Most investors have been there– See a great deal on MLS, fire up the line to your real estate agent, set an appointment, get excited, start seeing the dollar signs add up, make the offer, then…… then….
Yes, that is part of the process. It is supposed to, and certainly can, add value to the deal. A buyer willing to hang out waiting on the deal to approve.
1. Offer Price is Critical
We all want a deal. Some banks are willing to make that deal, some aren’t so inclined in the current market. One key is to find an experienced professional that understands the back-end finance of a deal. Each lender or servicer has a strict guideline to hit. Present close to your best offer. Don’t expect a lot of counter offers, it’s not a part of their short sale negotiating model most of the time. One fact to remember is that the alternative is foreclosure. If your deal isn’t close enough to what they believe that they can get in a foreclosure, you offer may be dead in the water.
Your offer must be presented complete. If the servicer/lender wants a fully executed contract, proof of financing, estimated settlement statement, signed incorporation paperwork, and a choice of a multitude of other requirements, make sure it is presented all at once. This will help your offer not fall back to the bottom of the review stack. Many servicer’ employees handle 200-25o or more files. Make yours an easy one to review and make a decision on. The clock …read more