"A Short Sale in a Brief"

     Well let's see, If the lender will agree to a short sale,in which not all lenders do.It would probably make more sense for them to foreclose(if they are shorted), unless it can qualify as a short sale.But to avoid the cost of foreclosure the lender will allow the buyer to purchase the home for less than the mortgage balance (pre-foreclosure stage) and a listing agreement is signed with a Realtor and subject to selling as a short sale with third party approval.A good agent can locate buyers for homes in that price range, style and size.Buyer makes an offer, of course after doing your due diligence,( you know, things like,checking county records, comps,mortgage amounts, number of loans,short sale package,number of lenders to name a few). Short sales can take time to just get a response, so have patience because the lenders is in control and can try to change conditions due to new laws or market changes and also having a lawyer at your side does not hurt, which is what the lenders do.

If the seller accepts your offer, send it to the lender for approval and there is no deal until the lender accepts.Have the pre-approved letter or proof of funds etc.

 Here are a few things to consider when dealing with a short sale:

• submit the short sale package and the offer
• the lender will acknowledge and respond
• bank will order the appraisal or BPO
• Lender reviews file
• negotiator is assigned 
• sort sale is approved or rejected

Sticking it out sometimes is what you have to do with short sales, the short sale can last in some cases 4 or even 5 months.

 There are also documents that the lender might want you to submit, to give you an idea of some of those :

• Authorization letters
• estimated cost of the sale
• Hardship letter
• bank statements
• proof of income
• purchase agreement
• Comps
• listing agreement

 Remember ,that short sales are very hard for homeowners to go through, but there are alternatives and a short sale is one of them. A investor who has exp. in short sales will have a good team on his back to get you through the process. But it will be a very good idea to contact a real estate lawyer and other consultation.

 This link will lead you to about.com,they gibe new investors many new ideas,tips and strategies to look for when tying to locate and buying short sales: http://homebuying.about.com/od/shortsale/a/100108_RejectSS.htm

                                                                                 Greg H

                                                                               Hcompanys