Minnesota Short Sale Homes
Ron did a longer more detailed article at this link for minnesota short sale homes
This article was written by Mario, a mn short sale process specialist….
I always submit the package to both 1st & 2nd simotaniously to get the
ball rolling on both because they are slow. I sometimes will have the
Estimated Hud1 going to the 1st say that they are going to pay the 2nd
2000-2500 knowing that the chances of them doing so is small and i send
the 2nd one saying they are getting 500 or 1000. Y would i do this?
Because it gives me room to negotiate and let both sides feel like they
got a deal. The 1st will normally says they will not do more then 1000 to
the 2nd and the second will say they will not accept less then
1000-2000 to release their lien. If i can get the 1st to pay even 1500 it will
make the 2nd jump a lot faster because they normally are stuck with
1000 and the first feels like they negotiated down on the amount they
were paying. one thing to always remember is that the 2nd is pretty much
forced to play along if the 1st is taking a discounted payoff. Once the
1st has shown they are taking a hit, you are simply convincing the 2nd
that they need to take the 1k-2k payoff. The trick with short sales is
all in the BPO. If you can get the BPO value down low enough you are
golden. Even if the 2nd puts up a fight because their bpo came in higher,
you can try to convince them to let you order a 2nd opinion on the
property (this works best if you are adiment about the bpo agent being
crazy and way off on his numbers. believe it or not if you keep pushing
they will usually break and put the bpo into review or allow the 2nd
opinion) and in some cases you can even get the 1st to send over a copy of
their BPO or appraisal even though they are not supposed to. when the
2nd sees what the 1st is going by… usually they break. 1 trick that
normally gets the 1st to give you their bpo value (crucial when
negotiating with the 1st) is to act like you already know what it is. Call and
talk to the account rep a few days after they recieve it (they dont
remember what they already did and didnt tell you because you are 1 in 300
files) and say this word for word in normal conversation about the bpo
coming back “yeah well, now that the bpo came back at …… (has to be
lower then you think it really came in at/make sure it is lower then
what you are shooting for) what else do you need from me to get this
approved” like they already told you and I will bet you money that they
will come back and say “no…. it didnt” then you say “that’s weird,
thats not what i was told, are you sure?” say it with conviction and they
will say.. “let me see something” they will say “looks like it came back
at ….” and bam you know what you are working with. they can usually
play within 10-15% of that value depending on the lender. at least you
know you are in the ball park. Bring that value back to the 2nd and rub
it in their face that they have no chance getting more then what the
1st agreed to because the 1st sees the house valued much lower then what
they are owed. The more confident you talk to these people
(respectfully of course) the more they will take you seriously. When i first
started i thought that policies were stiff and the mitigator couldnt get
things pushed through but you would be suprised what a little pressure and
posture will do to a tough deal. This business takes a little hustle
but when you get it down, life gets a little easier and deals are more
predictable (faster too). Hope this mini book helps you.
