In order to succeed in short sale work, it requires good negotiating skills and creativity. Goldie Sommer must convince the lender that her client and the bank have a mutual interest in selling this property in short sale. There have been times when she has been able to get relocation or concession fees to her clients, paid by the bank.
Her largest short sale involved a mansion where the outstanding loan balance was $5.5 Million and the sellers were losing the home due to illness and reduction of income. Goldie Sommer successfully negotiated a sales price of $1.25 Million and the lender waived the deficiency balance for the sellers.
After 2008, when the housing market in the United States collapsed, Goldie Sommer has worked with a lot of homeowners who faced foreclosures of their properties.
Many homeowners who are facing foreclosure are not even willing to admit that they have a problem. They are looking to borrow more money to pay for the loans that they already have, which is rarely a sound strategy. The only scenario in which borrowing more money does work is when old payments are rolled back into a new loan with lower payments. Refinancing loans with delinquencies is often very expensive and comes with high-interest rates and processing fees.
Generally speaking, trying to help those who think that they don’t need help is often impossible. This is why you do not want to spend too much time talking to people who are in denial about their problems.
If someone admits that they have a problem, start with explaining the consequences of a foreclosure. Outline how a poor credit score can lead to higher interest rates in the future, how they will lose their equity and have to move out of the home eventually.
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Most sellers, even in distress, expect you to come to their home. To test their motivation and willingness to negotiate, you can ask them to come to you. Tell them to bring all their house-related paperwork, including title insurance, loan documents, closing documents, and any refinancing correspondence. A review of these documents will give you the information you need to make a decision about being interested in getting involved with the homeowner and the situation. If it doesn’t, get help from an attorney like Goldie Sommer.
Goldie Sommer is an attorney and a licensed real estate agent, which means that she understands real estate on a deep level.
Most real estate contracts are associated with closing costs such as the tax to record the deed or note, title insurance, appraisals, mortgage closing fees, and so on. Start with finding out about the legal requirements in your state. Next, find out if there are customs in your area as to how closing costs are divided between the seller and the buyer. The buyer is often required to pay a lot of the fees, but they are negotiable and can add up to a substantial amount.
Just as a buyer can ask for a credit associated with necessary future repairs of the property, the buyer can also inquire about a credit towards the closing costs of a new mortgage.
Your lender will give you a Good Faith Estimate as to your closing costs and your attorney should go over them with you. Goldie Sommer reviews all fees that the lender charges with her clients.
Also read: Goldie Sommer – Dealing with Distressed Homeowners
Goldie Sommer has been helping her clients buy and sell homes in New Jersey for several decades.
When you buy commercial real estate, you are usually dealing with investors who are likely to be experienced negotiators. They probably also have their sets of parameters that make deals worthy. If a deal isn’t of interest to them, they can pass or wait patiently until the conditions of the deal change and you reduce the price. This is now how things work with buying and selling houses. Instead of very experienced negotiators, you will be typically dealing with homeowners motivated to sell their homes quickly. If a homeowner has plenty of time, he or she may wait for a full-price offer. However, you will also meet people that want to sell in a hurry, which will usually lead to a discount in price. The lesson here is also that you never want to be in a position when you need to sell a house in a hurry. Also, if you are selling a home, do your best to sell it to the people that are buying it to live in it. You want to find people that are looking for a home for themselves and really like your property because this is the scenario in which buyers will most likely be willing to pay the full asking price.
Finally, when you are selling a single-family home to a buyer, the buyer will probably be able to get a loan for nearly full purchase price. FHA loans can fund up to 96 1/2 % of the purchase price in today’s market.
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This is not how things work with commercial real estate. Because of the increased risks, banks usually finance up to sixty or seventy percent of the asking price. They want to see buyers invest their own money. This means that a deal may fall through because the buyer is not able to get sufficient financing, which is something Goldie Sommer saw happen many times during her career.