Are you having trouble getting your short sales closed? Do you think that they take forever to process? Do your buyers walk when you have finally obtained your approval letter?
This is article number eight in a series of 10 articles about the Top Ten Tips for Getting Your Short Sales Closed.
And here is Tip #8: Agree on Counter Offer Terms Before Accepting Them
Perhaps you are working a short sale through Equator or perhaps you have faxed your short sale to a lender that does not use the electronic processing system. Either way, you will likely wait a little bit longer than you want to in order to receive your short sale counter offer.
Often times, a short sale lender may counter your price. Other times, the lender may agree to the price but ask for other costs to be reduced or eliminated (such as HOA fees, pest control, or a water assessment).
When you receive your short sale counter offer from the lender (whether it is via email, in Equator, or over the telephone), make sure to carefully note the terms and don’t accept the counter offer immediately. If the counter offer will impact the buyer, it is vital to review the terms with the buyer’s agent and assure that the buyer agrees to these terms. Then make sure to generate an addendum to the purchase contract (signed by all parties) that clarifies the adjusted terms and conditions.
Don’t jump for joy quite yet! Just because your short sale counter offer came through, this does not mean that the short sale is approved. The bank employee still needs to submit (in most cases) the short sale to the investor for final approval. While 9 out of 10 files probably make it though that step okay, you do not want to invite everyone to a party that may not happen.
So, if you want to assure that your short sale moves along swimmingly, always discuss counter offer terms with all parties before accepting them.