going for short sale, asking 199, owe 287, 196 1st, 91 heloc 2nd, its within reason to get an appraisal for 175-200. on 1 offer the buyer wants credit from seller of 5k and other wants 7k, towards closing costs.
since i'm the owner but the lenders will be the 'real' sellers, should i even try to negotiate the buyer credit down? or just submit my package and let the lenders reject it? been reading up on this for hours and lots of discussions with my broker till he backed out, too much work for him when he's got plently of easy money reo's. but still not sure who ends up paying the seller's closing costs, me or the lenders? or is it another of the many negotiated aspects of the deal? my personal feeling is the buyers are either dreamers or being real aggressive on the initial offer, just trying to get as much as possible at least on the opening bid. but thats the question, is it common at all for the buyers to get this kind of bubble mentality credit when the sellers are already losing scary amounts?

bbxrider,

It would be best to submit the offer that nets the bank the most money. The lenders will pay the buyer's closing costs in many cases. If both offers are at $199K, then you should make sure the buyer's lender will allow $7K of a seller contribution. Many lenders will only allow up to 3% seller contribution, which would be about $6K maximum.

I have another client in the Stockton area that I will be referring them to a short sale agent in that area. If I am understanding your post correctly, you said you no longer have a Realtor listing the property. Call me right away! The lender will want you to have an agent through this process. If you don't have an agent negotiating with the lender on your behalf, you will have a very hard time getting this short sale approved. You will also need an agent that is well versed in short sales.

Call me and I will refer you to my short sale agent in your area. Using my referred agent benefits you because I will put weight on their shoulders to make sure they get the job done properly. I can be reached on my cell at (702) 203-6688 or on my email at LenM@AmericanaGrp.com.

Hope to hear from you!

bbxride,

Is your short sale pre-negotiated? Have you met the qualifications of a short sale and has all necessary documentation been provided to the bank?

well i talked to both my lenders and they said it was possible to proceed without a listing broker, both buyers are represented by agents. when i asked them what specifically they need and want from a selling agent, it was a comp report which i have and can get refreshed from the buyers agents and the agent negotiating the offer for the best deal on their behalf. at the end of the day, they will have the offer in their hands, and i will have my attorney look at it, and they will get their own bpo/appraisal to satisfy themselves of viable, realistic price. and then we all hope for a corroborating final appraisal. so far i have a good relationship with the buyers agents to negotiate with them. at this price, by not having the selling agent, that will save about 6k of commission which should be attractive to the lenders and one less thing they have to worry about negotiating.
as far as the package, i have it together except for the final offers. the lenders don't pre-approve anything, you have to be behind on payments and submit the complete package, thats it. they have all their recorded conversations that we have had so far.
so please enlighten me with SPECIFICS to what the selling agent provides. things than cannot be had with help of the buyers agents and an informed, coached, researched, and reasonably intelligent motivated seller. (i am listed in mls and have a decent website) so i'm ducking now bracing for angry responses, but i'm just asking to have the case made, so i can make the best decision.

Well when I worked short sales the asset managers appreciated that I was trying to put the deal together and they could call me with any questions.

For your information depending on the type of loan once the bpo or appraisal is ordered there IS a pre-approved price the lender will take in some instances NOT ALL.

For instance you list a 220k and you get an offer for 165k.Lender has a bpo done by an independant 3rd party and it comes back at 190k but your deal falls apart with the 165k because the buyers do not want to go any higher. Then at that point in the mls it can say short sale pre-approved at 190k. This is not how it's done with all loans.

You have to remember your loan is VERY different from everyone elses.Sometimes you are dealing with the bank,sometimes a servicer for the loan etc.

Depending on the loan pool and servicign agreement will dictate what the servicer can and cannot accept on behalf of there client.if they can't make th ecall then the servicer has to direclty send the package off to the bank,investor to make the decision which can take alot of time.

I am not sure about California so you might want to ask your attorney but in most states a HELOC WILL come after you for the difference with a defeciency judgement and a job or bank garnishment after the foreclosure.Even if they settle on a short sale alot of times they will reserve the right after waiving there lien in writing to come after you for the balance owed.

In that case you would wait for the defeciency and then file a 7 bk after the foreclosure to wipe it all out.

no legal advice

bbxrider,

First of all, we are trying to tell you that it benefits you and the lenders to have a listing broker involved. The lenders know that the commission is a typical cost of the business and they have no problem paying it. I am not sure why you are against having a listing broker. The listing broker can negotiate on your behalf with the lenders much better than you will be able to. In many cases, the lenders will ask you to sign a promissory note to pay back the balance of the loan. A listing broker can make sure that those terms are not within the approval. If you plan on using the buyer's agent to help you negotiate with the lenders, they will not be looking out for your best interest. They will try and get the best deal for their buyers because that is all they care about.

Second, you do not need to be behind on payments in many cases. A pre-approved short sale is when you have a buyer that fell out previously and now you have a bottom line net dollar amount that the bank will take as a payoff. It doesn't sound like you have been that far yet. The short sale package must be complete with all of the required documents. This is another reason why you should have a listing broker.

Third, the lenders will want your best offer to be executed and sent in. From what I am understanding in your post, you are planning on sending the lenders both offers unexecuted. The lenders don't want to see more than one offer. They will also require that you and the buyer come to agreement and sign the offer. So sending both would not be possible.

Do yourself a favor and get a listing broker to help you. Make sure to get one that is versed in short sales. I told you if you want one, I would be happy to refer you to one.

thanks everybody for the replies but special thanks to agent007, len mcguirk. I called len to discuss an agent he would recommend per the forum replies. len was gracious to answer some questions i had. he also ventured much valuable information that only a professional actively engaged in short sales would know. he is the real deal and i would recommend him to anybody in the las vegas area. i think my outcome in this process will be better for having been in contact with him.
with that said, i would like to say there is a lot to the short sale, both the art of the sale and the legal aspects/ramifications. it appears my situation with an original 2nd, then refinanced with a heloc that was also used to partially pay for home improvements, is not legally clear as to the right of the lender to pursue any deficiency. each state law is different, and i will be getting some legal counsel as to my situation before negotiations with the lender.
this forum helped me a lot to understand the process here.

bbxrider,

I am glad I could be of help to you. I hope you will use my recommended Realtor in your area. I am always open to share my knowledge and experience with people. Let us know how it works out during the process.