Short Sale Negotiation Problems
The biggest problem with a short sale negotiation is the less control of short sale negotiation agent as compared to the short sale listing agent. The short sale listing agent has a lot to do with the short sale process and success and has a major role to play. If the hired short sale listing agent in incompetent and has weak short sale negotiation skills, then only a miracle can make short sale successful. Short sale is a process to convince the lender to receive less than the amount owed. It requires professional negotiation skills and a lot of experience to convince someone bearing a loss. If short sale negotiation agent does not possess these skills, then he would never be able to make short sale happen. Be cautious when hiring a short sale negotiation agent.
It is to keep in mind that sellers are not required to be in default to go for a short sale, but the credit ramification will be exactly the same for a short sale and a foreclosure.
Major Problem with a Short Sale Negotiation:
There are a number of problems with the short sale that make short sale process fail. Many lenders don’t answer and return the phone calls. Bank will call the short sale listing agent when it is suitable for bank to call and when they have something to say or ask. A communication gap will ruin your all efforts.
If the short sale file is incomplete, then it is entirely possible that it will fall at the bottom of the pile.
Communication with Different Person.
Your communication will start with the loss mitigation department and you might talk to different person each time you call.
If your foreclosure is looming, as for the department to escalate your case to a negotiator immediately, but also expect that request to fall on deaf ears.
The short sale depends upon the hardship. If you are unable to sustain the hardship the success of short sale is not possible.
Send comparable sales that support the offering price because if the bank thinks it can get more money through foreclosure proceedings, it won’t entertain offers at list price.
Negotiating With the Short Sale Negotiator:
There are chances that you may have to deal with more than one short sale negotiators. So, don’t be astonished if you end up dealing with more than one negotiator. There are possibilities that the short sale negotiator may not be able to bear the resistance of the bank and you will have to reassign the case to some other short sale negotiator.
If short sale negotiator is not skilled and familiar with working behavior of bank it is possible he might not be able to approach the right person.
Don’t be astonished if you end up dealing with more than one negotiator. I don’t know if negotiators quit mid-stream because they can’t handle the pressure or if the bank reassigns them to another position because the bank is short-handed. Banks are cutting back on staff to save money and some employees hold more than one job at the bank, performing multiple tasks.
There are certain things that can be done in this situation. Some of them are given here:
- Try to get the, phone number and if possible email id of the concerned negotiator.
- Don’t be disappointed if that negotiator is not available when you call. You need to get the details for the next person.
- Find out the bank’s objectives. Ask pointed questions such as “Is this offer feasible?” “Does your bank ever do short sales?”
- Don’t take no for an answer. Ask for a supervisor. Be persistent.
- Be prepared to state your case in strong terms that the bank will understand.
Be Persistent in Short Sale Negotiations
The banks may be relentless so it is better to be persistent in your negotiation and equipped with all the required information. Be polite. Be polite, but be firm and don’t back down. In some cases bank will also want to negotiate with a real estate commission, plus there are cases where the bank decided at closing to renege on the promise to pay a commission.
- Keep in mind that bank cannot be forced to agree anything.
- Ask for each and every agreement in writing, but don’t be astonished if you don’t get anything.
- Make your notes and keep the record of every communication, with dates, talking persons and time.
- Ask the bank for a timeline and when it might be a good time to call back. Then call again a few days early.
- When you repeatedly receive voice mail, leave a message and call again just before lunch, right after lunch, just before the day ends and again in the morning before the day begins.