Tuesday, December 15, 2015

Why Agents Shouldn't Shy Away from Short Sales

Taking on a Short Sale File: Why Agents Shouldn’t Shy Away

Many real estate agents would say that they try to avoid taking on short sale listings due to the time, energy and potential denial of approval from the lender. They are afraid that their commission from the sale would be lowered or denied after the hard work they put in. Due to the uncertainty in the time frame of a short sale file to get qualified, approved and buyer offers in, an agents time can become consumed if working alone.

One thing that these agents don’t consider; why are you taking it on alone?

The answer is: they shouldn’t.

Kayser works with agents (buyer & seller) on a daily basis to ensure that homeowners in short sale situations are covered completely from beginning to end. Starting with getting qualified, approved and finally closed, our file managers work with the lenders directly to make sure that this process goes smoothly and that any issues during are resolved as soon as possible. The agent in this situation does exactly what they do on their regular listings; they get an offer on the property. During this process, Kayser does not take any fees out of the agent’s commission at closing and agents are recording full commissions on closed files.

Working as a team instead of shying away from these files, agents can be a homeowner’s hero and help them gracefully out of a difficult situation.



The choice of a lawyer is an important decision and should not be based solely upon advertisements This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

Tuesday, December 1, 2015

The Counter Offer

Be ready for counter-offers and respond with caution

Although lender counter-offers are not part of every short sale, they do come into play and must be handled properly. There are four main possibilities in most lenders’ counter-offers:
  •      Lender may counter for a higher offer from the buyer
  •     Lender may request the seller make a cash contribution at closing
  •     Lender may request the seller to sign a promissory note at closing
  •     Lender may counter to have the closing costs adjusted

The fourth of these will be non-negotiable in many cases as lenders generally have set limits on closing costs.

However, the first three are crucial and be negotiated carefully to ensure the best outcome for the seller.

If the lender counters the offer from the buyer, there are two crucial steps that the seller’s side must take:
  • The seller must first go back to the buyer and request a higher offer…any increase in the buyer’s offer improves the chance of approval, even if it does not fully meet the counter from the bank.
  • If the buyer is not willing to increase the offer to the full counter made by the bank, then the seller’s side will have to bridge the gap by challenging the lender’s value.
If the lender counters with a request for a cash contribution and promissory note, there are two crucial steps that the seller’s side must take:
  • The seller must not panic and accept the counter just to get the deal done – the lender’s request for a cash contribution or a promissory note is very rarely a “take-it-or-leave-it” proposition
  • The seller must then craft a sound response explaining that the cash contribution or payments on a promissory note are simply unaffordable. The response should be supplemented with supporting documentation (such as pay-stubs and list of monthly expenses).


Since 2013, requests for cash and/or promissory notes have become far more common, but remember it does NOT necessarily have to be accepted to complete the short sale. These requests from the lender are simply a counter-offer and your short sale can be approved even if you reject their request to pay any cash and sign a promissory note. However, please remember that this needs to be skillfully negotiated for the most favorable outcome for you as the seller. And as always, each case is different, so make sure you are represented by an experienced professional.



The choice of a lawyer is an important decision and should not be based solely upon advertisements This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.