Replies to This Discussion

Permalink Reply by Brigitte Powell on June 4, 2010 at 4:13am

ok, but the Buyer want to go conventional and was asking Freddie Mac to pay 3% cc... We were told by the previous negotiator that they would pay buyers closing cost and it was evident on all the worksheet counter offers from them....Until Rosie took over and dropped the bombshell that Freddie only pays cc for buyers if they go FHA or VA....They pay nothing if the buyer of one of their short sales goes conventional......per Rosie, they also don't pay any Home Owners Warranty.

Ben Benita said:

Brigette -- I know I have a document that states something like:

"an FHA Seller, selling via short sale to an FHA Buyer, will only allow 1% in closing cost credits"

Again, if this is the case, the negotiator will tell you:

"NO MOER THAN 1% IS ALLOWED"

if you press them however, you CAN get 3% done......

Permalink Reply by Brigitte Powell on June 4, 2010 at 4:16am

Juliana...WOW!!! That is just crazy! How long have you been working on this one? Is yours Freddie Mac or Fannie?

Juliana Oprea said:

Ben,

I got updates. Yesterday morning as I told you I called again CEO's office explaining what's going on. Michelle was very nice, escalate the file and gave me of course case #. She told me that we should hear back before the end of business day yesterday from a Senior Manager from SS dept and just in case if nobody calls me, to call back again today. Nobody called me yesterday and I was planning to call again this morning to get another escalation going. I just got the approval letter from the negotiator!!! Was this a game from her or what?

Ben Benita said:

Brigette -- I know I have a document that states something like:

"an FHA Seller, selling via short sale to an FHA Buyer, will only allow 1% in closing cost credits"

Again, if this is the case, the negotiator will tell you:

"NO MOER THAN 1% IS ALLOWED"

if you press them however, you CAN get 3% done......

Permalink Reply by Ben Benita on June 4, 2010 at 4:17am

Brigette -- you ALWAYS want to be a pain in the _____, BUT, be nice about it....by that I mean, when speaking to your negotiator, use lines like:

"I know you are stuck in the middle like me...."
or
"I know you are busy and can only imagine how many short sales you are working on...."
or
"My supervisor or broker is all over me about this....."

When you come across as being "bove or mightier" than your negotiator, that get defensive....when you come across as "being in the smae boat and just trying to get this done" they get VERY helpful.

As always, keep in mind your file is likely 1 of several HUNDRED they are working. Negotiators get TONS of calls and requests every day. If you call them, are nice, and do so regularly, by that I mean almost everyday so they remember you, things will work out fine....I have TONS of other good lines to use when it comes time to escalate!!!!

Permalink Reply by Brigitte Powell on June 4, 2010 at 4:22am

Ben....you are a peach :-) Just when I'm in a fog you clear the air a little. I will definitely look for that book ;-)

Ben Benita said:

Juliana -- B of A gets paid to "Service" the note, as soon as the short sale gets done, they lose your Seller as a client and nO LONGER GET PAID TO SERVICE THE NOTE....this is the number one reason short sales take so long.

#2 Reason -- Approving short sales creates more work for los mitigaiton. I have been told on average there are 12 to 40 pages of documents and disclosures loss mit. must provide to the investor explaining what happened when a short sale gets approved.....if they irritate you and you give up, guess what, they simply delete your file/property from the system and the property goes over to the foreclosure or REO department......no more calls or hassles from you....

Again, we are up against a TOTALLY UNMOTIVATED group working with Servicers on short sales...that is why it is SO SO SO SO (you get the point) helpful when you know who the ivnestor or MI company is, THOSE are the persons that stand to lose the cash if a foreclosure turns up versus a short sale....get THEM invovled in the process and watch how quick and cooperative the Servicer becomes!!!!!

Enjoy your weekend.

Permalink Reply by Ben Benita on June 4, 2010 at 4:23am

Brigette -- regarding conventional Buyer, try using thigns like:

"I can not believe Freddie is "prejudiced" against conventional Buyers....."

Slip in that word and see what she says.

Try asking:

"If the Buyer increases his/her offer amount such that the NET to the ivnestor remains the same, can we get this done, will they approve it just this once or make an exception....."

Threaten to contact the OCC, the OTS, the state attorney general, or go to local news media by saying something like:

"My broker, the Buyers attorney, whomever, suggested we contact........"

This keeps you out of the hot seat and puts the bank on notice.......

Permalink Reply by Brigitte Powell on June 4, 2010 at 4:24am

:-) I took notes, thank you Ben. Have already sent instructions to my Seller and am on hold for BofA :-) Have a great weekend

Ben Benita said:

Brigette -- you ALWAYS want to be a pain in the _____, BUT, be nice about it....by that I mean, when speaking to your negotiator, use lines like:

"I know you are stuck in the middle like me...."
or
"I know you are busy and can only imagine how many short sales you are working on...."
or
"My supervisor or broker is all over me about this....."

When you come across as being "bove or mightier" than your negotiator, that get defensive....when you come across as "being in the smae boat and just trying to get this done" they get VERY helpful.

As always, keep in mind your file is likely 1 of several HUNDRED they are working. Negotiators get TONS of calls and requests every day. If you call them, are nice, and do so regularly, by that I mean almost everyday so they remember you, things will work out fine....I have TONS of other good lines to use when it comes time to escalate!!!!

Permalink Reply by Juliana Oprea on June 4, 2010 at 4:28am

It's Freddie. We uploaded everything in Equator on 02/23/10 and we just got the approval today! Not bad but I had to fight a lot since our 3rd counter was just to correct an error on BOA's side and that happen on 05/18/10. Since then no word from the negotiator and she was constantly behind her tasks. I got the file escalated on 05/24 with the CEO's office and she sent me the email on 06/02 that she sent out the file to investor for approval and that I should wait 4-6 weeks for an approval. This morning got the approval.

Brigitte Powell said:

Juliana...WOW!!! That is just crazy! How long have you been working on this one? Is yours Freddie Mac or Fannie?

Juliana Oprea said:

Ben,

I got updates. Yesterday morning as I told you I called again CEO's office explaining what's going on. Michelle was very nice, escalate the file and gave me of course case #. She told me that we should hear back before the end of business day yesterday from a Senior Manager from SS dept and just in case if nobody calls me, to call back again today. Nobody called me yesterday and I was planning to call again this morning to get another escalation going. I just got the approval letter from the negotiator!!! Was this a game from her or what?

Ben Benita said:

Brigette -- I know I have a document that states something like:

"an FHA Seller, selling via short sale to an FHA Buyer, will only allow 1% in closing cost credits"

Again, if this is the case, the negotiator will tell you:

"NO MOER THAN 1% IS ALLOWED"

if you press them however, you CAN get 3% done......

Permalink Reply by Brigitte Powell on June 4, 2010 at 4:31am

just got an email from the Seller becaus I had asked her to go onto her BofA website for short sale sellers and ask for the MI and investors names ...she tried but she can't get anything from that website, she can only enter info when they let her and "read only". I told her if she has a number to call...call that number and request the info and also ask for a fax number...then fax her request and call back to make sure they got it.
According to Rosie Freddie Mac has never paid buyer closing cost - I opened a discussion on this subject but have not received any responses from anyone regarding this....so maybe that's true. I just don't get it...unless they think that an FHA /VA buyer is an owner occupant and a conventional buyer could be an investor?

Ben Benita said:

Brigette -- regarding conventional Buyer, try using thigns like:

"I can not believe Freddie is "prejudiced" against conventional Buyers....."

Slip in that word and see what she says.

Try asking:

"If the Buyer increases his/her offer amount such that the NET to the ivnestor remains the same, can we get this done, will they approve it just this once or make an exception....."

Threaten to contact the OCC, the OTS, the state attorney general, or go to local news media by saying something like:

"My broker, the Buyers attorney, whomever, suggested we contact........"

This keeps you out of the hot seat and puts the bank on notice.......

Permalink Reply by Brigitte Powell on June 4, 2010 at 4:34am

Buyer has decided to cut to the chase and pay her own closing cost. We accepted their counter offer and it has now "gone to MI" I will find out who MI is and who investors are.

Ben Benita said:

Brigette -- regarding conventional Buyer, try using thigns like:

"I can not believe Freddie is "prejudiced" against conventional Buyers....."

Slip in that word and see what she says.

Try asking:

"If the Buyer increases his/her offer amount such that the NET to the ivnestor remains the same, can we get this done, will they approve it just this once or make an exception....."

Threaten to contact the OCC, the OTS, the state attorney general, or go to local news media by saying something like:

"My broker, the Buyers attorney, whomever, suggested we contact........"

This keeps you out of the hot seat and puts the bank on notice.......

Permalink Reply by Brigitte Powell on June 4, 2010 at 4:39am

Mine is Freddie also and it has been escalated (actually same time frame as yours) LOL!!! No kidding. Same thing with my negotiator..never once got a call back or even an email back from her until she was replaced because I called the escalation dept- CEO office (I did get a number :-) lol!). I was told by my escalation asset manager that she sent the package to the MI (mortgage insurance co.) Ben has been extremely helpful :-). But I will call again because we need to close prior to the 30th in order for this buyer to get her first time home buyer tax credit. I am exhausted.

Juliana Oprea said:

It's Freddie. We uploaded everything in Equator on 02/23/10 and we just got the approval today! Not bad but I had to fight a lot since our 3rd counter was just to correct an error on BOA's side and that happen on 05/18/10. Since then no word from the negotiator and she was constantly behind her tasks. I got the file escalated on 05/24 with the CEO's office and she sent me the email on 06/02 that she sent out the file to investor for approval and that I should wait 4-6 weeks for an approval. This morning got the approval.

Brigitte Powell said:

Juliana...WOW!!! That is just crazy! How long have you been working on this one? Is yours Freddie Mac or Fannie?

Juliana Oprea said:

Ben,

I got updates. Yesterday morning as I told you I called again CEO's office explaining what's going on. Michelle was very nice, escalate the file and gave me of course case #. She told me that we should hear back before the end of business day yesterday from a Senior Manager from SS dept and just in case if nobody calls me, to call back again today. Nobody called me yesterday and I was planning to call again this morning to get another escalation going. I just got the approval letter from the negotiator!!! Was this a game from her or what?

Ben Benita said:

Brigette -- I know I have a document that states something like:

"an FHA Seller, selling via short sale to an FHA Buyer, will only allow 1% in closing cost credits"

Again, if this is the case, the negotiator will tell you:

"NO MOER THAN 1% IS ALLOWED"

if you press them however, you CAN get 3% done......

Permalink Reply by Ben Benita on June 4, 2010 at 4:55am

Freddie Mac WILL pay closing costs if you push the issue....I would guess Rosie is just getting tired of you......you will see this is a good thing.

BEST NEGOTIAITON TIP I EVER GOT -- I had the pleasure of meeting George Ross, Donald Trump's attorney (yes I am name dropping but it is a good story) at an investor summit in Maryland.

I saw him eating lunch at teh hotel restaurant and thought to myself:
"Well, here is a once in a lifemtime opportunity to meet this guy"
so I sat down net to him and the host of the event and got to spend about 20 minutes picking his brain.
His best advice on negotiations:

"Ben, the BEST negotiator I ever came across, even after having worked with Donald for xxxx years, is my 4 year old niece....she just keeps asking and asking and asking until she gets her way"

Anyone here with kids knows this is 100% true and it works with short sales as well.....
JUST KEEP ASKING!!!
DO NOT GIVE UP AND DO NOT GO AWAY!!!!!
Do it for your client and of course for your paycheck!!!!

If I find out my employees "gave up" or their negotiator "beat them", they get educated the first time on how NOT to let that happen again....if it does, they are "released from services".

FOr most of you, this is the WOST time ever in your client's life and if you are not willing to go to bat for them, I would STRONGLY suggest you stay away from short sales.....or, keep your eyes on this message board!!!!

:-)

Enjoy your weekend......

Permalink Reply by Juliana Oprea on June 4, 2010 at 5:11am

You're so right! Keep asking was the only way I got this done. Thank you for your advise!!! Now, I'm ready for the fight with Chase and I'm starting another one next week with ASC/WF.

Ben Benita said:

Freddie Mac WILL pay closing costs if you push the issue....I would guess Rosie is just getting tired of you......you will see this is a good thing.

BEST NEGOTIAITON TIP I EVER GOT -- I had the pleasure of meeting George Ross, Donald Trump's attorney (yes I am name dropping but it is a good story) at an investor summit in Maryland.

I saw him eating lunch at teh hotel restaurant and thought to myself:
"Well, here is a once in a lifemtime opportunity to meet this guy"
so I sat down net to him and the host of the event and got to spend about 20 minutes picking his brain.
His best advice on negotiations:

"Ben, the BEST negotiator I ever came across, even after having worked with Donald for xxxx years, is my 4 year old niece....she just keeps asking and asking and asking until she gets her way"

Anyone here with kids knows this is 100% true and it works with short sales as well.....
JUST KEEP ASKING!!!
DO NOT GIVE UP AND DO NOT GO AWAY!!!!!
Do it for your client and of course for your paycheck!!!!

If I find out my employees "gave up" or their negotiator "beat them", they get educated the first time on how NOT to let that happen again....if it does, they are "released from services".

FOr most of you, this is the WOST time ever in your client's life and if you are not willing to go to bat for them, I would STRONGLY suggest you stay away from short sales.....or, keep your eyes on this message board!!!!

:-)

Enjoy your weekend......

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