Foreclosure Brokers LLC

We coordinate with you, the sellers, the lenders and your title company to get short sales closed.  Our role is to educate the sellers about the foreclosure process, negotiate the offer(s) with their lenders and finally provide the revised payoffs to the title company so the closing can go smoothly.  Sometimes buyers and selling brokers have questions about the process and the status of their offer which we are always happy to answer and help guide all parties through the process.

Why can’t I do this myself?

You certainly can, however, many brokers use us as a transaction coordinator so they can focus working with buyers, sellers and going to closings rather than spending their time on hold and going through the “brain damage” short sales can bring.  Our negotiators do this full time and present professional short sale packages that rise to the “top of the pile” and get the attention of the loss mitigation departments.

How do you get paid?

We are hired directly by the sellers for 2% of the final purchase price.  This fee is split between both buyer and seller and paid on the final settlement statement.  In some cases the foreclosing lender will not allow our fee to be paid by the seller.  If this should arise, we split the seller's portion with both brokers (1/3% each) to contribute to cover the seller's share of our fee.  As of right now, there are no file open or administration fees due up-front and just like you we only get paid if we are successful. 

What happens to my commissions?

Frustratingly, foreclosing lenders commonly do not allow a full 6% commission to be paid.  Although our negotiators make every effort to preserve the normal and customary commission structure, lenders typically restrict them as follows: 5% when there are two separate brokerage offices involved in the transaction – one listing office, another selling office; 4% when there are two separate agents within one office, one listing agent, another selling agent; and 3% when the listing agent finds and sells to his/her own buyer. 

What is the process and the timeframe?

We are hired directly by the seller and begin coordinating the short sale immediately.  Typically, lenders will not “open the file” until they receive a signed offer from a prospective buyer.  Once an offer is presented to the bank(s) it can take between 40-75+ days for the final approval to be issued at which time the buyer can complete their due diligence and move towards closing.  Most short sales require the buyer to close within 30 days of approval.  If a foreclosure sale date is approaching within this timeframe the foreclosing lender will most likely postpone the sale date and allow enough time to close.

How can the seller sign multiple contracts and still be marketing actively?

Because the foreclosing lender will only approve one contract and the seller's goal is to stop their foreclosure, we encourage a multiple offer scenario.  If the property were to go "under contract" as soon as the 1st offer is received, the seller would be precluding any other potential offers that may be more appealing to the foreclosing lender and may have a better chance to get approved.  By allowing multiple offers, the seller maintains the best chance to solve their problem and get the best price.  Lenders will also only approve signed contracts.

How can the lender modify the contract when they are not a party to it?

The foreclosing lenders commonly issue approvals that are out-of-touch with the contract or reality.  The approvals are based on their investor's or insurer's standards and policies and the contract may or may not conform.  Many lenders have a "my way or the highway" mentality which forces buyer and seller to amend the contract once approvals are issued or the lender will not allow the closing.  The most common examples of this are deadlines, commissions and the closing date.

Do you take any and every case?

Our minimum requirements are:

1. Your sellers must be at least 30 days late and not planning to make any more payments.
2. Your sellers must have no immediate plans to file bankruptcy and are not in active bankruptcy.
3. Your sellers are motivated to stop their foreclosure and are willing to work with us.
4. There are at least 75 days before the foreclosure sale (timeframes shorter that 75 days will be reviewed on a case-by-case basis and are only typically successful if you already received an offer).
5. Any buyer coming forward with an offer must understand our involvement and must be okay with paying our fee as part of the transaction.
6. Contracts cannot be contingent on another sale or have closings further out than 30 days from lender acceptance. 
7. Contracts cannot be assignable in any way.

What more do I need to know?

• We find we have the best success if either you have plenty of time to market the property or already have an offer. 

• Because of the potentially long processing timeframe, it is important for buyers to understand that patience is a crucial part of getting their offer accepted.

• Research the encumbrances for your property.  If the property is encumbered by liens in addition to a 1^st and 2^nd mortgage, we will review it as a case-by-case basis.  In some cases we are able to remove or discount IRS liens and judgments but too many liens can cause logistical problems.

• Because we contract directly with the seller, we need to speak directly with them throughout the process to keep them informed.

• We are unable to guarantee any specific result, but since we don’t get paid until closing just like you, we are very persistent.

Do you pay referral fees for short sale referrals?

Yes!  If you have short sale referral, we will pay you 20% of the listing commission at closing.  We will either handle this in house or pass the referral to another broker who you can collect the referral fee from directly.  We also have a Qualified Lead Program where depending on the type of referral, we may be able to pay you an additional $200 at the time the sellers sign up with us.

Do you have any type of system to help me manage my transactions with you?

Yes!  We use ManageMyShortSale.com, a great online short sale management tool that notifies you and anyone else you choose (such as a buyer, broker, seller, closer or transaction coordinator) every time a change or a note is made on your property.  It is an effortless way to communicate the status to everyone involved while managing your time effectively.  This feature is only available for our preferred brokers, so if you are interested in learning more or joining our team, give us a call.

How can I begin working with your office to maximize my time?

We are constantly looking for new additions to our team of preferred brokers.  If you are interested in having us work your short sales, please give us a call  or send a quick email to PreferredBrokers@Foreclosure-Brokers.com.  Please read through this site in its entirety because it answers many questions and you can have the greatest understanding of our systems prior to contacting us.

Call us to learn more or to inquire on your client's file - 303-399-7484.