1. I understand that there is an upfront $197 charge to use the Bronze Package Lender Negotiation Services. As I understand it I would be entitled to one successful Short Sale Negotiation and this could take up to 6 months to complete. Am I correct about all of the assumptions I just mentioned?

2. Are there any back end fees that are subtracted from the sale of a Short Sale property as a result of using the Lender Negotiation Services? If so what is the fee?

3. Does the Lender Negotiation Service make Short Sale offers to Pre-foreclosure Lenders based on what I want them to offer or based on what they think should be offered?

4. Once the Lender Negotiation Service has negotiated a successful Short Sale offer how long would an investor such as myself have to close the deal?

Hi Annette,

# 1 - Yes.

# 2. - Yes. We require a $595 approval fee ONLY if we get your short sale approved. After than we negotiate with the lender to pay us all other negotiated fees.

# 3. - We usually shoot a little lower from the offer you turn into us. That helps give us some wiggle room. If we get counter offer we always contact you and ask if you are willing to up your offer. If you agree and we get the new offer accepted that is counted as an approved sale. You would then be responsible to pay the $595 fee.

# 4. - We ask the lender for 30 days. Most of the time they will grant that. Keep in mind we are not counting on you selling the short sale. We are counting on you paying for the approved short sale REGARDLESS if you find another buyer for it. We work hard and smart to get your deal approved. We cannot depend on another buyer to make your deal work. Our team is depending on deals to close. That is why we are able to offer such low entry fees and discouts via membership in ShortSaleology. As long as we continue to get deals approved we can continue to offer these low prices for our members.

I hope that helps Annette. We would love to work on some of your short sale files.

Hello Cory,

Thank you for providing me with answers to my questions about your Lender Negotiation Services. I need a little more clarification about one of things you said.

You stated that the Lender Negotiation Services doesn't count on Investors finding an End Buyer to get a deal approved. Instead you would charge Investors an additional $595 when a deal is approved.

1. So my question is once a deal is approved and an Investorsuch as myself paid Lender Negotiation Service fees of $595 when would I as an Investor get my profit out of the deal?

2. Also, who would actually sale the approved Short Sale property to another End Buyer?

The only reason a person would choose the lender negotiation service is if they ALREADY HAVE another strategy for profit such as selling at a profit to another end buyer (investor) or offering creative financing to a family or something. This is not intended for someone planning to run their own shortsale business and plan to make money off of just the shortsale fee charged to the lender. Many people have buyers lined up for their properties but they don't WANT to spend all of their time on the phone with lenders, so they get Cory or another service to do the negotiation and they get the fee while you get the profit from the sale to another buyer.

For example:

You get a house that will shortsale for $150,000, Cory get's the lender to give you that price, while you find an end buyer for $170,000. The house appraises at $220,000 so it shouldn't be a problem. You walk away with $20,000 and Cory gets the negotiating fee of 2%.

Make sense?

Actually... we have many investors that use our service just for their business.

The reason we are able to keep our fees low is due to membership. It really helps us to have educated investors submit deals. That is why I give a 50% discount for anyone that order my home study system. It saves time because all we need to do is leverage our relationship with the lender to help speed up the negotiation process instead of teach the investor more basics of short sales.

You are ONLY responsible to pay the submission fee package price. The only other fee you pay would be based on our approval for your file. The other fees we get the lender to pay us based on our negotiations with them. Sometimes (often) we have already dealt with the lender and we get our fees paid. We have team that is driven to get your deal approved because all of us benefit from it.

As long as we continue to have more members join ShortSaleology and purchase lender packages our business model will be successful.

I hope that helps.

Thank you all for the replies to my post here.

I have a good understanding of how the Lender Negotiation Services work now.

I'm enjoying this forum immensely.

Yes, I suppose someone could create a business from partnering with you on shortsales but I think the previous question was geared more toward, "what end buyer and how do I get paid if you're taking the LM fee?". Obviously you can charge more upfront than the $197 but this is getting more difficult for people to afford with the economy the way it is. I've seen as high as $1400. It's a personal and business choice. So no, that's not the ONLY reason to outsource. I guess if I could choose I'd rather get a buyer's list and get paid $20,000 on a double close than $200-$300 on 1 shortsale. But again that's personal preference. It can be done. The important thing is you get out there & do something!! Don't spend too long analyzing or you'll be in the same place next year!

Yup...be a servant...

Some fees are going as high as $3-5K and then taking a percentage of your profits.

Cory,

Dalene said something that confused me in the thread. She said there is a 2% fee for the negotiations also? I read that your negotiators usually can get that from the lenders...? If not, then is it charged to the investor? I'm assuming it is, but want to clarify. Thank you.

IT would sure help if it spelled out the terms on the page where you order things so we don't have to go searching threads. Also for the Personal Closing Coordinator feature. What's that about?