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BrokerIPTV: Today, we are talking with Sean Zweifel. He is the owner of Denver Home Rescue and Sean, thanks for being with us.

Sean Zweifel: Nice to meet you.

BrokerIPTV: In a previous segment, we were talking about short sales and the advantages and disadvantages of doing them as a seller.

Sean Zweifel: Correct.

BrokerIPTV: I want to tackle the buying side right now. Are short sales good for a prospective buyer and why? <read more>

Sean Zweifel: They are good because what you can do is do your due diligence, again its a normal sale, and so if you are going to put an offer on the sale, what you can do is make sure that offer is good and its a good deal for you. The back, the problem with that is again the banks that we just discussed are overwhelmed. If you have the time to wait for it, 60 to 80 days to get it closed at that price, then it's a good deal.

BrokerIPTV: All right. What about that bank that just doesn't respond to your offer?

Sean Zweifel: Correct.

BrokerIPTV: You got a buyer who is sitting in limbo. They've got a contract out there. They don't know if they should go look at new properties; if they do look at other properties, they are going to have to withdraw this off the table, but they really want this one; do you see my predicament?

Sean Zweifel: Yeah, I understand. Again, its a time issue and the Realtor should coach their buyer and say Look, this is going to take some time. Do you like this house. Its a good deal. We will get this at this price and lot of our short sales, the houses are nice. So, they are not typical like REO properties, HUD home, stuff like that where they are just beat down and you have to put $20,000 or $30,000 in there. If you can get it down to a good price that you feel comfortable with, you are in moving condition property.

BrokerIPTV: You may or may not know the answer, but why is a bank who has already foreclosed on a property and its in their possession moving quicker to sell that property than one in a short sale?

Sean Zweifel: They should move quicker and they just don't, again, it's back to 400 short sales a day. They are overwhelmed and they just can't handle the problem right now. Thats right now. One of our staff members used to work for one of the banks and she said she could turn three, four years ago a short sale in 21 days. So, there's the time now again is they are overwhelmed and they don't know how to handle them. They are looking for any excuse to get rid of them.

BrokerIPTV: In your opinion, because they do not adhere to a timely fashion to the buyer, because some of these things have gone on where people have had the house sold to a higher bidder at the last minute, is this what's giving short sales a bad reputation in the market?

Sean Zweifel: It is. I ran across it a couple of times just recently. We submitted an offer and the Realtor won't give us even a signed contract and I have somebody coming from California, has to buy the house, we need an answer, and I know that they should just run with that offer. She even told me that this was the highest offer. Well, that shouldn't be a problem, we should move forward and close that offer.

BrokerIPTV: All right. Now, we have talked about buyers and sellers. We haven't even touched on real estate agents.

Sean Zweifel: Yeah.

BrokerIPTV: Because their commission is not guaranteed.

Sean Zweifel: Correct.

BrokerIPTV: And it's not for sure. Is that correct?

Sean Zweifel: You can bet on 5%.

BrokerIPTV: Okay.

Sean Zweifel: Depend on the bank, most banks across the border 5%, one bank like Bank of America only does like 4, 4.5, but they are only in Colorado. There is a few of those loans out there, but not as many as the Countrywide's.

BrokerIPTV: If I am a Realtor bringing a buyer, are they going to mess around with my commission at the day of closing?

Sean Zweifel: You should already have that. You submit that HUD and it should be 5% in there. You know that you are going to get 2.5 and I will get 2.5. We should split that down the middle.

BrokerIPTV: Sean, thanks. Great.

Sean Zweifel: Thank you sir.

BrokerIPTV: Really appreciate it.

Sean Zweifel: Thank you.

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