I was recently involved in a very unpleasant situation. I hired a carpet and tile cleaning company to come into my home and clean things up a bit. Although we had never used this particular company before, they came recommended. They come in; they quote the price; they get started. The project takes longer then they anticipate, and they will need to finish up the following day. However, since the company applied their chemicals at the beginning of the project, those chemicals “sat” on the flooring for six or eight hours and, as a result, created thousands of dollars of damage.
There’s a lot more to this story—much more drama than you really need to hear. But, to “fix” the problem, to deal with insurance companies, to get bids, and contact attorneys in order to confirm that everything is done in our best interest takes time, attention to detail, determination—lots and lots of tenacity.
Tenacity in Real Estate
There are many situations in real estate and in working with distressed properties that also require a significant amount of tenacity in real estate. Here are three situations where you need to be determined and persistent in order to get the job done right—when it’s ‘game on’:
- When You Must Make a Value Dispute. After the short sale lender sends a local Broker to conduct a Broker Price Opinion (BPO), the short sale lender may advise you that your buyer’s offer does not align with the property value; they are seeking a higher offer. If you disagree, you will need to conduct a value dispute. Drafting the value dispute, presenting it to the lender, and making a compelling argument (often five or ten times in one week) is often what it takes in order to get your short sale approved.
- When the Second Lien Holder Holds Out for More Money. In a short sale that involves more than one lien, second lien holders are generally in a situation where they must accept what the first lien holder will offer them to remove their lien. That is because it is often better to accept an offer of $6000.00 than receive nothing in foreclosure. However, there are situations where the second lien holder will not agree and will hold out for more money. In tough situations like this one, you need to persist until you can convince a representative to agree with the terms offered.
- When you Cannot Get Past the Gatekeepers. At many of the short sale lenders, there are customer service representatives that answer the phone, and it is tough to get past those representatives in order to speak with a decision maker. You must be clever, creative, and very tenacious if you want the opportunity to speak directly with an individual that really understands your client’s situation.
Short sales are tough. Getting your message heard and speaking with decision makers are possibly the most challenging parts of the transaction. But, if you want to be successful and close lots and lots of deals, you cannot give up. You need to be dedicated, patient and determined. Getting a short sale approved is almost like running a marathon. It has a lot of ups and downs. But it is awesome when you get to the finish line!