REAL ESTATE AGENT’ ROLE AND RESPONSIBILITIES:

 

Market the home for sale at a price that will draw in an offer and be supported by a Broker’s Price Opinion (“BPO”).

Continue to keep the listing active.  Typically banks are requiring completely signed and accepted offers to be submitted for approval.

 Manage the potential for back up offers.

Communicate with the purchaser’s agent, regularly.  Assure that the purchaser is still engaged and committed to this property.

Need to protect sellers from liability in the event the bank approves the short sale, but the terms are not manageable for the seller.

Preventing appraisals from “killing” the sale.

With second mortgages, it isn’t unusual that the purchaser may have to bring in “extra cash”.  Agent may need to negotiate further with a purchaser and their agent to accomplish this.  Most purchaser’s appreciate that they are buying a home at such a great price that is still “owner occupied” and well cared for by the seller.

 

LOSS MITIGATION CONSULTANT’S ROLES AND RESPONSIBILITES:

Discuss with homeowner the process of a short sale, and why it may be the best available option.  Understanding credit, tax and legal consequences.  May refer certain clients to bankruptcy attorneys and CPA’s for advice.

 

Informing the client on the importance of an offer being made on their home to initiate the process.  Helping the seller to understand whether or not to continue to make payments, and why.

 

Making sure that if the client is not making payments, and the bank begins a foreclosure process, that this is managed.  Trying to avoid having the lender go to auction, since this limits the owner’s time they have to sell and close on the home.  There are also additional fees incurred.

 

Negotiating with the bank to approve the short sale with a sign off on deficiency(s).  Assuring that all possible costs are included in the preliminary HUD-1 that is submitted to the lender in the request for short sale.  Managing the fact that costs associated with real estate taxes and other delinquencies may be increasing.

 

Negotiations with second mortgage holders continue to be challenging.