Hey, My Short Sale Was Rejected!!!
Solutions When The Bank Says “No”.

What happened? What’s going to happen now?

1. Did I do everything I could have done up front?
2. Was my package believable?
3. Did I prove enough proofs?
4. Did I speak bank talk?
5. What can I do now?
6. Is my deal dead?
7. Do I need another buyer?
8. Does this mean the Foreclosure Sales is going to happen?
9. What are my options?

Did I do everything I could have done?

No, otherwise it would have been approved. There is always more we can all do up front to get out offers accepted, but you’ll learn the life-lessons as you do several Short-Sales.

Was my package believable?

No, otherwise it would have been approved.

Did I provide enough proofs?

No,  otherwise it would have been approved.

Did I speak bank talk?

No, otherwise it would have been approved.

Is my deal dead?

No your deal isn’t dead, it simply needs help to get approved.

What can I do now?

1. Do the Top 10 Steps to get the Bank on-board and approve the loan.
2. Review the Top 10 Mistakes of Short Sale Packages and find your mistakes and correct them.

Top 10 Steps of Short Sale Packages

1. Complete package from Home Owner
2. Provide additional package from you
3. Provide addition items from outside sources
4. Contractor quote
5. Digital pictures of repairs
6. Comps-expired’s/sold’s/listed/FSBO
7. BPO
8. Reasons/proofs of owner’s distress (divorce/job loss)
9. Offer matches banks FMV minus repair quotes. Or offer matches MLS listing
10. Provide enough proofs/evidences to support Short Sale.

Top 10 Mistakes of Short Sale Packages

1. Incomplete package
2. Poorly written cover letter
3. Missing contractor quote with digital pictures of repairs
4. Missing or bad comps-expired’s/sold’s/listed/FSBO
5. Missing BPO
6. Inadequate Hardship Letter
7. Inadequate proof of Owner’s distress (divorce/job loss)
8. Offer didn’t match Bank’s belief FMV minus repair quote
9. Didn’t address the bank’s FMV belief in an as-is condition
10. Didn’t address the bank employees attitudes

Top 10 Objections and Rejections by Lenders

1. Short sale was objected. No reason given
2. We are going to take property back at the Trustee Sale-Too high of a BPO.
3. We think the value of the property is too high.
4. We are going to protect ourselves at the sale (2nd’s).
5. We think the Home Owner can pay this.
6. My boss wants to wait for a higher offer
7. We want you to raise the price of the listing
8. We want to wait for more offers
9. We want the home owner to sign an unsecured note
10. If we accept this, are giving the home owner a 1099

Ready to Role-Play?

1. Short Sale was rejected-My boss said “NO”.
2. We are going to take the property back at the Trustee Sale-Too high of BPO.
3. We think the value of the property is too high.
4. We are going to protect ourselves at the sale (2nd’s).
5. We think the Home Owner can pay this.
6. My boss wants to wait for a higher offer
7. We want you to raise the price of the listing
8. We want to wait for more offers
9. We want the home owner to sign an unsecured note
10. If we accept this, are giving the home owner a 1099

Great Solutions for Stuck Lenders

1. Improve items provided to Bank.
2. More in-depth higher Contractor’s quote with photos
3. More low Comps/Expired, Sold and Current Listings
4. Get more low-ball offers and submit them.
5. Say “I got another offer, but it was much less than the current one we have.”
6. Say “The buyer has found another property and wants to back out of this deal unless we are closing pretty soon. I have no backup offers.”
7. Have buyer back-out of offer due to slow bank response

More Banker is Stuck Options

1. Improve items provided by bank.
2.  More in-depth higher contractor’s quote with photos
3.  More low comps/expired, sold and current listings. Seek additional property problems (dig deeper=more/better problems)
4. Seek owners additional distressed situations (medical/work/divorce issues).

‘Banker is Stuck’ Part 3

1. Change Items on the Listing inviting No Bids
2.  Raise Price
3.  Mention ’Suspect Mold’
4.  Mention “extremely as-is”
5.  Buyer must sign full-release to Seller.
6. Change items on the Listing inviting lower bids
7.  Lower Price

‘Banker is Stuck’ Part 4

1. Wait and doing nothing (wait 2-3 weeks with no communication). DO NOT CALL THE BANK. When they call the first time, do not return the call. When they get you on the phone, simply mention that nothing is happening on that deal.
2. Act like you forgot about the deal-When the bank calls you, say “What deal is this? Hmmm.. O yeah, that deal,  nothing has happened, No showings-No offers, everyone was waiting for the approval of the contract.

Banker is STUCK-STUCK-STUCK

1. We still have options!!!
2. We are in control-the bank is not
3. Do not surrender control-
4. Allow the banker to feel they are in control
5. Realize you are always in control
6. Realize you always have options
7. DO NOT LET THE PROPERTY GO TO SALE.

Ninja Hardball Tactic #1

1. Have the home owner call the bank expressing fear and seeking-solutions, ie.
2. “I am afraid of the pending sale, so I think I should talk to a Bankruptcy Attorney. Do you think we can get this done in time, or do you recommend I see an Attorney to get the Bankruptcy filed?”

Ninja Hardball Tactic #2

1. Have a Bankruptcy Attorney contact the rep at the bank, stating: “My client has asked me to prepare Bankruptcy filing papers, and I am calling to find out who is working the file so I know ‘who’ to serve with the Court papers. I also thought I would call to see if this can be resolved without having to file Bankruptcy---my client mentioned something about a Short Sale?”

Ninja Hardball Tactic #3

1. Have a Real Estate Attorney contact the rep at the bank, stating: “My client is wanting me to investigate their options about Predatory Lending Laws regarding your loan origination. I thought I would call to see if this can be resolved without heading down that legal direction.”

Banker is Stuck 100%

• Bank won’t budge, even with calls from home owners and attorneys.
• Our goal-Get the file in the hands of another decision maker:
•  Foreclosure to Loss-Mitigation Department, or
•  Switch to Bankruptcy Department
• We can:
•  Create an LLC in less then 3 weeks (Utah is 1 day)
•  Get it’s own EIN # (Employer ID Number) from IRS
•  Deed the property into LLC-record the Deed
•  File for Chapter 11 (Business)
•  Renegotiate with Bankruptcy Department