To understand the entire process of Short Sales in Branford Connecticut and New Haven County please read the articles below before reading this post. They will give you a greater understanding of where we are in this series on Short Sales.
Now that the complete short sale package is in the hands of the lender this is the time when you need an agent that is working with the seller and knows how to negotiate with the seller's lender.
The person we will be dealing with at the lender is typically known as the negotiator. When the negotiator gets the file it is checked to make sure that all the required paperwork is in the package and if the file is complete.
Some lenders will not even assign a negotiator until a complete short sale package has been submitted. It is critical that a complete package is submitted to the lender from the start.
Once the file has been checked by the negotiator and found to be complete a BPO will be ordered.
What is a BPO?
A BPO is a Broker's Price Opinion. This is an informal appraisal typically done by a local real estate agent the lender will hire to do a pricing report. The information this individual provides in their report back to the lender is what they believe the fair market value of the property is right now.
The value that this individual gives to the lender will be the amount they begin negotiations with. Once the lender lets us know what the note holder will accept as a net figure, we call the buyer's agent if their offer is lower so he/she can tell their buyer what the price will need to be for them to purchase this home. If the buyers agree to that price we have a deal and can begin all the closing and loan procedures for the buyer's side.
If this price is not agreeable and too far away to work with then we adjust all our marketing and the Multiple Listing Service to the price that will get this property sold.
It is generally much faster and easier to sell the home once the BPO has been done.
One of the most common causes of problems with the successful closing of a short sale is the lack of experience of the real estate agents involved.
After the file has been received follow up at least once a week; in some cases twice must be made with the negotiator to check on the progress and status of the file.
Enough cannot be said about how important it is to keep everyone aware of what is going on at each critical step of the negotiating process
Licensed Connecticut REALTOR®
10 Pine Orchard Road
Branford, Connecticut 06405
Call Donna at 203-488-1641, ext. 214
Disclaimer: All information provided by this author is strictly an opinion, is not guaranteed, may be based on information collected from several sources, which may or may not be deemed reliable at the time of researching this article and may be time sensitive.
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Copyright © 2009 by Donna Bigda, All Rights Reserved ...*Short Sales in Branford Connecticut and New Haven County - Inside the Process - Part 7*