Short Sale CONTRACT FAQ's
Here are the most frequently asked questions about the GPS Short Sale Contract. If you have others, just give us a call
so we can help. These and more questions are available in a "Dear Buyer" Letter you can download/print by clicking
here: DEAR BUYER LETTER
1) Who pays the GPS Loss MItigation Fee?
GPS’s primary source of income is via “Loss Mitigation Service Fees”. GPS Fees are expected to be paid by Seller
Concessions, therefore GPS Short Sale transactions are structured such that even though the GPS Fees will appear
on the BUYER’s side of the HUD, these fees are offset by the Seller’s Concessions (from the Seller’s Lenders) which
appear on the Seller’s Side of the HUD. What this means is that GPS Fees are essentially paid by the Seller’s
Lenders as a “closing cost” – as a result, normally there should be NO cost to the Buyer for having GPS negotiate
the short sale.
2) How does this relate to the contract?
In order to have a GPS Negotiator work on your behalf, both the Buyer and the Seller will formally agree by completing
the GPS Buyer's Agreement Form (this form is also located within the GPS Dear Buyer Letter).
As you can see, Seller will agree to pay Seller Concessions of UP TO 6% of the Contract Price to cover Buyer Closing
Costs, Prepaid items, and other charges. The contract will clarify that the Seller will NOT be expected to bring such
money to closing in the form of out of pocket cash, but instead expects such concessions to be paid from their lender
(s)’ payoff proceeds.
All parties agree that GPS will negotiate with the Seller’s lender(s) to attempt to influence them to provide an official
Approval Letter authorizing this sale to proceed and that for this service GPS will be paid a Loss Mitigation Fee of 3%
of the Contract Price (rounded down to the nearest $100) or $3000 (whichever is greater). This fee will be listed on
the Buyer’s Side of the HUD as an “LM Assessment” and will be payable to “Genesis Property Solutions, LLC” at
closing. Although the GPS Fee is shown on the Buyer’s Side of the HUD, in order to collect this fee, GPS must
successfully negotiate with the Seller’s Lender(s) to induce them to approve Seller Concessions for an amount that is
equal to or greater than the amount of the GPS Fee. If there are any concessions remaining after the GPS Fee has
been paid, then these monies will be credited to the Buyer.
3) A Message to Real Estate Agents:
As previously noted, the sole function of GPS in a short sale transaction is to handle the loss mitigation negotiations
(based on financial modeling assessments) with the seller’s lenders in an effort to influence them to accept an
alternative to default/foreclosure that will be acceptable to all parties. GPS is not a Real Estate Brokerage; therefore
we leave contract negotiations between buyers and sellers to the professionals (ie YOU as the agents). That being
said, we do not want our fees and/or methods of collecting such fees to prevent a deal. If you as the agents have
suggestions on how you wish the contract/addendums to be written, we are open to dialoguing with you. Just like
you, at GPS, we work hard to EARN our income, however we fully understand that real estate transactions in this day
and age sometimes require flexibility; so long as your idea will allow GPS an opportunity to earn our normal
compensation in exchange for our efforts, we’re open to alternative wording if you care to suggest any. In short,
GPS does not seek to stand in the way of allowing the buyer and seller to transact their business. We don’t want
to be a barrier to a successful closing, we want to be part of the solution!
4) Why do I need GPS to be involved anyway?
In general, it’s true that you don’t NEED GPS in order to do a short sale. You and/or your realtor could do it on your own
(if the seller agreed), however the fact is that by working with an experience Loss Mitigation Firm like GPS, you’ll have
a much better chance of getting your deal accepted!
Realtors are capable of negotiating short sales. So are attorneys and title company representatives. However, all
three of those organizations have other job functions which are their primary duties. At GPS, our people have ONE
function and one function only – to negotiate with lenders of homeowners in distress in order to help lenders and
homeowners agree on solutions that will help the client either save their home or get approval to (short) sell it. This is
what we do all day, every day. In addition, we are experts at what we do. This does not guarantee that we will get an
approval on every case we handle, however when you consider that the average success rate of realtors working their
own short sales is about 25%, and compare that to the GPS success rate of over 75%, most people would agree that
it IS a benefit to work with a professional Loss Mitigation firm like GPS.
Short sale transactions involve much time and effort compared to a typical real estate transaction. In a non-short sale
transaction, if buyers and sellers agree on a price and terms, the deal can be closed immediately. In a short sale
transaction, this is not the case, and in fact negotiations with the seller’s lender are required in order to seek an
Approval Letter – this extra step necessitates the need for a negotiation specialist organization like GPS. As a result,
true short sale success can only be achieved when both realtors and GPS are able to partner together to bring a deal
to completion.
If you really want to buy this house, you need the bank to issue an Approval Letter. If you want to have the best
chance to get an Approval Letter, than you need a company like GPS. In the end, that’s what matters. Without the
bank’s approval you can’t buy the home. We hope that you will give us the opportunity to prove our worth to you.
HAVE OTHER QUESTIONS?
Please send us an email at gps@genesispropertysolutions.org or give us a call at 888-GPS-LLC7 and let us help
you.
On behalf of the employees of GPS, thank you for the opportunity to work with you.
Here are the most frequently asked questions about the GPS Short Sale Contract. If you have others, just give us a call
so we can help. These and more questions are available in a "Dear Buyer" Letter you can download/print by clicking
here: DEAR BUYER LETTER
1) Who pays the GPS Loss MItigation Fee?
GPS’s primary source of income is via “Loss Mitigation Service Fees”. GPS Fees are expected to be paid by Seller
Concessions, therefore GPS Short Sale transactions are structured such that even though the GPS Fees will appear
on the BUYER’s side of the HUD, these fees are offset by the Seller’s Concessions (from the Seller’s Lenders) which
appear on the Seller’s Side of the HUD. What this means is that GPS Fees are essentially paid by the Seller’s
Lenders as a “closing cost” – as a result, normally there should be NO cost to the Buyer for having GPS negotiate
the short sale.
2) How does this relate to the contract?
In order to have a GPS Negotiator work on your behalf, both the Buyer and the Seller will formally agree by completing
the GPS Buyer's Agreement Form (this form is also located within the GPS Dear Buyer Letter).
As you can see, Seller will agree to pay Seller Concessions of UP TO 6% of the Contract Price to cover Buyer Closing
Costs, Prepaid items, and other charges. The contract will clarify that the Seller will NOT be expected to bring such
money to closing in the form of out of pocket cash, but instead expects such concessions to be paid from their lender
(s)’ payoff proceeds.
All parties agree that GPS will negotiate with the Seller’s lender(s) to attempt to influence them to provide an official
Approval Letter authorizing this sale to proceed and that for this service GPS will be paid a Loss Mitigation Fee of 3%
of the Contract Price (rounded down to the nearest $100) or $3000 (whichever is greater). This fee will be listed on
the Buyer’s Side of the HUD as an “LM Assessment” and will be payable to “Genesis Property Solutions, LLC” at
closing. Although the GPS Fee is shown on the Buyer’s Side of the HUD, in order to collect this fee, GPS must
successfully negotiate with the Seller’s Lender(s) to induce them to approve Seller Concessions for an amount that is
equal to or greater than the amount of the GPS Fee. If there are any concessions remaining after the GPS Fee has
been paid, then these monies will be credited to the Buyer.
3) A Message to Real Estate Agents:
As previously noted, the sole function of GPS in a short sale transaction is to handle the loss mitigation negotiations
(based on financial modeling assessments) with the seller’s lenders in an effort to influence them to accept an
alternative to default/foreclosure that will be acceptable to all parties. GPS is not a Real Estate Brokerage; therefore
we leave contract negotiations between buyers and sellers to the professionals (ie YOU as the agents). That being
said, we do not want our fees and/or methods of collecting such fees to prevent a deal. If you as the agents have
suggestions on how you wish the contract/addendums to be written, we are open to dialoguing with you. Just like
you, at GPS, we work hard to EARN our income, however we fully understand that real estate transactions in this day
and age sometimes require flexibility; so long as your idea will allow GPS an opportunity to earn our normal
compensation in exchange for our efforts, we’re open to alternative wording if you care to suggest any. In short,
GPS does not seek to stand in the way of allowing the buyer and seller to transact their business. We don’t want
to be a barrier to a successful closing, we want to be part of the solution!
4) Why do I need GPS to be involved anyway?
In general, it’s true that you don’t NEED GPS in order to do a short sale. You and/or your realtor could do it on your own
(if the seller agreed), however the fact is that by working with an experience Loss Mitigation Firm like GPS, you’ll have
a much better chance of getting your deal accepted!
Realtors are capable of negotiating short sales. So are attorneys and title company representatives. However, all
three of those organizations have other job functions which are their primary duties. At GPS, our people have ONE
function and one function only – to negotiate with lenders of homeowners in distress in order to help lenders and
homeowners agree on solutions that will help the client either save their home or get approval to (short) sell it. This is
what we do all day, every day. In addition, we are experts at what we do. This does not guarantee that we will get an
approval on every case we handle, however when you consider that the average success rate of realtors working their
own short sales is about 25%, and compare that to the GPS success rate of over 75%, most people would agree that
it IS a benefit to work with a professional Loss Mitigation firm like GPS.
Short sale transactions involve much time and effort compared to a typical real estate transaction. In a non-short sale
transaction, if buyers and sellers agree on a price and terms, the deal can be closed immediately. In a short sale
transaction, this is not the case, and in fact negotiations with the seller’s lender are required in order to seek an
Approval Letter – this extra step necessitates the need for a negotiation specialist organization like GPS. As a result,
true short sale success can only be achieved when both realtors and GPS are able to partner together to bring a deal
to completion.
If you really want to buy this house, you need the bank to issue an Approval Letter. If you want to have the best
chance to get an Approval Letter, than you need a company like GPS. In the end, that’s what matters. Without the
bank’s approval you can’t buy the home. We hope that you will give us the opportunity to prove our worth to you.
HAVE OTHER QUESTIONS?
Please send us an email at gps@genesispropertysolutions.org or give us a call at 888-GPS-LLC7 and let us help
you.
On behalf of the employees of GPS, thank you for the opportunity to work with you.
| Contract Frequently Asked Questions |
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| NEXT STEPS |
| EMAIL GPS gps@genesispropertysolutions. ORG |
| FAX GPS 813-200-3324 |
| Call GPS 888-GPS-LLC7 |
| Genesis Property Solutions, LLC "Creating New Beginnings for Homeowners" Let GPS guide you to a fresh start in life, too! |
| Copyright Genesis Property Solutions, LLC. All rights reserved. information. All GPS Fees are subject to change without liability, risk or loss, personal or otherwise as incurred as in progress.notice, however any change will not affect deals currently in progress. |
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| EVIDENCE OF SUCCESS: Why should you WANT to work with GPS? We get deals approved. Here is just a sample of the many files we have gotten Approval Letters for: click here for Approval Letter Samples |