FOR REALTORS

IN TODAY'S MARKET, MANY REALTORS STILL LACK ONE SKILL

NOT all agents have one tool in their toolbox or know about it yet and even if they have heard about it, don’t have a clue on how to successfully put one together. If you are an agent that has come across a seller that is in distress (loss of job, death of spouse, divorce, major illness, etc…) and owes more on their home than what it is worth, but do not know exactly how to do a successful short-sale, consider referring it out to an agent that has had a tremendous amount of recent experience!

Just to make sure we're on the same page, a short sale is simply when a lender accepts less for a home than is currently owned.

Now a few years ago, doing short sales with banks were almost heard of. These days, things are quite different.

So if short sales are so powerful, why aren't more agents doing them?

Because there's a huge obstacle in the way, and based on my experience, the biggest obstacle to doing short sales is that each one is still somewhat unique so it almost has to become a specialty.
There are certain myths floating around out there that I want to dispel:

Short Sale Myth #1: Banks Won't Do Them...

A few years ago, when the market was hot, this was largely the case. Banks had no financial incentive to do short sales. There was simply no need.

In today’s market, things are different...

Banks are in business to make money. They can't make money when their customers default on their mortgages. When a bank is forced to foreclose on a property, that REO inventory prevents the bank from lending a certain amount of money as they need to have cash in reserve, and a bank can't make money if it can't lend money.

A foreclosure is bad business for a bank. That means there is a huge upside for doing short sales. These days, banks are motivated to minimize risk as much as possible. A properly structured short sale does that for them.

Short Sale Myth #2: Not All Banks Do Them...

This one is simple. ALL major lenders do short sales. In fact, they have entire departments dedicated to that very thing. It's called the loss mitigation department.

It's just that sometimes what they SAY they'll do and what they'll actually do are two different things. Experience in this area helps tremendously.

Short Sale Myth #3: Lenders Won't Pay Commissions...
The bank doesn't care primarily about commission. The bank cares about their bottom line, (NET to them.)

This might sound too good to be true, but I have been successful thus far in getting my usual and normal commission rate for doing short sales.

Short Sale Myth #4: Sellers Facing Pre-Foreclosure Will NOT Be Cooperative...
This is one of the biggest myths out there. Once I have been able to take a seller through the scenario and explain how foreclosure stays on their credit for 10 full years vs. allowing me to help them properly package and dispose of their property for the bank (which may get them out with a 14-24 month ding on their credit) and prevent the foreclosure from actually hitting their credit report, they are all for it!

So sellers are cooperative and this couldn't be further from the truth.

Here are the simple facts:

Doing a short sale keeps the client from losing their home to foreclosure. It keeps them from having the negative mark of a foreclosure on their credit. That's HUGE! Does it really make sense that the client would be "uncooperative" for helping them save their credit?
When you help solve big problems for people, they tend to be VERY cooperative.

Short Sale Myth #5: Short Sales are HARD...

Yes, short sales are a different animal. They do require a lot of work and require patience and persistence. They aren’t rocket science though.

To do short sales, I have had to learn the process. It's a new skill that most Realtors simply don't know.

BEWARE-
Of course, you can't take two steps without tripping over the newest "we'll close your short sale for you" company. They charge a fee for this "service." By the way, it's often non-refundable.

SO REFER IT OUT…
So if you have come across a lead that may qualify for a short sale, contact me. Put together a referral sheet and fax it to me at 248-283-2461 or call me at 248-283-0181.

Countrywide Foreclosures

This blog is dedicated to the prospective purchasers of Countrywide Home Loans foreclosed inventory.

As a Countrywide Home Loans preferred Realtor I know the requirements to submit an acceptable purchase offer. I am on the Countrywide preferred agent list and what this means to you is that often times, I am made aware of properties hitting the market, BEFORE many buyers even know about them and before they are listed on the open market and offered to the general public so contact me today!

Interested in a good deal? Interested in a home that is below value? Contact me today and lets get your acquisition strategy together. Getting a formal loan application into my contact at Countrywide is the first step in preparing to acquire a Countrywide owned home. A good home inspector is also necessary to uncover any flaws. This is because their homes are sold in "As-Is" condition and they are willing to mark them down in price to avoid repairs, so you will want to know exactly what you can expect from the home that you select and purchase. These homes are being sold with taxes that have been brought (or will be brought) current at closing, and have clear title.

If you have been pre-approved by a different lender already, that's fine too. You are under no obligation to use Countrywide for your new loan. There are however certain benefits to you (the buyer) such as an extremely competitive rate, a free appraisal (which could save you approx. $400.00) AND think of it this way: If Countrywide is to take a loss on a home because they currently hold a non performing loan, would you think they would be more likely or less likely to accept an offer from you that is less than market value (assuming they could make some of their loss up on the back end and over time by giving you a new loan that they would collect some interest on?)

I have been fortunate enough to deal with many banks and I can honestly say that I am extremely happy with the system that is in place with Countrywide so contact me right away and lets get started.

Are you interested in purchasing a foreclosed home? Contact me today. There is no cost for the representation. The advice you receive however is invaluable! I have put together hundreds of successful purchases for buyers over the years and I am an expert in the field of acquiring bank owned homes.