Learn How To Short Sale

For many people the process can seem overwhelming. If you want to learn how to short sale, all it takes is a little time and initiative.

Trust me, it’s not as difficult as it seems. The first time someone explained what it was I almost giggled. I honestly believed that it would be too difficult and no mortgage company would do it. Boy was I wrong.

A short sale is when the payoff amount owed on a mortgage loan is discounted.

Typically a homeowner must have a valid financial hardship such as job loss, divorce, death in the family or other hardship to have an offer accepted. Although banks have become much more lenient in the current market, a homeowner must still present a reasonable financial hardship.

Many homes in states such as Florida and California have seen extreme price declines. These declines have led to homeowners owing much more than the current value of the property. Learning how to short sale a home is especially important for homeowners who are "upside down" in equity.

Since learning how, I have discounted numerous loans to the tune of hundreds of thousands of dollars. It’s not difficult or incredibly time consuming.

Here are the steps to take to get started:

1. Contact a homeowner who has little or no equity, is behind on payments and needs to sell (if it’s not you). Craigslist is a great way to find motivated home sellers for free.

2. Contact their mortgage company’s loss mitigation department and get an authorization to release information.

3. Ask the mortgage lender to send you their requirements.

4. Get all the paperwork together exactly as they requested it.

5. Submit your package.

6. Follow up, follow up and follow up again.

7. If you don’t know or have questions, don’t be afraid to ask.

Mortgage companies typically want to work with you to prevent foreclosure and accepting less than is owed can sometimes be to their advantage.

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