Software Features

BROKERAGE SERVICES

Software Features

Property Data

Research properties and their owners, compile lists, and more.

MLS Comps

A multiple-listing service comparable tool.

Listings

List your properties with Propelio Realty for incredible savings.

Short Sales

If you have an underwater property, our experts can help.

For Education

Blog

Interesting and valuable articles from Propelio and the industry.

Academy

Real Estate education platform led by a team of professionals.

Propelio TV

A channel that gives daily updated archive of our live video.

Discover Propelio

About Us

Get to know Propelio better – explore our story and mission.

Map Coverage and Brokers

Shows MLS coverage and broker transactions in your state.

Referral Program

Share Propelio with friends and family to earn exciting rewards

Template is not defined.
Play Video

Mastering Short Sales: Expert Tips from Melody Medley

Good morning, everyone! Today, I have the pleasure of introducing Melody Medley, also known as the queen of short sales. Melody has handled numerous short sale transactions with us, and I believe anyone using Propelio should also be familiar with Melody.

What is a Short Sale?

A short sale occurs when a homeowner is upside down on their mortgage, meaning they owe more than the property’s current value. As an investor, you might refer to this as negative equity. In these cases, the sellers are usually too far behind on payments to consider traditional solutions. The last step before foreclosure is often a short sale. Melody negotiates with the seller’s lender for a shorter payoff on the mortgage, effectively helping to avoid foreclosure.

How to Bring a Short Sale Lead

If you find a homeowner who owes more than their home is worth, you should consider bringing the short sale lead to Melody. First, make sure the lead is genuinely upside down and that there are no other viable solutions. If it’s a true short sale situation, inform the seller that Melody or her partner, David, will be in touch. Email Melody the details, including mortgage payoff amounts and any foreclosure dates, if available.

Once contacted, Melody will walk the homeowner through the short sale process. After the seller agrees, she will ask you, the investor, for an offer to start the short sale. Melody aims to secure the property for you through the short sale process, especially if the property needs significant repairs.

Expectations and Success Rates

Expectations are crucial when dealing with short sales. If you send 15 to 20 leads, you might purchase one through a short sale. This isn’t a reflection of Melody’s negotiation skills but the reality of how banks operate. Banks are less likely to discount properties in excellent condition below retail value.

Lender Types and Their Impact

The success rate of acquiring a property through a short sale can depend on the lender and the type of loan. Conventional loans serviced by lenders like Ocwen, SPS, and Chase are often easier to negotiate than FHA loans, which have stricter guidelines and less flexibility.

Why Conventional Loans Are Easier

Conventional loans are usually backed by private investors who might be more reasonable when it comes to taking a loss. On the other hand, FHA loans must follow HUD guidelines, making the process more complex and challenging.

The Role of Appraisals and BPOs

Both conventional and FHA lenders will order appraisals to determine the current “as-is” value of the property. It’s essential to meet the appraiser or broker’s price opinion (BPO) agent at the property with repair bids and other relevant information, like crime charts or neighborhood data. This approach offers a detailed view of the property’s condition, making it easier to negotiate a fair price.

Handling the Paperwork and Process

Behind the scenes, Melody is in constant communication with the lenders, submitting financials and following up to keep the process moving. This can take several months, and the outcome depends on various lender-specific factors. In some cases, value disputes can further delay the process.

Working with Different Liens

Short sales often involve negotiating junior liens, such as second mortgages, HOA fees, or city liens. These must be cleared before closing. For example, second lien holders will often accept a much lower payoff than the original amount owed, considering the risk of getting wiped out in foreclosure.

Real-Life Short Sale Successes

Melody has numerous success stories. One notable case involved a property in Dallas initially valued at $425,000. Through savvy negotiation and value disputes, Melody managed to bring the price down to $325,000, resulting in a win-win for both the investor and the seller.

Conclusion

Short sales can be a complex yet rewarding process when handled by an expert like Melody Medley. Her vast experience and proven track record make her an invaluable asset to Propelio users. By understanding the intricacies of short sales and leveraging Melody’s expertise, investors can navigate these challenging transactions successfully. 

Remember, patience and clear communication are key. Reach out to Melody with your leads, and she will guide you and the homeowners through the short sale process, maximizing the chances of a successful outcome.

Get started with Propelio and unlock all the tools you need to succeed in real estate. Sign up now for a 14-day FREE trial: Start Free Trial

show less

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Episodes

Play Video
3 minutes

Many have asked how I climbed from wholesaling five years ago to flipping...

Play Video
45 minutes

Welcome to the Real Estate Business Mastery Show! In today’s episode, we recap...

Play Video
62 minutes

Welcome to another insightful episode of the Real Estate Power Hour. Today, we...

Play Video
49 minutes

Good morning, everyone! I’m Robert Kelley, and today I’ve got Kristen Gary Saad...

Play Video
47 minutes

Hey everyone, I’m Ryan from Propelio. Today, we talked with Lolita Shira, also...

Play Video
2 minutes

Do you remember the first time you tried to solve a complex problem?...

Play Video
50 minutes

Understanding the real estate market is crucial for investors looking to thrive and...

Play Video
5 minutes

Hey folks, Blade Johnson here from Finishing Touches in Fort Worth, Texas. Today,...

Play Video
28 minutes

In today’s fast-paced world, staying on top of your health can be a...

Play Video
44 minutes

Hey everyone, good morning! I’m Ryan with Propelio, and today in the studio,...

<span data-metadata=""><span data-buffer="">Propelio TV

Do you love learning from your favorite hosts? Subscribe and we will notify you when we release new shows.