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kensmith · Moderator Joined: 07 Jun 2006 Posts: 107

Does anyone work the pre-forclosure market? I have a client who does this, but they aren't really willing to share how they do it. Would like any feedback about working this market and how you get banks to give short sales.
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teamsage · Posted: Thu Jun 22, 2006 8:48 am Post subject: Short Sales

Ken,

Where are you located? I may be able to give you a hand with this.
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kensmith · Moderator Joined: 07 Jun 2006 Posts: 107

I'm in the Chicago area.

teamsage · Posted: Thu Jun 22, 2006 2:49 pm Post subject: Short Sales

Ken,

The reason I asked is each area has a different policy. Here in California I solicit home owners that need to get out to stop the Foreclosure process. When dealing with the bank I have found the best apporach is to call the banks lending and property department. In most cases the bank will not want to pay full commission. I offer a dual commission to banks. Mean this. If I bring the buyer I will discount my commission by up to 1/2 my commission. But if I'm only representing the seller, then I charge 1% less than my mormal 6% commission.

Hope this helps. Please let me know if I can help you further.

magma · Junior Member Joined: 07 Jul 2008 Posts: 15

samsin · Junior Member Joined: 27 Sep 2009 Posts: 2

This happens more than I care to admit. That's why you never spend a dime until you have BOTH approval letters in your hands.

There is nothing you can do here as legal recourse. However, a lot of agents will make the mistake of going back to the first lender and ask for more money for the 2nd. Once they do that, the first will most likely refuse and close the file.

Here's what must happen:
1. Seller's agent must try to negotiate the original amount with the 2nd lender.
2. Have seller pay the difference or offer a promissory note to the 2nd.
3. You, the agents and the seller might want to make up the difference. Most agents are unaware how to do this without alarming the first lender. If your agent is unaware on how to do this, have them get with title to learn how.