Ed's Chesprocott Region Blog: Yes A Bank Will Negotiate a Price Reduction on a Short Sale

Yes A Bank Will Negotiate a Price Reduction on a Short Sale

Yes A Bank Will Negotiate a Price Reduction on a Short Sale

We still have many short sales in Connecticut, and while their numbers are getting smaller they are still a strong part of the market. In my area of towns around a center hub of Waterbury CT, short sales accounted for almost 25% of all closings in 2016.

Yes A Bank Will Negotiate a Price Reduction on a Short Sale

I have one short sale going through the process in Watertown CT. We were under contract with 10 days after going on the market. The short sale was approved 2 1/2 weeks after all documents were sent to the bank, and then the buyer's did their inspection.

The property was found to have a cracked septic tank as well as suspicions that the leach fields were ready to collapse. Hard estimates were collected and we submitted a challenge to the lender for a reduction for the value of the repairs.  The buyers were not in a position to come up with an additional $30,000 to have the system corrected.

When making the appeal to the bank, the inspection report as well as the estimates for the repairs were submitted. At the top of each document was the State license number of each party who's reports were being submitted.

In addition, the listing would need to be corrected to reflect the failed system should the bank reject the appeal and the buyers were to pull out of the transaction.

After a reasonable amount of time, the lender came back with an acceptance of the reduction and a new letter was offered so that the deal could proceed to closing. New HUDs will need to be prepared once we are ready to close and contract addendums sent forward as well.

Working with experienced real estate professionals as well as a broker with a successful track record on short sales is a must for Connecticut home owners trying to avoid foreclosure. I am here to help Central Connecticut home owners through their issues and get a successful short sale.

 

 

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Do you know somebody who is behind on their mortgage and doesn't know what to do? I may be able to help them, especially if they are facing foreclosure!

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Whether looking to buy or sell, we service the Greater Waterbury towns of Beacon Falls, Bethany, Cheshire, Naugatuck, Middlebury, Southington, Thomaston, Waterbury, Watertown and Wolcott 

Ed Silva  RE/MAX Professionals,  www.edwardsilva.com  203-206-0754

Comment balloon 13 commentsEd Silva • March 08 2017 04:47PM

Comments

It does work best with someone that knows the ins and out

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) 8 months ago

25% of all sales is a pretty high number, Ed. What was it at the low point of your market?

Posted by Nina Hollander, Your Charlotte/Waxhaw/Fort Mill Area Realtor (RE/MAX Executive | Charlotte, NC) 8 months ago

Ed good job in going to bat for your Buyer and getting the reduction.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) 8 months ago

It's so important to work with experienced real estate professionals! Happy to hear things worked out on this one!

Posted by Sharon Tara, New Hampshire Home Stager (Sharon Tara Transformations) 8 months ago

Ed, I am surprised to see that 25% of 2016 sales were short.  It makes a difference who buyers and sellers hire to represent them.  An inexperienced agent may have caused that transaction to go a different direction.  Well done!

Posted by Kathleen Daniels, San Jose Homes for Sale - Probate Broker (KD Realty - 408.972.1822) 8 months ago

Good morning Ed.  For major issues such as this that were unknown prior to signing the contract banks will re-negotiate.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) 8 months ago

It is actually great when a bank actually listens and makes those changes. Of course doing it right and including inspections with license numbers is the right way. Congrats Ed Silva 

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) 8 months ago

You were dealing with the voice of reason and they responded just as they should have. That is good to know that things turn out like they should, Ed.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) 8 months ago

Ed, how sad to hear that a word I have erased from my vocabulary about three or four years ago is still rampant in your market. I guess Case Schiller's announcement about six months or so ago that Nationwide every market has rebounded did not get to go the to the greater Waterbury CT area and see how the market is doing....

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) 8 months ago

Hi Ed - congratulations on getting it done.  It works when buyers and sells work with short sale experienced professionals.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) 8 months ago

Excellent information Ed. This is an unfortunate but real situation.

Posted by Noah Seidenberg, Chicagoland and Suburbs (800) 858-7917 (Coldwell Banker) 8 months ago

Ed, Good job by you and certainly any time a short sale is involved an experience realtor is critical to have on your side. 

Posted by Robert Bob Gilbert, Your Katy TX ( West of Houston) Real Estate Expert (Berkshire Hathaway HomeServices Anderson Properties) 8 months ago

Ed, you are the epitome of a good CT short sale agent for your sellers and this instance was a tough one I am sure...Congrats.

Posted by Ginny Gorman, Homes for Sale in North Kingstown RI and beyond (RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate) 8 months ago

Participate