This episode of The Most Dwanderful Real Estate Podcast Ever outlines the third offer in the short sale process. This is the offer where you get down to business with the bank rep or loss mitigator and crunch the numbers to show them how much it is costing the bank to keep holding on to this property. In light of the emotional attachment and fear that you have built up with the previous two offers, you have a good foundation to outline the potential financial loss that the bank will incur if they continue with the foreclosure process. Especially considering the upcoming dip in the market, you have a compelling case if you play your cards right and don’t back down.
Time Stamped show Notes:
- 2:27 – Dwan describes the rain or shine commitment she has to fulfill everyday of walking her dogs and taking them to the dog park, but it is also helping her stay in shape.
- 7:45 – Dwan checks in with listeners on their progress in short sales and creative financing.
- 8:24 – This episode is about the third offer to the bank.
- 9:05 – Go to the Dwanderful Facebook page to help Dwan name her Dwanosaur.
- 9:54 – If you haven’t yet, invest $1 to join the Dwanderful.com membership site and be able to join the LIVE Coaching Calls every Wednesday morning and have access to so many additional resources.
- 10:37 – The emphasis of the third offer is the financial loss to the bank. You will tell them that based on what you’re seeing now, you’ll need to go back to your first offer of 40% of the value of the house. The bank rep will get mad, but you will negotiate with them and say that you’re willing to meet them in the middle (50% of the value).
- 13:23 – In the Short Sale Program on the Dwanderful site, you will find the Timeline Letter. This is the key to the third offer. It will help you crunch the numbers with the bank rep directly, taking into account the value of the house minus missed payments, real estate taxes, forced insurance, repairs, 6% real estate commission, eviction of the homeowners, and an attorney for the foreclosure.
- 18:24 – By presenting your offer as saving the bank money by having them lower the price of the house, you are giving them an offer they (almost) can’t refuse.
- 19:53 – Some people assume that homeowners in foreclosure are only a payment or two behind on their payments, but on average they are 12-18 payments behind, which is a big loss of income for the bank.
- 21:03 – After your second offer, the bank will want to know why you want the house. You should agree with them but say that the house fits your criteria and you’re willing to buy it for the right price. When you tell them that you are not in the business of losing money, they will say that they aren’t either. This is your opening to crunch the numbers with them.
- 23:42 – Dwan outlines a script you can use when crunching the numbers with the bank rep.
- 27:09 – Next week, Dwan will talk about the secret weapons of bankruptcy, quarterly and annual reports, and LLRs that can add time to the process and inflate the expenses for the bank.
- 29:34 – Your assignment after this episode is to go to Dwanderful.com/lingo and get your free program. Be sure to opt in by confirming your email address in order to receive it.