Very few initial short sale offers are accepted, and those require extensive negotiating. The final cost accepted is frequently determined by your ability to negotiate. Review the following tips to ensure you put your best foot forward when making an offer:
1. Discuss All Options: Before getting too involved in the process, take a step back and speak with the homeowner. Lay out all of the options and processes involved during your initial meeting. There are a few situations where there may be better options than a short sale. If they can get approval, a loan modification may be a better option in the right circumstances. You should also find out how much money is owed on the property. Some homeowners need to be aware of the existence of a second lien or are unaware of their current balance. Before making an offer, ensure everyone is on the same page and that a short sale is the best option for everyone involved.
2. Examine Comparable: Once the homeowner agrees, determine your offer price. While the lender wants to avoid foreclosure, they also want to recoup lost profits. Compare your subject property with the offered prize. If your offer is too low, you will be flatly rejected without the opportunity to counter. If your offer is too high, you may be passing up money.
3. Make an Initial Offer: The offer is the starting point for the negotiation process. How you submit your offer may result in its rejection before you even begin. It is important to note that short sales require the lender to accept your offer and the homeowner's inability to pay. The lender is taking a loss on the property and wants to ensure that the homeowner is not simply dumping it. They will investigate the homeowner's finances and the cause of the late payments. Ensure that the entire package requested by the lender is signed and dated by the homeowner during your initial offer. Any bank statements or tax returns can be include.
4. Review the contract: You should also review the contract to ensure that all parties have signed it and that the language is simple enough for the lender to understand. Include a repair cost estimate and any flaws you discover with the property. Finally, double-check the contact information you include in your email.
5. Find a Negotiator: The final decision is made by a specific segment of the bank. The loss mitigation department is usually in charge of your approval. Find out who your assigned negotiator is within this department. Follow up a few days after submitting your offer to find out who this person is. They will be your primary point of contact for the duration of the transaction. It is critical to have a clear way of communicating with them. If possible, obtain their direct contact information. You can ask them direct questions and pick their brain about sales prices. This is an important step in getting your offer accepted.
Speak With an Expert Short Sale Attorney
Our attorneys have helped homeowners throughout Illinois and the Chicagoland area protects their credit by completing a short sale. If you want the best chance of a successful outcome, please do not hesitate to contact an experienced Real Estate Attorney in Chicago, IL, for a free consultation.
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