How big is your short sale package??

Question

Just curious on how everyone puts their short sale packages together. Do you make it as big as possible packing as many details and information as you can. Or do you like to keep it simple and just put in the offer and the required docs? Mine are ranging from 60-90 pages right now because we like to put in market research, comps, town information etc. Just wanted to exchange some ideas and see what's working for all you investors out there.

Steve Londeau · Answer

I used to send a TON of info as well. But sending a 100+ page fax got to be a pain in the ass! I send in what's required, its usually about 30-50 pages, and then post-BPO I will unload on them with more info if needed. Lately, in Michigan, I don't need a lot of ammo. I just say "Michigan" and that's all it usually takes! :P

Nick J. · Answer

I can assure you a BPO was done. Lenders are scared of the big bad Auditor. BPO's can done "exterior" without you knowing about it or "lazy" that's where the agent simply pulls comps. If you got an acceptance letter before an Interior was done you can rest assured you offered to much, regardless if the numbers worked you probably offered to much from the start.

The last thing I want is to have my 1st offer accepted or have it accepted w/out an agent showing up and seeing the inside.

I don't mean to insult or get into a "who's better" match but it almost seems like you've got some more learning to do when it comes to shorts. I noticed you mentioned you have "negotiators" you might want to do the legwork yourself a few times Good luck to ya

Lafi S. · Answer

Honestly, I don't think I can ever learn enough with these short sales. I have been doing them for about 2 years now and it seems like everyone has something new to teach.

But I do see your point in not showing all your cards at once.

Last year I did all of my negotiations on my own and it was just too time consuming. Now I am starting to bring in people just to handle my negotiations. Some of them are members of this site so I hope they are reading this and taking in some of the advice!

Justin S. · Answer

Good point, if the first one is accepted then you offered too much.

Justin S. · Answer

Lafi-

I won't speak for Nick, but I think what he means is that you do not show them all your cards at once.  Once you enter negotiations then you can submit items to justify your price, but only at that point.

If you submit everything at once and the bank comes back at a higher price, what are you going to use to counterfoffer?

Lafi S. · Answer

Haha no I am not fresh from a weekend seminar Nick. You are saying all of that is crap but at the same time you are telling me that you will use it if the lender gives you any trouble.

So what is your reasoning here? It's crap if you put it in the original submission but it's not if you use it later?

I understand what you guys are saying that the necessary documents are all the lender needs to get the bpo ordered. But at the same time my negotiators have used all the information they put in their original packages to much success.

I've had cases where the lender will accept my offer before ordering an interior BPO. I'm not saying it's the norm but it has happened. To me I don't think it wil hurt the offer at all if it is submitted in the package, what you guys are saying is that it won't help. How can we ever know?!?

Harrison Painter · Answer

Agreed, common sense tells us to submit everything possible to make the process smooth.

The problem is these banks do not work on common sense! LOL

~Harrison Painter

Scott Hubbard · Answer

I have to agree with Nick, that is too much information!   I do not even submit returns unless it is FHA or VA, or the lender specifically requests them .

The loss mitigation staff have to upload fax documents into a their computer software system.  I seriously think they would catalog all 60 pages and even if they did the negotiator will only use the documents they need.

If after the BPO they do not meet your number, then submit comps, repair estimates, photos, appraisals,  crime statistics, etc. directly to the negotiator when trying to support your original offer.  Only then will those unrequired documents even be seen, if even then.

Nick J. · Answer

That's NUTS

Cover letter
P/S
HUD1
2 months bank statements (summary)
2 months paystubs
2 yr tax return (the 1st 2 pages)
Hardship letter
POF

average 15-17 pages

All that extra crap isn't worth it or necessary!  :roll:

All you're doing is opening up a file with the lenders. They will do the BPO and base their price on that. If you need to negotiate lower then use some of your arsenal. Don't give it to them all at once.  :wink:

Have you successfully completed any short sales yet? seriously? I'm not trying to call you out, but really, have you closed any or are you fresh from a weekend seminar telling you to do all that?