Counter Short Sale Offer
Counter short sale offer – what is it
People normally do not enjoy making and bargaining or negotiating of counter offers. Especially when the counter offer is with a short sale bank, most people refrain from this because most of the terms and conditions which are stated are not which are normally found in other transactions.
The short sale counter offer makes perfect sense to the bank. Sometimes the bank feels it will be best for them to foreclose and when they do, the bank counters it with a short sale price. Or there are cases that the investor guidelines may have provisions for a counter offer. There are also cases that a mistake has been made by the BPO agent who has had to apprise the value.
When there is a counter offer for short sale, the banks ask for a HUD-1 which is the settlement statement estimate. The bank based on this decides if all the fees or some of the fees will be approved.
There are various ways in which a counter offer is given, it is either a written short sale counter offer. This is done in a worksheet format in a software called Equator or it could be done by an email to the listing agent. The other type are verbal short sale offers which are not preferred as there is no proof of the counter offer. Sometimes negotiators pay the fees themselves rather than haggle but others do not on grounds of principle. Most of the times this happens as it is the bank negotiator’s fault. Rather than have long drawn sessions with them, they feel that paying it is better.
Sample Template Preview
To: Institution Name
Attn: Loss Mitigation Rep. Name
Phone: (agency Phone)
Fax: (agency Fax)
RE: Short Sale Request
Property Address 123 Main St;
Dear Mr. / Ms
Pursuant to the counter offer received from your institution on__________________ (date of counter), we have found be reorganizing other acquisitions we could in fact bring the net funding to$_______________ (net offer)
There however several repair issues that will need to be addressed.
The cost to replace these items means this is our best and final offer. Please let me know how soon you could get this approved as our funding is available for 45 days on this property. We need to move quickly to secure this acquisition and remove this non performing asset from your institutions books.
We can close with our attorney by __________________(closing date). You will receive proceeds by close of business the next day. I have enclosed a new HUD reflecting the net for your approval.
Please let me know ASAP. I’ll really need to push hard to get this one done.
(Phone and Fax)