Ron Caudle

Tag: offers

  • Fourth Misconception of Short Sales – The Second Will Settle For Zero

    Most people are under the impression that on a second-position lien, they will be able to sign off on the short sale, even if you offer them $0.00. I am sorry to say that there are no second-position lien or junior liens that will accept $0.00. I’m sure even you would accept that deal. Everyone wants something for their time and to close out their position. Even if the lender knew that they had no chance in getting even a penny, if the home was taken to foreclosure by the first-position lien, they would still want something.

    Let’s think about it. A lender knows they will get nothing in foreclosure so why would they spend the time filling out paper work and the resources to agree to a short sale and still get nothing. If you are not going to offer them anything, their best chance would be to let the property go to auction, which they still may not see any money, but they still don’t have to put fourth any effort. Even if the property is worth nothing, the way they see it, their time is worth money.

    You need to satisfy all liens, and if they are already taking a loss, you need to make sure that whatever you are offering them is acceptable and worth the their time and effort. You can’t force a second-position lien that is going to lose $60,000 just to take $1,500. They might accept your offer and take the loss, but if they don’t, you can’t force them to. You have to make sure that you negotiate with the junior liens, or you stand to lose the short sale all together.

    The important thing to remember is that one dollar is better than nothing and two dollars is better than one. As you go through the liens, you must offer something that is reasonable in comparison to the chance of loss the lender is about to take.

  • Ninth Miconception of Short Sales

    Most people believe or have been told that you cannot submit a hardship without an offer and an estimated HUD. This is a matter of whom you may be dealing with. I bet that advice like this was given by a lower level paper pusher who is following a script typed up by someone higher than them to convince you not to try. There is no doubt that as you talk to him It sounds like he knows what he is talking about, but that is because he reads it of the screen in front of him.

    Let say that you listen to the advice that the man from the bank has read off the screen and hold off om submitting your initial hardship paperwork until you actually get an offer. Then you are going to drag out that escrow by an extra Four weeks just to get your file processed. Believe me when I tell you that four weeks is a conservative estimate with most banks. There have been deals with some lender and loan services that can easily take up to SIX TO EIGHT weeks to actually set up and order the BPO, broker price opinion. from the time they had received the file with an offer.

    To shorten this time frame in a considerable amount, it would be nice to knoe that you can send a file in without having an offer. The trick to it though is that you have to follow-up REPEATEDLY and be working on getting an offer quickly. It is you that is responsible for keeping up on the status of your file and to make sure that the bank is moving forward at a reasonable pass.

    When the day does come that you get the phone call from the lender/bank asking “Do you have our offer ready yet?” You should (hopefully) have one and be ready to say,”Oh yes sir, I have you offer right here along with the HUD, do you want me to fax that over or would you rather I drop it off?” (That’s if dropping off is available and in range)

    These are just a small few of the strategies that I have developed and learn over the years, and I will be more the happy to share more with you after you contact me.