What You Must Know About A
Real Estate Short Sale

A real estate short sale can be referred to as a short payoff or mortgage discount. It is when a real estate agent, investor or homeowner contacts a mortgage company and requests a discount on the payoff amount.

It is true that mortgage companies do accept less than what is owed . It happens because foreclosure is a very expensive process and accepting less now means less time, aggravation and money spent later.

Facts about short sales:

- A homeowner should be at least 90 days behind in payments. It can be done earlier but this is best because both homeowner and lender are more motivated.

- The point of contact is the loss mitigation department . It can also be called the foreclosure department or foreclosure resolution department.

- A reasonable offer is 20-35% less than what is owed depending on the price of the house and repairs needed.

- Always request a deficiency judgment be waived. This will prevent the homeowner from having to sign on the forgiven debt.

- Banks do not want to own real estate, at all, ever. They are in the business of lending money not managing property.

- A short sale can take as little as 3 weeks to up to 5 or more months. They are almost always worth the wait considering you will be creating equity and a great deal.

Taking the time to learn about a real estate investing short sale can be worth a fortune to you. Real estate investors and agents can find a highly profitable niche that has little to no competition. Go for it!

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