Negotiating A Short Sale
Can Be Easy

If you take the time to learn, negotiating a short sale on a mortgage loan is easy. Most bank negotiators want to work with you to avoid foreclosure.

It is in the mortgage company's best interest to not foreclose on a loan. The more foreclosures and bank owned properties in their inventory the worse it is for the bank.

People who are behind on their mortgage and have no way to sell due to lack of equity have few choices. A great option is to negotiate a discount on their mortgage.

Typically real estate investors and realtors contact the homeowner’s bank in an effort to offer less money than what is currently owed. Many times a bank will agree to release the lien for less because it knows that foreclosure is the alternative.

Most people are under the impression that a bank will not agree to short a loan, so they won't even try. It may be time consuming and at times frustrating, but it is well worth the effort.

After all the paperwork and information requested is submitted to the bank, the negotiation begins. The bank’s loss mitigation department typically handles all short payoff requests.

- Ask for a reasonable discount, somewhere around 25-35%. Keeping it reasonable will increase the chances of acceptance.

- Have all your ducks in a row. Make sure you give the negotiator everything that was asked for exactly as instructed.

- Asking questions is the best way to clarify if you aren’t sure.

- Follow up, follow up and follow up again. Don’t be a pest but calling every 3 business days or once a week to check in is fine.

- Always request a waiver of deficiency judgment for the forgiven balance.

Not all discounts are accepted but if you are reasonable and follow the parameters, your chances are pretty good.

Resources for negotiating a mortgage short sale can be very helpful when you are first learning.

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