I am on vacation right now, but have been increasingly aware of how many real estate agents don't do short sales, because of a varying list of reasons.  I have decided to post this open letter to offer a service that can be beneficial to many.

AN OPEN LETTER TO RE AGENTS

Dear Agent,

Do you have sellers who are upside down in their mortgage, because they are heading to foreclosure, or have reduced property values?

As a real estate agent, negotiating short sales with the bank often takes up way too much of your productive time.  Your time needs to be spent in listing the property, and finding a buyer. 

A short sale is not the solution for every seller and buyer.  The seller must be at the point that every avenue except the sheriff sale has been exhausted.  When working with your seller, I give them an article that goes over all the options they have.  In some cases they have tried other options already, and have not been successful.  At other times it is too late for those options to work.

Fannie Mae recently revised the guidelines for getting a mortgage after the different scenarios of foreclosure.

·         BANKRUPTCY:  Chapter 7 5 years before new loan, Chapter 13 4 years before new loan.

·         DEED IN LIEU:  4 years before new loan. Restrictions on type of property, and refinancing.

·         FORECLOSURE:  5 years before new loan. Restrictions on type of property, and refinancing.

·         SHORT SALE:  2 years before new loan.  No restrictions on type of property, or refinancing.

All of the above have credit points taken away, but will build up after an improved situation, and payments are made on time.

In the past banks were very restrictive in what loans they would approve for a short sale.  But in the last couple of months, the banks have been begging homeowners to find someone to negotiate a short sale for them.  This is because of the overload of bad loans, and properties  they hold,  are losing more on everyday.  The guidelines have changed.  I have seen non occupant owners, owners who are not behind on payments but are upside down, and owners that are not at the maximum for a loan but have not been able to sell, all get approved for a short sale.

Of course the seller cannot have a million dollars in liquidity and not use it to pay the loan.  There are not many of that type of seller.  Most are also struggling with all their finances at this time.

I will negotiate the short sale.  Neither you or the seller pay for the negotiation.  I include my fee of $1,500 in the settlement statement to the bank.  I will work with you and the seller directly to determine eligibility, and complete negotiations with the bank.  Your job as an agent is to get the buyer.

The typical discount is 30 to 50% off of the tax appraised value of 2007.  All approvals are dependent on the lender.  The lender has the final say.  A short sale that is not approved does not cost you anything.

INTERESTED?  Give me a call at 770-655-8353.  Or email at Kathleen@RealEstateInvestorGirl.com

P.S. If you are an investor or a homeowner needing a short sale negotiated, let me know, I can help you also.

Sincerely,

Kathleen Couch

Short Sale Loss Mitagation