When the Bank Won't Accept Your Short Sale Information

Hi Friends,

We are in San Diego this weekend. Bill is teaching right now, while I write to you.

I had another great question posted on my blog. People are asking questions about Vegas and comps and short sales.

Folks, Vegas in one of the hardest hit areas. There was soooo much pre-construction and there are so many people upside down right now.

If you are doing short sales and having a hard time getting banks to accept REO sales as comps, ask the bank what comps they would like to see you use? Banks look for comparable sales within the past six months. If that is all there is, they must accept those comps.

If you have my program or have been to a short sale boot camp....you know that we use a "three step" short sale process. My thought is to treat short sales as if you were going to court and presenting a case. The more information you have, the better your chances to win.

We begin with our first offer focusing on the distress of the homeowners and their property. We provide low comps, hardship letters, a cover letter from us, pictures, and whatever else we think will help.

I have never had a problem with a bank using REO comps. I think that if you send the second and third offers, the banks will be more likely to look at your offer as a WHOLE package.

In the second offer, we send the crime reports, a list of the registered sex offenders, pictures of boarded up houses and more.

In our third offer, we show the financial loss to the bank if it does not accept our offer. The third offer is VERY important...it shows the bank exactly what it will lose if our offer is not taken.

I truly believe that if enough effort is put into a short sale, you will get a "yes" 80% of the time.

I find that when a bank is not wanting to accept some portion of my package (like comps)...I push to find out what it will accept. Almost ALL banks do short sales, so there must be some item that will be acceptable. Being pushy is sometimes the key.

Remember, if a bank says no right now to your deal...call back at the beginning of the next quarter. A bank may say no in March, then receive reports of what a bad first quarter it had and then accept your short sale when you call back in April.

Likewise, you may get a no in the beginning of April and call back at the end of the same quarter and get a yes.

Banks are all about numbers and run in quarters. A "no" this quarter could be a "yes" next quarter.

As long as the property hasn't gone to the sheriffs sale, the deal is not over. We call up until the last day to try and talk a bank rep into a yes. Often, homeowners will file bankruptcy just before the sheriffs sale in order to buy more time. Once bankruptcy is filed ... we get back to work.

Are short sales worth all the work? You bet! You can expect to make anywhere from 10% to 20% of the current retail value on each property. That can mean a huge check for you on every deal.

Since our goal is to by properties at 50% of the value, we are willing to put in the extra effort and extra calls to get the deal done.

Remember..the homeowner must always come first. This is their one and only chance to start over - you have a deal around every corner.

We are headed to the airport soon....Hope you have a wonderful weekend. Hey... go to church tomorrow and thank God that you live in such a great country and that you have the ability to make a difference in the lives of people every day...just like Jesus does!

Have a Blessed Day,

Dwan
www.theieu.com