Distressed Overland Park Seller/Client has a Question

Christan M of Overland Park, Kansas writes....

“Martin, when we met regarding my financial situation, you assured me we would get to the bottom of things quickly, and thank goodness we did!

My friends had told me my situation was hopeless, that I had no other option than a foreclosure.

I hadn’t missed a payment, my credit score was good, but I couldn’t keep spending money from savings to make that house payment. I’d been downsized at work, medical bills were piling up.

My lender told me I needed to miss at least 2 payments to qualify for any help from them. And when I did apply for a loan modification, it took months to get an answer. What a joke!

The answer was they would lower my payment $105.00 per month...While I’m $112,000 upside down on my home?

So that takes me out of the frying pan for a few months, after that, right back into the fire! we listed our home with you, and we are on our way!

I’ve got a neighbor who needs help...But that first meeting can seem really scary! Ideas?

Answer- Avoid Scared by Being Prepared

The short sale listing appointment can be a super intimidating and scary meeting for any borrower that is considering listing and or selling his/her home as a short sale. Some borrowers will to tell you all about how awful their experiences have been with the lending institutions, how many months they have spent on a loan modification to no avail, and how much equity and sweat equity they have put in their homes.

When the prospective seller is unloading this information, it is important to be both patient and sensitive.

People don’t believe you care until you show them.

Even though you are already calculating the list price and quite possibly the commission, this may not be the meeting where you lay all the cards on the table. And, for this very same reason, it is often difficult to go through almost insurmountable number of items that need to be collected and discussed in one fell swoop.

Here’s how you can tackle that problem without overwhelming poor Mr. and Mrs. Neighbor-Seller:

1. Seller Document Preparation When the listing consultation appointment is set, tell the sellers that you will need to review all of the following items at the meeting: mortgage statements, pay stubs, bank statements, tax returns.
2. Agent Document Preparation Attend the listing appointment with your state and local paperwork completed already. Be prepared to write in the few items that need to be discussed before obtaining signatures.
3. Short Sale Package Item Collection Collect and review the items that the seller provided. Discuss the hardship and have the seller write a five-sentence hardship letter before you leave the appointment.
4. Financial Statement Bring a blank financial statement to the appointment and have the sellers complete it while you are dotting i’s and crossing t’s on paperwork or taking photos or measurements of the property.

The short sale listing appointment can go on for hours and be completely overwhelming, if it’s not planned for well in advance! The above list keeps it manageable, and the good news is that once you are gone, you are gone—out of your sellers’ hair for awhile: that is, until you meet again to present what will hopefully be multiple offers on their property.

The information the lender requires can appear to be very personal in nature, but remember, we’re asking the lender to let us off the hook for a bunch of money, and putting you back on the road to financial recovery!

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