An Open Letter to Asset Managers

Dear Mortgage Company

I thought I would write an open letter to all entities who are holding “non-performing assets.”

I really need your help to solve my dilemma.

Here is the situation.

I have a listing where the mortgage has not been paid in a year. The house has been to the sheriff’s sale with no buyer so the mortgage company retains ownership.

The property was listed 8/25/2009 at $175,000. It did not sell at that price so it was eventual reduced to $155,000 and the listing expired at that price 2/25/2010. The property was re-listed on 2/25/2010 at $155,000 but did not sell at that price so it was finally reduced to $140,000 and the listing expired at that price on 8/25/2010.

I listed the property on 9/9/2010 at $140,000. We received an offer on 9/27/2010 for $126,000 with the contingency the seller pay $5,000 in closing costs and give a $4,500 flooring allowance.

For some reason, the mortgage company did not like that offer and responded with “After reviewing your presented offer on the above referenced file for short sale, we unfortunately cannot accept the buyers’ offer of $126,000.00. However, if you can present us with a counter offer that will reflect a net of $141,500.00 or greater on the property, I can continue with the short sale process.” This meant a counter offer to the buyer of about $165,000. The buyer rescinded their offer.

We received a new offer on 11/28/2010 for $130,000, “as-is” but with the seller paying $5,100 in closing costs for the buyer. The response from the mortgage company for this offer was based on the estimated net to seller and on 12/3/2010 they said, “After reviewing your presented offer on the above referenced file for short sale, we unfortunately cannot accept the buyers’ offer of $113,718.00. However, if you can present us with a counter offer that will reflect a net of $142,000.00 or greater on the property, I can continue with the short sale process.” This counter offer to the buyer would be in the amount of about $160,000.

A few days later I received an email which contained the information “The HUD amount submitted does not meet the investor guidelines and I have also attached the counter offer info.”

Here is where I desperately need the help of the non-performing asset managers. Would you please, PLEASE, send me those investor guidelines so I can provide them to the buyer and they will magically say, “Oh, I did not understand the guidelines. Having now seen the guidelines I will gladly increase my offer by $30,000 and take the property ‘as-is’!”

These transactions should be a team effort. We Realtors want to sell houses and I am sure you want to get rid of your non-performing assets, so the sooner you share these magical guidelines the sooner we can accomplish our goals. Those considering the purchase of these non-performing properties will also benefit because with those guidelines they will begin to completely understand why they should be willing to pay a premium price for an over encumbered property. I am sure you cannot even imagine how much more successful we will all be, and with considerably less effort, once these guidelines are made public.

Please contact me with that information as soon as possible.

Wayne Barnes
www.come2ok.com
Broker Associate
ERA John Hausam, Realtors
Tulsa, OK

One Reply to “An Open Letter to Asset Managers”

  1. You have to wonder when told that an offer didn’t meet the investor guidelines. Was the offer ever submitted to the investor, or did they reject it due to a blanket policy put forth by the investor? At the end of the day I believe that any offer that doesn’t meet “guidelines” should be verified to have been actually rejected by the investor, because I quite frankly don’t always trust that the loss mitigation rep ever put the deal forward.

    The problem is that quite often the deal won’t meet “guidelines” but, the investor may be willing to look at it if their bottom line is still better than what’s projected should a foreclosure happen.

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