OfflineHey everyone:
I have learned something new today. Apparently that when you try and do a short sale, there are companies that call themselves "negotiators" that tyr to come into the mix. What they do is take your offer and go to the bank and "fight" for them to accept it. They have a nominal fee from you, but they also get paid by the bank as well. Usually they get about 3-4K per deal with maybe about 500-800 coming out of your pocket.
So, let's say the owner owes the bank 200K on the loan. The house is worth 250K. You come in and saythat you will offer, for example, 100K for the house. The negotiator takes that to the bank and tries to get them to accept it. If they do, great and if not, he comes back and asks you to up it a little bit.
Did anyone ever hear of these negotiators? Can't we talk to the banks ourselves? Why do we need them? Or do we need them at all?
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
Yes. I am trying to work on purchasing a home thru Countrywide. The short sale department told me IF they would do a short sale, she would forward me to a negotiator.
I had no idea about it so, I asked her and she basically told me the same as you posted (but, she left off the part about the fees). She just told me that they would work with submitting the offer, counter offers, and paperwork.
The lady in the short sale dept was supposed to call me back on Monday but, she still has not. Guess I need to make another call.
~~~~~~ Praying for our dream house ~~~~~~
What my agent told me was that the listing agent, when knowing that it is a short sale, enlists the negotiator. I found this weird because this is the only time I have heard of someone like that. Then I found an agent, who also is negotiator, so he explained how everything works. The home seller pays about 700-800 and the bank pays the rest. However, it is not guaranteed that the bank will pay, so there are all sorts of different stipulations that they put in place in order to cover their butt.
But, I guess you learn something new every day, right?
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
Would other buyers enlists negotiators to buy a property? I made an offer on a house and I upped the bid two times, from 13K to 16k above the listed price, and I got bumped by a buyer who offered more, and paid in cash. Can you enlist a negotiator to help you buy a house? This is my first entry so i hope i am not violating anything.
Rosalie
I don't think you can. I think their expertise are only in dealing with banks. Not sure though really.
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
If you have a deal and are willing to accept $800 less in profit do the deal. After all, not every deal has to be a huge profit. This may be the deal that gets the ball rolling downhill for you to close more deals with even bigger profits!
Thanks for sharing this information because it isn't something that I had heard of before.
I agree. I was just wondering if it is a common practice or someone is just trying to make money out of this.
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
I don't think, however that you have to use them. I have done some negotiations with the bank myself, and didn't need a negotiator to do it for me. Maybe this is something new that the banks are trying to implement?
Heather
"I can do all things through Christ who strengthens me" Phil 4:13