"The Life of a Short Sale"

When it comes to the life and times of a shortsale, sometimes their not short meaning they can take some time to complete but are short when it comes to price. Short Sales : is a sale where the lender allows a property that is secured by a mortgage or deed of trust loan can be sold short(less than existing loan balance)with factors and stipulations involved.Short Sales are sometimes the last resort for lenders before proceeding with foreclosure and can be few and far in between.Borrowers who are looking to short sale must qualify, and experiencing financial hardships.

  After finding short sale candidates and contacting them, you have them agree to proceed with the s.s.,you will then start to accumulate paperwork to help the approval rate.Starting with the last bank communication statement so you can confirm what sellers have told you is in fact the truth and is accurate.You can start doing "due diligence" at this time to search for liens and anything that might cloud the process. You can then determine(if any liens,etc...are found)  if you would like to continue with the process and you can then have the seller contact the bank and ask for a short sale forms (third party authorization) package which will allow you to try and work with these creditors to have them release(remove) the liens.

 Your package will arrive and you can have the sellers fill out their paperwork as you will fill out the third party authorization which will give you authorization to speak with the banks personnel(loss mitigation dept.) that is assigned to the case.The bank sometimes very helpful and can inform on what and how the forms should be submitted.Reserving the right to do a full property inspection if the offer is accepted and negotiating can begin.Remember that a short sale will  avoid the foreclosure process which can be an advantage,one being credit record .There are disadvantages as well as advantages when doing short sales, we will cover these on a later article. The banks are in the lending industry not home selling industry, so they are at times looking to help if you ask.

Once the bank agrees to your offer, after you have prepared a case for them so that they know what the property worth might be, along with anything detrimental that will state why you could not and will not pay full price for the property.There are many things that will help your case when sending information to the bank and asking them to accept your low offer. Job loss,crime,major repairs,hardship,bk's,bad neighborhoods,etc.. can be just some of the information you can send the bank so they can consider or accept the offer. The more reasons the better.
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 You are then ready to submit the info to the loss mitigation dept. and you may have yourself a short sale accepted.Remember that building a case will require to prove the homeowners hardship,damage to property and comps for the area will support your submissions to the bank and they will help make a decision on the offer.Short Sales are growing and allow investors to submit a few documents and work out a compromise with the banks L.M.D. and purchase a home at a discounted price.

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