What Is A Short Payoff Sale?A mortgage short payoff sale is most commonly referred to as a real estate short sale. This technique is quickly becoming the most popular way to avoid foreclosure. The current real estate market has many people behind on their mortgage payments. When a homeowner has little or no equity and needs to sell their house, a short sale can be done to discount the payoff amount. Typically a real estate investor or agent negotiates a mortgage short, but homeowners are taking the initiative and learning short sales. Who better to represent your best interests than yourself? A mortgage company accepts less money than what is owed for many reasons. Foreclosure is very expensive and sometimes banks accept less and end up saving money. Attorney’s fees, purchase costs, sales costs, maintenance and administration fees add up to many thousands of dollars. Here are some steps to take to short a mortgage loan. 1. Contact a homeowner who needs your help (assuming you aren’t the homeowner). 2. Get an authorization to release information signed, so you are able to access information about the account. 3. Request the bank’s requirements for a short sale from the Loss Mitigation department. 4. Gather all documents from the homeowner in accordance with the requested requirements, including an agreement of sale for the proposed discounted price. 5. If you are an agent explain to Loss Mitigation what you are trying to do and that you will have an agreement of sale shortly. 6. Submit the package only when it is totally complete, no exceptions. 7. Request a Broker Price Opinion or appraisal be completed. 8. Follow up with the assigned negotiator on a weekly basis. 9. Get an acceptance letter and close the deal using your preplanned exit strategy. Remember to not be afraid to ask questions. The mortgage company wants the same thing as you do. Ask for a reasonable discount (20-35% off or more if a fixer upper) and your chances are good. A short payoff sale is a great way to create a market niche for your business and help people at the same time. Get Our Free E-Course Training Guides and Tips
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