Short Sales

Short Sale Offer & Explanation

This is part of an abundance of evidence to support your short sale offer.  Be sure to Include the following:

  1. BPO or Appraisal explanation. I use the following:The BPO or Appraisal: The Market has been falling fast and many lenders are doing BPO’s on a monthly basis. To be accurate the BPO or appraisal must be less than 30 days old and take into consideration comparable sales LESS THAN 90 days old, listed properties and days the market. This BPO needs to give you a price that will facilitate a sale within 90 days or less and you must be the best/lowest price property on the market. Additionally you should ask for a quick-sale value which will be a significantly lower amount.
  2. Lender may be a loan servicer. Include in your letter that the lender may be servicing the loan and the real lender may not be aware of the actual market and it’s conditions. Request the loan servicing company share a copy of this letter with the lender of record.This is done because a loan servicer has a fiduciary obligation to protect the lender and negotiate in the lender’s best interest. You are giving them new information that the lender should have. They have a fiduciary obligation to pass on this information. In practice this will rarely happen. However, you can later use this as a leverage point with the loss mitigation supervisor.
  3. Property/Owner Status. Restate you have the Power of Attorney and want to work towards a solution to avoid the foreclosure and help save what is left of the borrowers credit.
  4. True Property Value. List a financial breakdown from the Expected Appraisal or BPO amount to the True Property Value. With creativity you can justify low prices.
  5. This Short Sale Offer Is Fair. Tell them why your offer is good and better then taking the property to REO and realizing less.
  6. Your offer is an option they can take now to limit their losses. With a declining market the property could be worth less if they have to foreclose.

Done right this letter should take up less than a page and a half. The value of the page is exponentially more than the quantity.