Heidi M Tourangeau
Phone:
480-862-2597
Toll Free:
(800) 994-2488

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Realtor Short Sale Page
 
This page was created for Buyer’s Agents/Realtors that have questions in regards to our experience in negotiating Short Sales as well as our process for negotiating Short Sales.
 
Experience
The main members of our team have been negotiating Short Sales for several years. We got our start negotiating Short Sales as investors and in recent years have begun negotiating files as Realtors on behalf of our clients. All of the Short Sale negotiation is done “in-house.” We do not send any of our files to a 3rd party negotiation company.
 
Results
Nearly 90-95% of our business is currently Short Sales. More than 80% of our Short Sale listings successfully close. While we will never guarantee that we can close every Short Sale (and we think you should be really leery of anyone that tells you they can), we strongly believe that if it is a deal that can be done, we will get it done!
  
Process
Prior to taking a Seller’s Short Sale Listing, we collect the “Seller’s Financial Package” from the client which entails all of the information their bank will ask for. Once the listing is in MLS, our process is as follows…
 
Week One: Put the listing in MLS, send complete “Seller’s Financial Package” to bank.
 
Week Two: Verify that bank has received all paperwork and work on getting a coordinator assigned to the file.
 
Week Three: Get the coordinator at the bank to review the file and/or complete the set-up process and work to get the Broker’s Price Opinion (BPO) ordered.
 
Every effort is made to get the BPO ordered before an offer is even received. Most 3rd party Short Sale negotiation companies will not begin working on a file until an offer is received. Our goal is to get as much done with the bank as possible before an offer is received, in order to cut down on the length of the Short Sale process.
 
***Please do not call and ask us “where we are at” with the Short Sale Process before showing our listing. If after seeing a listing you and your client are interested in writing an offer, we are more than happy to give you the specifics on the file. 
 
Frequently Asked Questions from Realtors
 
How much is owed against the house?
While this question sounds good and is normally asked very innocently, what is owed against a home is irrelevant. The bank is only concerned with two main things:
 
(1) Market Value of the Property
(2) Amount of the Offer
 
Banks do not make their decisions on how much they are losing in a particular Short Sale transaction. When a bank takes a home back through foreclosure, they do not turn around and try to sell that property for the amount they were owed, they simply sell it for what its current market value is or a small discount below current market value. The same is true with Short Sales.
 
How do you know the bank will accept our offer?
We really don’t know with 100% certainty that the bank will accept your offer. What we do know, is that banks are typically willing to accept an offer that is within 85-90% of current market value. We price all of our listings very appropriately so if your offer is at or very near market value, we feel confident that if it is possible to get the Short Sale approved, we’ll get it done.
 
How long does the Short Sale process take?
The actual negotiation/approval process can take as little as 2 weeks or as much as 3 months.  On average most Short Sales take between 30-90 days from the date the offer is presented to the lender to the date of the Short Sale approval. In most cases, 60-90 phone calls and faxes back and forth between the lender and our team are required. Once a Short Sale approval has been received from the bank, the Buyer should be prepared to close escrow within 21 days.
 
Is there a Foreclosure sale date scheduled?
Foreclosure sale date information is public information and can be found by doing a small amount of research online. We get several foreclosure sale dates extended every month so please don’t ever let a sale date scare you away from one of our listings. We have gotten sale dates extended less than 30 minutes before a property was supposed to go to sale.
 
Is the property still available?/Are there multiple offers in to the bank?
If the property is listed as Active in the MLS, it is Active and still available. Those properties that are already signed by the Seller and submitted to the bank will either be listed as Pending or AWC in the MLS.
 
We do not send multiple offers signed by the Seller in to the bank. Contrary to how some agents handle Short Sales, it is our firm belief that sending multiple offers in to the bank only confuses the bank and slows the process down. The banks have a hard enough time reviewing one offer – sending them multiple offers is not the way to successfully close a Short Sales!
 
We of course have a responsibility as Real Estate Agents and Realtors to present all offers to our seller. If you submit an offer it will always be presented to our Seller for their review. Please understand though, that we will coach them towards not sending multiple offers to the bank because based on our experience this is not the best way to get a Short Sale done. 

Why do you “only” pay 2.5% commission to Buyers Brokers?
Let us begin by saying that we ALWAYS, ALWAYS, ALWAYS pay the commission that we advertise in the MLS. We have never, and will never, pay less than what is advertised.
 
Contrary to “popular belief” (also known as un-educated belief), all short sale lenders do not pay 6% commission. While Fannie Mae has acknowledged they will pay 6% commission, there are still many lenders today that will not pay more than 5% (and others that will tell you they only pay 4% - 4.5% commission). We only pay 2.5% because we’re simply not willing to do all the work involved in getting a short sale approved, and then only earn 2% or less commission.
 
Please also understand, there are many times where the 1st lender may agree to pay a 6% commission, but to get the deal approved with the 2nd lender, we have to use some of the commission to meet their required net. 

When will my offer be presented to the Seller?
We present all offers to our Sellers Monday through Friday between the hours of 9 AM – 4 PM. Please be advised that if you submit an offer over the weekend or outside of these weekday hours it will not be presented until the following business morning.
 
 
We will contact you within 2-4 business hours upon receipt of your offer to confirm that it has been received. Please allow us a few hours to call you before calling us to ask if we received your offer.

Is there anything else I should know before submitting an offer?
Yes. Please submit/include the following forms/information with your offer…
 
(1) Please include the AAR Short Sale Addendum -
(2) Please include the AAR As Is Addendum
(3) Please use Liza Romero of Magnus Title as the Title/Escrow Company. Phone (480) 385-4305. Fax (480) 682-3306.