Mortgage-Mod-Monster

Why a Professional Short Sale Negotiator is better than a Listing Realtor

Overall, this is a really good article on accomplishing a successful short sale on your property. There is one glaring mistake, but considering the source, easily understandable. Articles that feature  ‘five easy answers’ are always attractive. Here are comments and corrections.

1. Short sale negotiations typically take a long time because the negotiator is only doing one or two at a time. Typically, they are unable to gain access to the true decision-maker at the lender. An investor and negotiator that is negotiating hundreds of property short sales has unequalled direct access to those decision-makers.

Your listing agent won’t tell you this, but they are advised to use an outside negotiator to get a beneficial offer from the lender. The agent makes most of their fee by negotiating that short sale. Initially they believe that it’s worth their time.

Any distressed mortgage owner would do better to contact me and let us negotiate a much quicker short sale. We tehn utilize the talents of the agent to sell the property. It saves the distressed homeowner both time and money.

2. Banks do negotiate aggressively. Basically, the process is an auction. Us against them, both of us trying to negotiate a win-win-win situation. Since we are the buyer, we don’t disappear.We’re in it for the duration.

3. We can insert an addendum that we will negotiate away the deficiency. Ultimately however, the decision is in the hands of the lender. Yes, the deficiency is tax-free as income this year.

4. Yes, it will be two years before you can buy again. But that’s a huge improvement over the 7-10 years it will take to overcome a foreclosure. Quite brutally, if you can’t afford the payments, your credit score is the least of your concerns.

5. I disagree with the blanket statement that it is better to try to ‘ride out the storm.’ Other emotional and financial considerations enter the mix before a final decision should be made.

My financial software is bonded by the US Dept of Justice. It goes a long way in clarifying any property decision. At both ends of the spectrum, if your property has lost 5% of it’s original value, you probably should pursue mortgage modification or short sale. If you live in south Florida and your property has lost 55% of it’s value, you have no choice – give the keys back to the bank. It’s called a ‘strategic default.’ The strategy was invented by the very banks that avoid your mortgage modification or short sale negotiations. Today I read that 20% loss of property value MIGHT be the tipping point.

The new guidelines referred to in this article are collectively called the Home Affordable Forclosure Assistance Act. The jury is still out on the overall benefits or consequences of this legislation. Stay tuned.

When you want to the front of the line for either a short sale or mortgage modification, call me.

Read it here