Is listing a home with Seller’s potential of Deed in Lieu in Florida worth your time and effort?
I was contacted by my seller about six months ago about listing a home which they bought during the housing boom and now left owing more than the house is worth and can afford. They also told me they were in contact with their Mortgage Servicing Company for HUD and received an approval for the Pre-Foreclosure Sale Program (PFSP). Great! So, I thought before reviewing the letter.
After doing my Comparable Market Analysis for this home, I stipulated the home would sell for $75k based on the condition of the home. After reviewing the PFSP letter of their suggested list price, deadline, their incentives to the buyer and seller, and of course the lender’s must net-amount, the sales price stated far more than my recommended list price. Who in the world submitted to the lender their price opinion?
I took the listing with the lender’s price recommendation to help my seller. Hoping to negotiate with the lender’s negotiator by updating them continuously with my marketing efforts, showing feedbacks, and market analysis with recommendation on price reductions based on the current market.
After multiple price reductions – not enough to generate any offers – I contacted the lender’s negotiator and asked them to renegotiate the listing price. The reply was that the deadline to complete such program is near and the lender would agree to do start the procedure for Deed in Lieu of Foreclosure providing the seller agrees.
Is listing a home doomed for Deed of Lieu in Florida worth your time and effort?