see how I was able to satisfy them. I’ll start with the Seller.
Seller and 4 Unsecured Creditors
I explained to the seller that he did not have to sell at full price in order toaccomplish his goals. I referred him to my article on short sales at a real estatecommunity web site I maintain:http://activerain.com/blogsview/348273/Big-Bucks-from-Short.I told him I used specialized documents and that though I couldmake no guarantees, I would attempt to achieve the following for him: he wouldnot have to bring money to the closing, he would be protected from a deficiency judgment, his unsecured creditors would be paid most of the money he owed them,but probably not in full, his credit would be protected by arranging for special creditreporting by the lien holder, the property would not be foreclosed on, and I would
have the problematic “manager” replaced. I
advised him to consult an accountanton the possible tax implications of the sale. He agreed to list the property with me,and I obtained his permission to disclose some confidential details to a potentialbuyer.
2
nd
Lien Holder
I then contacted the 2
nd
lien holder to make sure he would “be reasonable”. After I
explained that if the property were foreclosed on he would get nothing at the sale,and that although he had a right to pursue the seller for the value of his note, thechances of recovery were remote, especially because seller was in a remote state,expensive to sue and probably had no assets anyway. I told him the amount Ithought I could get for him and we eventually agreed on an amount.
Buyer
I contacted a real estate investor I had worked with before and who was not afraid
of challenging properties. He agreed to purchase “if the price were right”.
Iexplained the way in which I perform short sales which is a little different fromstandard. Buyer submitted a very low offer which Seller did not even want torespond to. I knew seller and buyer personally and thought they would both bemore reasonable if they spoke directly to each other. I arranged a 3 way call and aprice was agreed on and the offer signed and accepted with the many contingenciesmentioned above. They agreed I could act in a non-traditional manner and disclosevirtually all facts to the opposite party, even though I was dual agent.
First Lien holder
I established contact with the first lien holder and sent him the forms I had hadseller sign, giving us the right to communicate with each other. An importantelement in the success of this sale was going to be that the lien-holder understoodvery clearly the plight he was in. Often unrealistically high BPOs are performed andI am then forced to counter them with written reports and photos. Another
problem I anticipated was that the lien holder’s negotiator in the short sale
department would be non-responsive and that I would have to go over his head toVP or President level (I have a comprehensive email and phone list of keypersonnel, including VPs and Presidents, of all the major mortgage companies andmany of the smaller ones, throughout the US).
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Apartment, Multi-family and Commercial Short Sale - Nation Association of Realtors