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3 Tips for an Effective Short Sale Value Dispute
If you or anyone you know is participating in a short sale transaction, you may find that after months and months of waiting, the short sale lender (the mortgage lender) comes up with a minimum value they will accept in a short sale that is completely out of line with the purchase offer. If this describes your situation, then this article is for you.
We, at Short Sale Expeditor®, have successfully negotiated 1000+ short sales, and we’ve been here before working with short sale lenders to get short sales approved—often after a value dispute.
Want more information? Feel free to contact our office.
We, at Short Sale Expeditor®, have successfully negotiated 1000+ short sales, and we’ve been here before working with short sale lenders to get short sales approved—often after a value dispute.
3 Tips for an Effective Short Sale Value Dispute
- Find good comparables. Use your MLS to identify good comparables and prepare a professional report for the short sale lender. Make sure that your report focuses on recent closings of like kind properties within close proximity. Listing agents and sellers can assign any price to an active listing, but the data to support your value dispute lies in the recent closings. Do not go back more than 6 months in your comparable report.
- Obtain three bids for everything. In the event that your short sale has more deferred maintenance than the other homes on the market, you’ll need to provide this. The way to do so is with photos and bids from licensed contractors. Obtain multiple bids that include photos to support repair costs and upgrades. Also, be sure that this information was not already taken into account when the Broker Price Opinion (BPO) was conducted on the property.
- Speak with your mortgage lender contact. When working on a short sale, it is important to speak with the representative assigned to your file at the lender. Find out if they have a specific form that they require for value dispute, or ask them what you need to provide in order to get your file resubmitted for approval. If you take a few minutes to have this conversation, you may be pleasantly surprised by the results!
Want more information? Feel free to contact our office.
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