WHY YOU NEED A GOOD NEGOTIATOR

Posted on March 9th, 2010 in Short Selling/Buying.

Some of my clients ask why they need a negotiator? Sometimes the attorney does not know the “angles” a Bank is trying to use to squeeze the Seller and angle on our client…This is a very specialized field… and our job is to get out and sell.. .and back up the negotiator with constant market updates for value… Here is an example of what the negotiator does.. they prepare HUDS with the help of the seller’s attorney… this is a communication from one of our negotiators on a recent deal.. I thought this clip would demonstrate the point… Phil

EXAMPLE OF WHY WE NEED TO USE A NEGOTIATOR: This is a critique to an already  prepared HUD 1 given to use by a attorney and Chicago Title.

I did receive your HUD, and was wondering if you could make some changes.

Note that some of these items are for negotiation purposes and will probably be changed during the negotiations.

1)     I prefer HUD’s in 8 ½” by 11” format. The HUD you sent me was appeared to be on 8 ½” by 14” paper. It was cropped, so I could not see part of the HUD.

2)     Line 603 needs to be zero. This is accomplished by putting the amount instead on Line 504.

3)     Lines 504 and 505 should show payoffs to Citi. Line 505 should be $2,500.

4)     Remove all items from the buyers side. The HUD should only show the sellers credits and charges.

5)     In Box B (Type of Loan), Box 1 (FHA) should be checked and all other boxes left blank.

6)     Delete line 506.

7)     Line 508 should say “Buyer’s closing cost credit”.

8)     Lines 700, 701, and 702 should show 7% commission.

9)     Line 1304 should show a “Short Sale processing fee to  ” of $4,000.

10)  Page 4 of the contract clearly states that the seller is to pay title and survey expenses. The HUD should reflect this.

11)  The HUD was sent to me in image (scanned) format. I prefer to have a HUD in a form that I can copy and paste from.

12)  Please double check to make sure that all of the sellers charges are listed on the HUD.

Keep in mind that we can always remove or reduce a charge from the HUD (such as title fees, liens, etc…) later without problem. Adding charges after the fact is a different story. Generally, the Bank will refuse to pay the charge, even if it is a legitimate mistake (like missing some taxes). They will demand that somebody else (such as the realtor or buyer) pay the additional charge.

Let me know if you have any questions.