Some Little Known Tips To Getting Your Short Sale Offer Accepted Sooner

Has anyone tried submitting a SHORT SALE package before getting an OFFER?
In the world of short sales, a short sale submitted for consideration without an offer is similar to trying to create bread without yeast. Is this true or are there exceptions to this rule?
An agent has attempted to put through a short sale submission to the bank before getting an offer to buy. The property has been on the market for several months now and it looks like she is just chasing the market price downward. In the depressed housing market, she tried to get some leads generated by lowering the asking price several times since the time she got the listing, yet there haven’t been any bites.
The drawback is that once Jennifer does have an offer from a buyer and submits it to the lender, there is a long waiting period. The process of obtaining a short sale approval from the bank usually takes anywhere from 30 days to several months. During this time anything can change—the buyer can decide to cancel because the process is taking too long, interest rates could go up so the buyer backs out, the buyer may think that the seller is playing a game and holding out for a higher offer, the buyer can decide that the house isn’t what they are looking for after all.
What are the chances of moving this tedious journey along faster and get to the approval when it is needed? Is it possible to obtain a SHORT SALE approval earlier and not wait for an offer?
There is little debate that the banks stipulate that an offer is needed when turning in short sale packages. You will not be able to start the short sale process until the buyer signs a formal purchase contract. You can`t even deal with the "Loss Mitigation" department until you have an offer. The reason for this is that the banks will not negotiate against themselves by giving you upfront the reduced price they are willing to sell for. They want to know that they are negotiating with a buyer on the other end and that they are not wasting their time crunching through numbers and trying to negotiate something that doesn’t exist or may change when the offer comes through. Their goal is to minimize their losses and they need real numbers to work with.
What to do?
Just like there are more than one way to eat a banana, there’s more than one way of getting out of this ditch. One way is to take drastic action to generate some quick leads. Drop the price to "turn some heads" so you can get an offer in. Do a little research and find out how the price of other available homes and strategically price yours to stand out from the crowd. You have to keep dropping the price until you get interest. Once you have the offer, submit everything to the bank. If the offer looks too low, the bank will counter and you will know where they stand and then readjust the price with the buyer from there. You can try changing the price every 2-3 weeks. Your goal is to get it sold, not to get the most money. Regardless of your list price, the bank is going to rely on their appraisals and broker’s price opinion (BPO) for their ultimate value of the property. So how you price the property at this time doesn’t really matter as long as you generate interest enough to get an offer.
A little known strategy to get the short sale moving is to keep a list of real estate people in your area who buy properties at a discount who will submit offers that are low, but reasonable, just to get the bank talking. These investors usually are looking to get a good deal on a property so their offers will tend to be on the lower end, but they have the means to close out the purchase and would love to buy the property for the price they offered.
Now you have something to work with once you get the low offer from the investor. Your job is to justify the price in the offer to the bank. With the offer, you can also get the appraisal, or BPO, started on the home to get the process rolling. These investor offers can be considered what I would describe as "surrogate offers" to start the process until another offer arrives. This gives you leeway since you can close out with the investor if the bank will accept the price, or if a homebuyer comes along who will pay more, then you’ve made good progress in getting the home sold.
This strategy of the having an initial party stand in on the short sale to buy some time can also be applied in preforeclosure cases where time is running out and the trustee sale is imminent. At that stage, you want to do everything you can to try to postpone the sale which is whatever it takes to submit a short sale package.

Article Source: http://www.ezx-articles.com

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