He was honest, professional and exceptionally diligent. We couldn’t have asked for a better agent in our corner during this whole process. He never gave up. His industry knowledge and short sale experience are second to NONE. Highly, HIGHLY recommend.”
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You do not need to let the bank take your home in foreclosure. If you would like to know all of your options to foreclosure, call Kevin at 978-360-0422.
