Bellevue WA â€“ If you are doing short sales, then you must learn how to escalate a file. Hereâ€™s why.
What do you do when the house isnâ€™t selling for any more money, but the bank keeps on rejecting the offers? You can give up, but then the seller loses the house to foreclosure.
Ouch!Â Why not escalate the file and get it approved?Â Hereâ€™s an example of how it worked for the Stop Foreclosure Institute.
We had a house on the market for 4 months. We started the price at 200k and slowly brought it down to $169,900. We finally got an offer for $159,000.
The lender thought the house was worth $195,000. We knew that they wouldnâ€™t accept the offer because it was less than their value.
We knew this investorâ€™s guidelines and that the current offer at $159,000 didnâ€™t have a shot at getting accepted.
In order to get this file approved, we had two things to do.
1. Convince the lender to get a new, more accurate valuation.
2. Escalate the file.
To handle Part 1, we sent the short sale negotiator our own Comparable Market Analysis. We included the Pending homes for sale and the Competing homes for sale.
We explained that their valuation was inaccurate and that they need to order another one. (If your data is good, then most of the time they will order a new valuation.)
Then, we asked for their supervisorâ€™s contact info.Â (Remember, most short sale communications are thru e-mail.)
Two-thirds of the time they will e-mail back the supervisorâ€™s info. The other one-third of the time they will just start doing a better job on the file. Either way we have accomplished our goal.
In this case they started doing a much better job on the file. The negotiator ordered a new valuation.
If the new valuation comes back within range, then they will approve the file and we can close. On the subject house, the new valuation came back with the proper value.
We received a short sale approval and closed the sale a month later.
Now, there are a few problems you may run into trying to escalate a file.Â Sometimes the negotiator wonâ€™t give you their supervisorâ€™s.
And they still wonâ€™t order a new valuation or help you out. So, youâ€™re at a dead end. ClickÂ HEREÂ to continue reading.