Rounding out a great week of matter on bank counter offers, there are still some good stories to tell. Kevin and Fred have not been very excitable this week, but they are on leave in Italy. So, we ought to all give them a break. As is habit with Friday, it is time for a narrative.
Recently there was a situation with Aurora Loan Services. Kevin and Fred knew the BPO on this short sale because they had a earlier offer that was approved, but the buyer cancelled. So, Kevin and Fred got a new offer with all of the usual fees and closing costs. Nonetheless, the negotiator told the Group 46:10 workers that the closing costs needed to be removed. Initially, Kevin and Fred weren’t sure if this was a mitigation counter offer or a collection counter offer. Still, they eventually learned that the counter offer was concerning net proceeds. Through a little detailed paperwork, they were able to reduce the closing costs because of a few taxes that had previously been paid.
Essentially, Kevin and Fred just wanted to know what the lender needed to recoup in net proceeds with this loan.
Herein lies the premise behind the whole week of conversations on counter offers. The negotiator let Kevin and Fred know that she needed to net $266,000 to get this agreement done. As soon as all entities had the same information, they could all work to get to the same point and complete the agreement.
The end result is that the negotiator was trying to net about 85% on the deal and there was a second note that wanted a few thousand dollars. Basically, when everybody shares what they need from a deal, the deal can get done. Net proceeds are the lone thing that matters!
Get powered up by Kevin and Fred at Short Sale Power Hour by the Short Sale Specialists of Arizona
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