Short Sale Dealings

Currently, I have a buyer who may write an offer on a Destin short sale. The listing agent has created an MLS “bid” situation by setting the price of his listing artificially low at 110,000, when the realistic value is 170,000. The listing agent has 3 offers the first day the property hit the MLS, and will submit the highest to the bank for approval. He says all the offers are, of course, higher than asking price.  The agent is professing superior short sale knowledge, and has emailed erroneous information to me, stating he will get to “decision maker” and that he will offer the second mortgage holder $3000.  He also said the deal would be very hard because there are two lienholders. In the course of my buyer deciding to write an offer, I forwarded some of the agent’s emails to him, with these comments:

Some of what the agent is stating is erroneous information.  First of all, “the agent” doesn’t decide what the second mortgage holder will get as a “buy out”.  There is a standard amount offered, for example, ASC may always offer $1000 to the second mortgage holder.  Some banks offer $1500.  This agent honestly doesn’t know what he is talking about in that respect.  In addition, the agent cannot find the “decision maker”.  He only can speak to the negotiator- who works at the mortgage holder’s company.  The negotiator deals with guidelines set forth by the end investor on the mortgage.  For example, Wells Fargo may be servicing a mortgage for Bank of New York or Merrill Lynch, whoever has bought the mortgage-backed security.  The end-investor is who decides what they’ll take for an offer price and what they’ll ask for from the property owner, be it a cash contribution or a promissory note or nothing.  We don’t get involved directly with the end investor.   Although, we do certainly influence the negotiator’s presentation. Finally, having two lenders is not tough, as he states.  It is common with short sales, and is just a lot more paperwork.”

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