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559 S. Washington Ave., Kankakee,IL 60901

P.815.929.9258 P.815.929.9200

walter@waltersanford.com

"Thank you for another great conference. Walter Sanford was energetic and delivered some great information as well." Carla Rigsby CENTURY 21 Really Group

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YOUR SHORT SALE COUNTEROFFER COVER LETTER March 26th, 2008 | Posted in General Real Estate

You can no longer accept bad short sale contracts on your listings. Buyers that back out, don’t qualify, or loose interest. All the while you are negotiating with the banks using valuable energy and resources.

I attach the following cover letter to every counter offer that I tender to cooperative agents that are handling the buyer.

THANK YOU SO MUCH FOR CONSIDERING MY SELLERS HOME! AS YOU KNOW THIS IS A SHORT PAYOFF WHICH MEANS THERE WILL NOT BE ENOUGH NET TO PAY OFF THE LENDERS IN FULL. IT TAKES A SUBSTANTIAL AMOUNT OF RESOURCES AND TIME TO BECOME SUCCESSFUL ON A SHORT EQUITY PROPERTY SUCH AS THIS. YOU MIGHT QUESTION THE WISDOM OF SOME OF THE ITEMS THAT I HAVE COUNTERED, HOWEVER, IT IS IN ALL OF OUR BEST INTERESTS.

IF I HAVE COUNTERED ON PRICE. Please understand that I try to price the property at the most competitive price. I believe there is no better opportunity holding all things equal. Too low of a price just solicits a non responsive approach from the lender. The right bargain price gets an acceptance.

IF I HAVE COUNTERED ON THE DEPOSIT. Please know that a successful short sale negotiation may take as many as 200 phone calls, 50 letters and up to four months of time. In return for recieving the lowest price for the asset, the buyer must prove that they are committed to closing. This will motivate myself and lender to perform. The buyer without any “skin in the game” will not be treated as a serious buyer.

IF I HAVE COUNTERED ON THE AFFILIATES. Please be aware that the listing agent will be doing all the work in getting this transaction accepted. I have relationships that result in delegated duties to these affiliates. My title company has already done a preliminary title report to make sure there are no other liens that have to come off prior to close. The termite company has already done a quick walk through to make sure that won’t be a sticking point. The inspector has done the same thing to make sure their are no “deal killing” problems with the property. The escrow company has been selected for their experience in closing short sales. I have this short sale team in place for one reason. I achieve the sellers goal of getting out of the property prior to a forclosure and the buyer’s goal of getting their dream property at a bargain price. Also, I will disclose any and all of my discoveries to the buyer and will also use them as negotiating gambits with the short sale lender.

IF I HAVE COUNTERED REQUIRING A DOUBLE LOAN APPLICATION. This has been done soley to guarantee a closing from a buyer’s lender once we have approval from the short sale lender. The benefit to the buyer is that it requires no extra work, no extra fees, and the possiblity that if the lender that I am affiliated with actually does the loan, there will be a guaranteed savings to the buyer of at least a $1,000.00 of their lender’s costs over the lender you have mentioned in your offer. From a selfish standpoint, I don’t want to negotiate any more short sales without guaranteed financing to close the transaction.

IF I HAVE COUNTERED WITH AN EXTENSION ON THE CLOSING PERIOD. Please understand that I have closed short sales in three weeks and four months. If a buyer is not willing to wait four months for resolution, then there is little value to spend the resources to become successful in the negotiations.

I HOPE YOU APPRECIATE OUR PROFESSIONAL APPROACH TO OBTAINING THE GOAL OF A CLOSING AND HOPE FOR YOUR COOPERATION.

_______________________________________________________
LISTING AGENT

Hey you guys, quit taking stupid short sale contracts on your listings.

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