A story with a happy ending.
Closing short sales is a process to be successful you must take the right steps in the right order. One of the most important steps is working the BPO agent. I find that sending them the comps is always the right move. Now, I'm not saying that BPO agents are not going to do their job. After all they do get $50 bucks for doing a thorough job but if I send them the comps that I want them to use there is a chance (90%) that they will just use them AND thank me for sending them.
One of my favorite parts of doing short sales is the phone call to the BPO agent. I love doing my Stoned Real Estate Agent routine. "Oh well...I don't know what it's worth man. I had the place up on the market for like 3 month and nobody would even look at it till I dropped the price to 145. The place is like a totally ghetto. I was like almost afraid to go in... Watch out for the fleas... I can't take that smell. etc, etc, etc.." and always "how much do you think it's worth?"
Then it's the call to the seller reminding them of all of the things I told them about making the house show well AND TO DO THE OPPOSITE! Don't do the dishes. Leave that dirty underwear on the doorknob. Don't clean up the dog piss on the floor. etc, etc, etc... Worst of all this seller was a clean freak. He needed me to stay at the house for a couple of days.
I need to shape the BPO because I know when I am talking to the negotiator 3 or 4 weeks later they will be using that BPO as the basis for their financials.
So, how did my short sale turn in to deed in lieu. The bank gave the owners phone number to the BPO agent and the owner gave him the lockbox combo. I did take the listing off eshowings. I did tell the owner not to let anyone show the house and to make them call me. I did send the BPO contact info (call me) to the bank but...
By the time I found out the BPO was in the deal had already been turned over to the negotiator and the negotitor had already sent it to fannie mae, the investor. GAME OVER.
Value $150K. Offer $138K. Counter $185K NOT NEGOTIABLE. Asking $145K.
So I of course I sent comps and tried to negotiate. The email came back $185K NOT NEGOTIABLE.
So I said to the negotiator, "Even if I could get $185K it won't appraise anyway. Can we order an appraisal?" "$185K NOT NEGOTIABLE." Then I got the short sale declined letter.
The 10th time I called the negotiator after the decline. She said we could do deed in lieu.
The sheriff's sale is in January. We may be able to get the sale postponed and start over on the short sale and then maybe there will be new BPO but it would be a long shot and the deed in lieu option will probably be off the table.
While I was waiting for the seller to decide, I got an email from the negotiator saying that they would offer me an incentive if the seller would do the deed in lieu.
"OK, How much?" I replied.
"$3,000," they said.
So the seller decided to do the deed in lieu and I got $3,000 (the happy ending).
I do feel bad for the buyer but what can I do.
