Real estate investors can frequently make very profitable purchases of real estate through a short sale. Many short sales do not get approved or fall through for a variety of reasons. Learn here the step-by-step process to initiate a short sale, starting with the homeowner-borrower and moving through lender negotiations to the closing.
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The short sale niche is certainly growing in importance and popularity. Lenders are overwhelmed with foreclosure properties, and the word is that they're getting a little easier to deal with on short sale offers. A successful short sale helps the lender to avoid yet one more foreclosure home on their books. These 8 tips will give the real estate professional a quick look at what they need to be aware of in working with sellers and lenders in a short sale transaction.
Short sales will not work if there is sufficient equity in the home for the lender to sell it and at least break even in a foreclosure. The homeowner must be "upside-down" in their loan. Learn how to determine if this is the case.
Lenders will not talk to investors, potential buyers or real estate agents unless they are instructed to by the borrower. You will need to get their approval in writing, contact the lender with that approval, and make the first telephone contact. Learn about it here.
The hardship letter is the cover for the short sale package. It is a lot like the cover letter for a job resume. It must be convincing and complete. The lender must get the first impression that it's a short sale or a foreclosure or bankruptcy.
The meat of your short sale presentation backs up the statements made in the hardship letter. You prepare a thorough and detailed set of documents and financial data to support the claim that a short sale is a good solution for the lender.
Learn the things you need to consider in the preparation of a short sale purchase agreement. Where should you get one? Do you need an attorney? What elements need to be present in the purchase agreement?
If you prepared a thorough short sale package, the lender will be evaluating your numbers and getting some of their own. Learn about it here.
You may have to go back and forth with the loss mitigation department at the lender to get an acceptance of a short sale. Learn about this negotiation and the importance of a fast close.