Hi folks. I'm sure there are many of you that are either doing short sales or want to do short sales. Therefore, I am posting this sample cover letter that may help you when submitting a short sale package to the lender. Just remember, you are submitting a fully signed and accepted contract and asking the lender to remove the 3rd party approval. You are not asking them to accept the offer. The lender is not a party to the contract. The offer has already been negotiated and accepted by the Seller.
Also, check with your Broker and your State's laws concerning short sales. I am a Florida Broker and this is how I handle short sales. This is my opinion only.
*************SAMPLE SHORT SALE COVER LETTER***************
Ref: LN# XXXXXXXXXXX
345 Saint Blasse Ct Kissimmee Fl 34758
Bertha Tutas SSN# xxx-xx-xxxx
To whom it may concern,
Following is a complete short sale package. We are requesting a removal of the 3rd party approval clause in the attached purchase contract.
Included are 56 pages:
-
Authorization to release information
-
Fully signed purchase contract with addendums
-
Buyer's pre-approval certificate from Bank of America
-
A copy of the escrow deposit
-
Preliminary HUD 1
-
Current listing agreement with addendums
-
Listing history
-
MLS property print out
-
Property market analysis
-
Hardship letter
-
Seller's financial statement
-
Last 2 years tax returns
-
Last 2 bank statements
-
Last 2 paycheck stubs
-
Proof of child support payments
My comments:
This property has been on the market since 01/04/08. It was first offered for sale at a price of $129,000. The property has been extensively marketed on the MLS, Realtor.com, Craigslist, Zillow, Trulia, Cyberhomes, Virtual tours and was syndicated to over 500 web sites.
Unfortunately, with the market decline, there was no interest in this property. The property has functional obsolescence being that it only has 2 bedrooms, a 1 car garage and sits on a "back flag" lot. With over 1200 homes available in Poinciana and only 30-40 selling per month this property was being overlooked. We slowly started lowering the price, however, trying to avoid getting into a short sale situation, we were not able to price the property low enough for the market to be interested.
Finally, the Seller, due to the hardship outlined in her letter, had to vacate the home. As hard as she tried to keep the house she could no longer afford to live there. At that time, we reduced the price to $109,000 then slowly reduced every 2 weeks until there was an interest. There were NO showings until we reduced to $59,000. Several days after reducing to this price we received and accepted the attached contract.
There has not been a 2 bedroom home that has sold, on the Osceola County side of Poinciana, since August and there has only been 2 in the last 4 months.
Based on current market conditions and the fact that this property is not only functionally obsolete but also a short sale, we feel the agreed purchase price of $60,000 is far better than the price the property will sell for if it is foreclosed on and placed back on the market. We have done everything possible to get as high a purchase price as the market will bare.
I have 14 years experience as a Broker specializing in selling Poinciana property and on behalf of Ms. Bertha request that Country Wide accept this short sale so we can move forward towards closing.
Please fee free to contact me with any questions or additional information that you may need. Thank you in advance for your attention to this matter.
Sincerely,
Bryant Tutas
Broker/owner
Tutas Towne Realty, Inc
407-873-2747
BrokerBryant@gmail.com
****************************************************
So there you go. Not only do you now have a sample cover letter for your short sales but you also have a list of what needs to go in your package. What do you think?
POINCIANA FLORIDA REAL ESTATE SHORT SALE INFORMATION
POINCIANA FLORIDA REAL ESTATE MARKET REPORTS
CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES
MORE INFO FROM BROKER BRYANT... THE SOURCE FOR POINCIANA REAL ESTATE
Copyright © 2008 http://www.brokerbryant.com/ | All Rights Reserved
Tutas Towne Realty has already successfully negotiated Short Sales with the following Lenders and Investors.
Chase Short Sale,Sun Trust Short Sale, GMAC Short Sale, Wells Fargo Short Sale,Bank of America Short Sale,USA Bank Short Sale,PNC Bank Short Sale,Citi Short Sale,HomeEq Short Sale,Fifth Third Bank Short Sale,ING Direct Short Sale,GreenTree Short Sale,Capital One Short Sale,ASC Short Sale,First Horizon Short Sale,E-Trade Short Sale,Transland Financial Short Sale,US Bank Short Sale,IBM LBPS Short Sale,
Nationstar Short Sale,BAC Florida Short Sale,Real Time Solutions Short Sale,Fannie Mae Short Sale
FHA Short Sale,Selene Finance Short Sale,DTA Solutions LLC Short sale,Flagstar Short Sale,IndyMac Short Sale
******************************************************************
Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales, Orlando Florida Short Sales, Celebration Florida Short Sales, Winderemere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.
Reserved Parking For "The Lovely Wife"...TLW...ROAR!
Blog Boy...
I tried so hard to blow up that picture. You're right it needs to be taken again so folks can see the animals actually live in that yard :)
And just so you know Blogging Bertha is in her closet jumping up and down with joy. Know why? Yup. You used her name in your post. She says maybe you do like her after all :)
P.S. I'm gonna let her have a few of my vanilla ice cream cups later. She's been so good. I mean please we do keep her locked up in a closet :)
TLW...ROAR!
Broker Bryant, the "functional obsolescence" coupled with the glut of homes makes this one definitely tough to move in that market. In your backyard it is AMAZING how far the prices have dropped.
Bryant,
Great letter. Thanks for the template. I will copy and paste for when I need it!
Bryant - I appreciate your willingness to share this information. I have a potential short sale listing coming up this weekend. I now have a lot more knowledge about the requirements than i did before. I don't think this will be my last one.
Is that a Donkey in the front yard.
This is very good. It focuses on the property and the market.
Not at all whiney and sticks to the facts. You know I love facts.
Hi
Here in New York we have to get Attorneys involved.
Mark R. Rienzie
Licensed Real Estate Agent
http://www.laffey.com/mrienzie
Is that the home in question? Funny.
That is a good letter -- you have covered all the bases. All the best. And Hi to TLW -- hope you are feeling better, girl.
I think that's a great letter. It lays everything out and leads the bank to a logical and reasonable solution. I'm glad you shared the letter. Thanks
BB,
Are you kidding at that price? It looks like a palace.
Even with the attached documents and supporting information they will wait 6 weeks and then want to change some minor part of the agreement and get irritated when they find out the buyer went on to some other home that they could get an answer from the seller.
BB - It never seizes to amaze me, you just one heck of a Realtor. Short and sweet and right to the point!
Petra...
At Tutas Towne we specialize in short, sweet and to the point :)
TLW...ROAR!
Bryant,
Thanks for the post. In New Jersey we now have addendums to short sale contracts which specify the date by which the buyer must have a response.
What is your method of identifying the negotiator.
BB, Excellent letter and this will help a lot of people understand what one should actually look like. Especially, the fact that you focused on the property and not more then necessary on the people, etc.
As always, BB, you got it. I love that and it's a lot better than mine. Since you're offering, I will most certainly save this.
Didn't know ya'll had farm animals down there. ;)
BB - The information and advice is invaluable... It should make the negotiators job much easier! I have to say that the photo is just priceless... I really want a goat in my suburban neighborhood.
Bryant,
A good cover letter can go a long way in expediting a short sale. Think of how many agents and brokers the bank deals with everyday and how many of the agents don't really know what they are doing. I'm sure the people on the phone on the lenders end have learned to forge ahead with short sales who have agents who know what they're doing and can get the thing closed and let the agents who don't know what they're doing fall by the wayside, because the customer service people have learned it won't get closed without a knowledgeable agent.
BB- Nice letter that spells it out very clearly why it would be in the lenders best interest to allow the short sale to continue.
Best,
Scott
That is great BB. I am doing short sales but they have been handled by an outside source. I have not actually done any of the submission. This is certainly excellent!
Nice letter - I really can't believe the price though.
Bryant, thank you soooooooooooooooooooooooo much for sharing your letter. I do send in all the price reductions, how many showings at each reduction, the feedback, but this letter rocks.
Thanks...you need all the ammunition you can get wtih the loss mitigators
Thank you Bryant for this post but I was a little lost on the Third Party Removal Clause.
My understanding with short sales is that it has to be in there. I am new at short sales so I ask alot of questions.
Thanks Bryant.
BB - This was very informative. I generally work with buyers, but it is always good to see things from both sides.
Is a two bedroom, w/ a one car garage really considered functionally obsolete now? When was this house built?
Thank you, thank you for sharing this. I haven't done short sales before, but I am trying to learn all I can about them. I have a friend who is experienced with them that will help me. I am going to show this to him and see how it compares to what he is currently doing. I bet he will be pleased to have it too..
Happy Halloween!
This is written at a good time for me. Today I will be submitting all the docs for an offer on a short sale. Thanks for making it a little easier!
Hi guys. Sorry it took me so long to get back here but it's been a hectic week.
Here are the answers to your questions:
The house in the picture is NOT the one being sold. The picture house is located very close to where we used to live in Dundee. And YES those are goats.
Timothy, The 3rd party approval clause does have to be a contingency in the contract. Once that contingency has been removed it means the lender has agreed to accept the "short". The purpose of the letter and the package is to get the lender to remove the contingency so we can close the transaction. Make sense?
William, We also have a contract addendum where a time frame for the 3rd party approval can be specified. I usually use 45 days with an automatic extension of 10 more days if needed. I've yet to have one approved this quickly but at least after 45 days I can have a good feel for whether it we be approved or not. Negotiators are assigned by the lender and we really don't have a say so in the latter. However, I an stating to get a pretty good database of negotiators that I have worked with that have invited me to contact them direct when I get a deal with their lender.
rrsafety, Poinciana has a little over 70,000 people with 50% being 18 or younger. The average house has 4 bedrooms 2 baths, 2 car garage and about 1800 sq ft of living area. This house was built in 2005 but there is just not much of a market for 2/1/1 in Poinciana. It was obsolete before it was even built.
I hope everyone has a great weekend!!!!
Bryant...Great information here. Thank You for taking time to share
Bryant, Great information posted here. In a lot of areas, short sales will be around for the foreseeable future and providing educational pieces like this is certainly a help to the agent population that are in need of this.
Bryant, great letter! The more market facts and situational facts that we can present to the Seller's Lender the more likely the Lender can see the Big Picture and approve the short sale. I too provide such a letter to the Lender and I feel it can really make a difference in the outcome. It's great of you to share for others to help them in their Short Sales.
Awesome letter! Not sure I want to do short sales, but may not have a choice. Thanks.
thanks for the template and outline. great letter , I am sure this will help the bank / lenders w, if the letter gets in front of the pile before the home is foreclosed upon.
Broker Bryant, material like this is what has you listed as the 'Resident Broker in Charge' here on Active Rain. At least IMHO. :) Thanks for this letter. We've found that preparing a good packet to support a Short Sale and clearly outlining the transaction makes a difference. But, this letter is so good, that I'm bringing it to the attention of my agents. Thanks again!
Great letter, Brian -- and perfect timing! I'm trying to do a short sale with my builder client and this will be a tremendous help. Thank you!
is that a donkey in the picture!!??? OMG!
Chris the implementer
Great Job, this will be a great help for me. Thanks
Hi Bryant,
Thank you for the sample letter. I saved it st use next time I have to submit a package to a bank. I have created the habit of writing letters to be presented when I ma submitting an offer in behalf of a buyer. I believe it adds a touch a personal touch to the numbers you present. The party on the other side becomes familiar with the situation and it only helps.
Regards,
Carla Rocha
I liked your post and sample letter. I'm in the middle of a short sale now and have sworn that I will never get involved in another, but who knows... i might just end up doing this hassle filled type of contract again... Thanks for your insight..
Is that a donkey in front of that house?
Broker Bryant I have been asked to list a shortsale, my first. Your list was very helpful. I'm going to bookmark this post for easy reference. I see the donkey, but are those goats?
Thanks so much for posting this template. I've presented three viable contracts to a lender in a short sale situation with each one being denied. Have you had a lender remove the third party contingency? This letter helps me to try something different before the house goes to foreclosure.....
Well howdy folks! Another helpful hint for you is to make sure and send in ALL documents at once. Even if you have already sent over a authorization to release info letter and the seller has sent the lender their financial statement, once you have a contract send in a COMPLETE package, even if some of the information has already been sent. Your job is to make it as easy as possible for the lender to accept your contract. They are working 100s of files make yours one of the easy ones.
Bryant, I appreciate this post. Definitve list and a good one to use as a template...
Question to you - I just took a short sale listing - BUT sellers are not yet late on any payments - Both lost their jobs last month - and maybe can hold on for 60 days - maybe not - Can we approach the bank even though they're not in arrears?
Marcia, You certainly can. All banks are different. Just give them a call and see what they say. Make sure the sellers speak with an attorney. If they want to keep their house there are ways to do so.
Thanks, Bryant, for the response... We will get going in contacting the bank.
Short Sales are not rocket science! They are just a pain in the ARS! Realtionship with the servicers are not as important as people will lead you to believe. The turn over is to great to establish long term realtionships. The key is to have reputation that your sales will close...
I use NORTH WEST LOSS MITIGATION SERVICES LLC. to negotiate and facilitate all my Short Sale's because they understand each and every aspect of the transaction from title issues to the buyers's financing eligibility. NWLMS is not an investor or a want to be, NWLMS is not an Escrow company, Mortgage Broker or Real Astate Agent trying to capture your listing or suplement their income. North West Loss Mitigation Service's is a third party negotiator where negotating short sales is all they do.
I have closed over a dozen Short Sales this year. I will close another three to six by the end of the year. North West Loss Mitigation Services get's them done!!!
visit nwlossmitigation.com
Thank you , Bryant.
We closed a few short sales this Fall and have only 8 right now. A good cover letter definitely helped us get Wells Fargo to approve our last short sale in under 2 1/2 months (used to be 4-5). Now that we are using great web-based software and have a great team in place, we are cranking them out now. Thank you for your insight. I already sent your cover letter to my loss mitigators to add to their template. Our software takes care of the table of contents and all that, but the text below where you describe the housing conditions in your local area is excellent.
Thank you for sharing. Take care and God bless from Philadelphia area (City of Brotherly Shove :-)
Thanks Jasper. Glad to hear you are having success with your short sales. Please come join us at www.ShortSaleSuperStars.com We now have almost 600 members sharing info about short sales. It makes our jobs easier.