Is you mortgage with one of the large banks like Bank of America, Chase or Wells Fargo? You may be surprised to hear that these lenders don’t usually make the decision on whether or not to approve your Orlando short sale.
It’s a common misconception really but the truth is that these lenders are just servicing these loans for the Investor.
So, who is the investor you ask? The investor in most of these scenarios is usually a corporation, a hedge fund or a firm on Wall Street. It could also be a what’s called MBS or “Mortgage Backed Securities”.
The “Investor” can also be a government sponsored entity like Freddie Mac or Fannie Mae. These are referred to as GSE’s or “Government Sponsored Entities”. What most people don’t know is that if your lender or servicer refuses your short sale, your Orlando realtor can contact the investor directly. Most real estate agents are unaware of this and will typically go by whatever the servicing company decides.
Usually when we contact the investor after the short sale has been denied by the bank or servicing company, we get them to reassess the short sale. It’s a matter of convincing them to accept the short sale based on the hardship of the homeowner and the true market value of the home taking into account all of the repairs that need to happen in order to get the home market ready.
What we’ve noticed from our own experience is that the “Investor” or “third party” will do a much better job of assessing the short sale offer that was put forth… especially, because it’s their money. After they review the file and if it makes sense to them. The short sale offer is then approved and the investor will ensure that the servicing company is aware of what took place.
This has proven to be helpful in cases where the lender has asked for a seller contribution and they threaten to close the file unless the homeowner agrees to sign a promissory note for the deficiency. Sometimes servicing companies will reject a short sale without good reason. Other times the negotiator will have demands that just plain irrational such as wanting more than fair market value or not considering the repairs that need to happen.
Why Orlando Short Sale Negotiators Kill Fair Deals?
Being an Orlando short sale realtor for so many years I still get frustrated when the negotiator stands in the way of a perfectly fair transaction. Why in the world would a negotiator do this? I’ve come up with several theories like maybe they get a bonus for obtaining a higher offer and closing it…or maybe they’re just bitter.
I realize that this might be a surprise to many homeowners but the truth is that this happens more times than it should. If you’re having trouble getting your short sale approved, then find out who the investor is and inform them of what their servicing company is doing to you.
Our company has been able to get several Orlando short sales approved just by bypassing the servicing company and contacting the investor directly whenever the servicer doesn’t cooperate. If you or someone you know needs help with an Orlando short sale contact us at 407-902-7750 or just visit https://orlandorealtyconsultants.com/short-sales/