Short Sale Tip #10 Overcoming Objections with the Homeowner
February 29, 2008
Short Sale Tip #12 Overcoming Objections with the Homeowner Part 1
We are getting many questions from our attendees as to how to overcome objections with the homeowner, but we are surprisingly getting MORE questions as to how to overcome objections from the inexperienced or uneducated agent representing the homeowner…isn’t that a twist?
Too many Homeowners are not only misguided and made hysterical from the media influences that they are pummeled with, then the situation is compounded by the Homeowner having an agent who is totally misinformed and winging it.
Here are some of the objections we are hearing and some ways you can overcome those objections…with either the Seller or the agent:
1. Deed-in-lieu-of Foreclosure: The ole..I am just going to give the property to the bank routine
Objection Defense: Well Mr. Uninformed (insert Seller name or Agent Name)…that may work for you but there will be some work for you to get them to accept the deed and from my experience lenders rarely accept them…do you understand that banks are not in the real estate business and that their business is lending money.
Let’s see if you would even qualify for a deed in lieu of foreclosure avoidance option as banks are somewhat hesitant to take a deed back…let’s look at the criteria most banks look at:
a.your home must be on the market at current market value
b. the home must be uninhabited to complete the process (meaning you have to be out)
c. deed-in-lieu of foreclosure, if not negotiated, drafted and recorded correctly is just this side of bankruptcy, and it very well could drop your credit score by a hundred points or more, depending where it is in the process when the bank forecloses. It also can and most likely still show up on your credit as a foreclosure.
d. most banks will not accept the deed in lieu of if you have subordinate liens (2nd mortgage) that they otherwise would have foreclosed off. So if you have a second mortgage you could very well not qualify.
This pretty much is the poison pill to the DILF
e. and this may be the most important criteria…the bank will usually want you to be current on your payments so a deed in lieu of is great for those in the early stage of foreclosure but not when you are 3+ months behind
2. Short Sale Will Leave Me with a Big Tax Bill so I will need to sell it for full value or just let it go to foreclosure.
Objection Defense: What??? Let it go to foreclosure??? do you realize your credit will be ruined and the bank may come after you in the future for a deficiency judgment (FYI…we go over this in class), why would you do that if we can save your credit and show you how to avoid being hit by the possible tax consequences. (This is especially important with the new law removing the liability of the 1099 on primary residential property.
Mr. Seller..If I can show you how to avoid the dreaded tax liability you fear, would you be willing to let us go through with a short sale proposal to your lender?
Objection eliminated! Now you just have to explain in detail to Mr. Seller how he can avoid his tax liability. Well..you are not an accountant so you can’t!
However, you have taken our class so you have been given all of the documents and tools necessary to determine the likelihood of Mr. Seller being hit with a large tax liability.
Here’s a free hint…If Mr. Seller qualifies for a short sale, then it is highly likely that he will be able to avoid the tax liability associated with a short sale.
Once you know what kind of Seller qualifies for a short sale, you will know what kind of Seller can avoid the 1099 issue.
We don’t engage in “water cooler discussions”. We will show you, despite what you may have been told in the office, just how a homeowner can avoid the 1099 induced tax liability.
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If you are ready to take the next step in your real estate career and want to learn how to profit from foreclosures, make sure you enroll in one of our upcoming Pre-Foreclosure / Short Sale Seminar Workshops.
You will learn how the foreclosure process works and how you can profit from this growing market. Instead of thinking that the market has turned against you, get educated and learn how to take advantage of this unbelievable opportunity for the educated real estate industry professional.
Ultimate Pre-Foreclosure & Short Sale Seminar Dates (more to be added)Ultimate Pre-Foreclosure & Short Sale Seminars (online version) : Learn the “Art of The Short Sale” from the quiet comfort of your own home or office. (coming soon)March 8, 2008 - Miami, Florida - $250.00 discounted to $195.00 if you register prior to March 1, 2008 - REGISTER NOWMarch 15, 2008 - West Palm Beach, Florida - $250.00 discounted to $195.00 if you register prior to March 8, 2008 - REGISTER NOW
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If you feel that you can become a short sale expert by taking a rip-off imitation seminar or a free board seminar, then you are really missing the boat on short sale opportunities!
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