Short Sale Power Hour

The leaders of Group 46:10 are presently in Italy. So, thanks to a little good planning and precise preparation, this week’s theme of counter offers from banks did not need to wait a moment longer to be presented. There are predominantly 2 types of counter offers that are being discussed. First, the collection counter offer, which is when a bank employee wants to counter for additional money simply because they want extra money or because they don’t want to pay the commission. The next type of counter offer is mitigation counter offer. With this sort of counter offer, the lender employee is countering the offer for the reason that they would yield more money taking the home to foreclosure than they would if they accepted the short sale.

The single way to figure out which kind of counter offer you are getting is to recognize the BPO value. In order to figure out the BPO figure, you need to do a little detective work. Also, keep in mind that when you are working with a mitigation counter offer you should never have a conversation regarding purchase price. The chat should always be in relation to net proceeds.

We appreciate that the sum of money the bank will receive is derived from the purchase price. However, with all of the other fees and commissions that are attached to a deal like this, there are lots of ways to increase the banks net proceeds without increasing the purchase price. Closing costs, taxes, HOA’s, commissions, title and escrow fees and other stuff like that can help the lender keep their net proceeds high.

Keep all of this in mind when you are dealing with counter offers and lenders. Nonetheless, bear in mind that if you do not know what type of counter offer you are dealing with, you are putting yourself in a hard negotiating situation.

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