A Common Utah Short Sale Negotiation Mistake: Talking Too Much

Salt Lake City UTAH – This is the worst sin of negotiating. Don't tell the buyer's or their agent your life's story.

What do you think would pop into a buyer's head if they heard this out of a seller's mouth? "We must sell the home because it is in foreclosure and if we don't sell it be June 23rd, then the bank will foreclose on it."

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

Immediately they will think, "I wonder what they owe on the house. If it doesn't sell they will have a foreclosure. The sellers probably just want to get what they owe on the home so they can avoid foreclosure."

This is an extreme example, but it shows you how a simple slip of the tongue could cause a seller to lose a large amount of their hard earned equity.

A seller facing foreclosure in that situation might be desperate enough to "get out" with none of their equity just to avoid foreclosure.

But, what if they buyer was willing to pay the market value for the home? That seller just lost all their equity! When a buyer asks why you are selling answer them without giving away any extra information.

You could say, "Oh, we would like to move to a smaller home." You don't need to say much more than that. And don't tell them you must sell by a certain date to avoid foreclosure!

Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at forsiecity@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (801) 651-0707

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Bountiful loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Dave Forsberg.

Dave is a Real Estate Agent at Presidio Utah Real Estate - Bountiful. Urah Short Sales Realtor:

Phone: (801) 651-0707. utahhomesaver@gmail.com.

Greater Salt Lake Short Sales. Real Help for those that need it most.

Need to Sell immediately,  we can buy now and close in 7 days call me at 801.651.0707

David Forsberg specializes in loan modification assistance and short sales in Utah. Bountiful Loan Modification Help, Bountiful Short Sales. Bountiful Short Sale Realtor Bountiful UT Short Sales. Bountiful Realtor. North Salt Lake Realtor, North Salt Lake Short Sales. Short Sales in North Salt Lake. Woods Cross Short Sales. Short Sales in Woods Cross. Woods Cross Realtor. Sunset Short Sales. Short Sales in Sunset. Sunset Realtor. Kaysville Short Sales. Kaysville Realtor. Short Sales in Kaysville. Salt Lake City Short Sales. Short Sales in Salt Lake City. Salt Lake City Realtor. Centerville Short Sales. Short Sales in Centerville. Centerville Realtor.


Copyright 2011. All Rights Reserved.

UTAH Short Sales: Why Do Short Sales Fail?

Salt Lake City, UTAH – I recently received a question from James. Here was his question.

"I’ve heard that there is a 70% failure rate on short sales. Is that true? If so, then why do so many short sales fail? James”

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

Here is the answer to his question. Yes, a lot of short sales do fail. However, those statistics are for individual short sale offers submitted to lenders. If the first offer on a short sale is turned down, then another offer is usually submitted.

On each individual house being sold, the failure rate is much lower. Here are the reasons that many short sales do fail.

Reason #1: The sales price is lower than the lender wants. The lender thinks the house is worth X, but the sales price is $30,000 lower than X.

The lenders are not always getting good information on the property values. In my opinion, their valuation method is flawed.

There is a serious conflict of interest in the way lenders obtain their property value. But, the lenders don’t really care to fix it.

Reason #2: The tenant doesn’t want the home to be shown. Many short sales are rental properties. However, the tenant doesn’t want the home to be shown to buyers.

Why not? Well, if the house sells then they will have to move out and find another place. They are comfortable where they are at and they don’t want to move.

This is why a home that is rented is much harder to short sell than a vacant home.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at ForsieCity@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (801) 651-0707

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Utah loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Dave Forsberg.

Dave is a Real Estate Agent at Presidio Utah Real Estate - Bountiful. Bountiful Short Sales Realtor:

Phone: (801) 651-0707. Forsiecity@gmail.com.

Greater Salt Lake Short Sales. Real Help for those that need it most.

Need to sell immediately?   Wee buy homes in any condition,  and close in less than 7 days, call me at 801.651.0707 

David Forsberg specializes in loan modification assistance and short sales in Bountiful Utah. Bountiful Loan Modification Help, Bountiful Short Sales. Bountiful Short Sale Realtor Bountiful UT Short Sales. Bountiful Realtor. Salt Lake City Short Sales. Short Sales in Utah. Bountiful Loan Mod Programs. Loan Modification Programs.

Bountiful Short Sales: Bankers, can we have more open and transparent loan modifications?

Bountiful UTAH - Loan modifications have become a joke. People get turned down for no reason at all.


People really want to keep their home, but just can’t figure out what to do. The loan modification negotiators realize how desperate the homeowners are. They use their power over the person to take an ego trip.


“I’m going to make this person beg me personally for their loan modification”, they think to themselves. Everything becomes a competition between negotiators on who can squeeze more out of people.


They talk to their fellow negotiators about what they are able to force people to do. “I saw that one lady had $100 a month for entertainment on her financial statement. I told her she didn’t deserve money for entertainment when she owed money to us”, they say to them.


Meanwhile, the other negotiator tells their story. “One couple had $200 a month on their financial statement to give to their church. As soon as I saw that, I increased the payment I asked by $200″, they say.
Yes, power does corrupt. These loan modification negotiators hold they keys to the homeowners future staying in their home.


Here is what needs to be added to the Homeowner’s Bill of Rights.
1. Whenever a homeowner is turned down for a loan modification, the lender shall give them a written, coherent response along with the reason they were turned down. It needs to specifically detail why they were denied and what they can do to be approved.


2. Homeowners are given all the guidelines at the beginning of the loan modification process. They should receive the same guidelines the loan modification negotiator receives. That way they can make sure that they aren’t lying to them.

Thinking about a short sale? I can help you short sale your property and never pay the bank another dime. Send me an e-mail at utahhomesaver@gmail.com. I will contact you for a free consultation.  When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call Dave at 801-651-0707.

Thinking about a loan modification? Our Utah Home Saver Loan Modification Kit has the instructions you will need to get a loan modification approved with your bank.  This is a FREE for you, all you have to do is call or  email us today.

Thank you for taking a few minutes of your busy day to read this, Dave Forsberg.

Dave is a Realtor with Prudential Utah Real Estate - Bountiful.

Phone: 801.651.0707   Email: utahhomesaver@gmail.com

Dave Forsberg and The Utah Home Saver Team specialize in helping Davis County, Utah Homeowners short sale and never pay the bank another dime. Bountiful Loan Modification Help, Bountiful Short Sales. Bountiful Short Sale Realtor. Bountiful Realtors. Bountiful Realty. Bountiful Realtor. North Salt Lake Short Sales. Woods Cross Short Sale Realtor. Centerville Short Sales. Farmington Short Sale Realtor. Fruit Heights Short Sales. Kaysville Short Sales Realtor. Layton Short Sales. Layton Short Sales Realtors. Syracuse Short Sales. Clearfield Short Sales Realtor. Davis County Utah Realtor. Stop Foreclosure. Stop Utah Foreclosure. Avoid Foreclosure. Avoid Utah Foreclosure. Foreclosure Alternatives. Utah Foreclosure Alternatives. Bountiful Homes for Sale. Bountiful Houses for Sale.utahhomesaver@gmail.com

Bountiful Short Sales: A Few Examples of Loan Servicers Not Doing Their Job

Bountiful UTAH - Most people think the person they mail their mortgage payment to every month is the owner of their loan. This is an absolute myth.


In fact, most of the time, they are not the owner of the loan. As an example, 80% of all loans that Bank of America (regardless of if they were or were not Countrywide loans) handles are not owned by Bank of America at all.  The majority of their loans are owned by Fannie Mae.


The largest owners of US mortgages are two companies that some would allege are owned by The United States Government, and the tax payers of this Country. They are the GSE's (Fannie Mae and Freddie Mac.)  They own an estimated 55-60% of all US Mortgages.


An additional estimated 10-15% are insured by Uncle Sam as well, through the FHA and VA loan guarantee programs. Another estimated 10-15% are owned by Wall Street Firms, Pension Funds, and other entities.


What does this mean to you? It means the company you mail your check to every month is essentially a hired gun. They are paid to collect payments, handle accounting and escrows, collect on delinquent accounts, and act as the front person for the owner of the loan.


They forward the money received to the owner of the loan, minus a small fee to themselves. This small fee on thousands (or millions in some cases) of mortgages means they are paid very, very well. In fact, the business is so profitable that recently the IBM computer company opened a subsidiary loan servicing company (IBM Lender Business Process Services, Inc.)


Now that I have laid the groundwork, let me explain how the loan servicing companies have worked against the loan owners best interest.


Acting as a servicer puts them close to the legal equivalent of a trustee. This means they can do whatever they want to, right?  NO! Let me explain.


A trustee has a fiduciary duty to whoever they represent. They are required to act in their client’s best interest.
If they do not do this, then they can be legally liable for any loss their loan owner incurs as a result of the trustee’s negligence. Just as real estate agents are required to act in their client’s best interest, loan servicers are also required to act in their client’s best interest.


Let’s say an agent listed a house and double sided it to a buyer for 200k. A 225k offer came in earlier, but the agent never presented it to the seller. Do you think the seller would be angry? Of course they would be.


Or, let’s say you managed an apartment community. You only had a leasing person on site one day a week.  You did this to save money. As a result the apartment complex only leased half of their apartments for the next year.


You caused them to lose half of their year’s rents. Would that apartment manager be unhappy? You bet they would be. The loan servicers are doing the exact same thing.


Here are a few examples of them breaching their fiduciary duty to their clients:
Example #1: Not giving buyers an answer on a short sale within a reasonable time period. Loan servicers should help their investors recoup as much money as possible from short sales.


Example #2: Turning down loan mods that amortize at a higher value than what is netted on a short sale or thru REO. Let me explain in a little more detail.  A homeowner had a reduction in income and can’t afford his original mortgage payment. The borrower has a stable income and agrees to pay $1,000 a month for the next 30 years. $1,000 a month for 30 years, at a 6.5% interest rate will repay a $158,210 mortgage.  


The loan servicer turns down the loan mod and forecloses. The house sells for $125,000 as an REO and the servicer nets $115,000.


Did the loan owner lose money? I think most people would agree that they did. Obviously there are other factors involved, but I think they would have done better if they had approved the homeowner’s offer.


Example #3: Not listing foreclosed properties quickly enough. I have witnessed several examples of banks foreclosing on a house and then taking 6 months to a year to put it up for sale.  As an example, there was a house foreclosed on September 9th, 2009. It was finally listed for sale 7 months later, in May 2010.


Say what you want, but waiting 7 months to put a property on the market is pathetic. If the mortgage holder had been an individual, do you think they would have listed the house a little faster than 7 months?


Thinking about a short sale? I can help you short sale your property and never pay the bank another dime. Send me an e-mail at utahhomesaver@gmail.com. I will contact you for a free consultation.  When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call Dave at 801-651-0707.

Thinking about a loan modification? Our Utah Home Saver Loan Modification Kit has the instructions you will need to get a loan modification approved with your bank.  This is a FREE for you, all you have to do is call or  email us today.

Thank you for taking a few minutes of your busy day to read this, Dave Forsberg.

Dave is a Realtor with Prudential Utah Real Estate - Bountiful.

Phone: 801.651.0707   Email: utahhomesaver@gmail.com

Dave Forsberg and The Utah Home Saver Team specialize in helping Davis County, Utah Homeowners short sale and never pay the bank another dime. Bountiful Loan Modification Help, Bountiful Short Sales. Bountiful Short Sale Realtor. Bountiful Realtors. Bountiful Realty. Bountiful Realtor. North Salt Lake Short Sales. Woods Cross Short Sale Realtor. Centerville Short Sales. Farmington Short Sale Realtor. Fruit Heights Short Sales. Kaysville Short Sales Realtor. Layton Short Sales. Layton Short Sales Realtors. Syracuse Short Sales. Clearfield Short Sales Realtor. Davis County Utah Realtor. Stop Foreclosure. Stop Utah Foreclosure. Avoid Foreclosure. Avoid Utah Foreclosure. Foreclosure Alternatives. Utah Foreclosure Alternatives. Bountiful Homes for Sale. Bountiful Houses for Sale.utahhomesaver@gmail.com