Short Sale Foreclosure
Stop the Bank Before It's Too Late

The term short sale foreclosure refers to a house that is actually in preforeclosure. This is the point where a bank has filed a foreclosure lawsuit with the county courthouse. Typically homeowners that have not paid their mortgage payments for over 90 days have been filed on by their mortgage company.

Believe it or not, I met a homeowner that had not paid the mortgage for over a year and the bank was just getting around to filing the formal paperwork! Unbelievable!

You can start a short sale foreclosure after one late payment but it is easier to convince the lender that they should accept less money when they have not received a payment for three or more months.

Real estate agents and investors can learn short sales to create a highly profitable niche and help people at the same time.

The current downturn in the real estate market has created a large opening. Creative professionals willing to learn non traditional methods of acquiring property will thrive even in these down times.

Once the foreclosure lawsuit is filed you are now dealing with a motivated lender and a motivated homeowner. The homeowner is considering a foreclosure short sale because they no doubt have exhausted all other options. The lender is ready to make a deal because they see the writing on the wall. This is the best time to contact both parties and get started with the negotiations.

Most people will do anything to avoid being kicked out of their own home and ruining their credit. A short sale foreclosure saves a homeowner's credit and gives them the luxury of time to relax and find a new place to live. No one wants the local sheriff to come knocking on their door to evict them from their own home.

Start by contacting a bank's loss mitigation department. They will give you all the information you need to move forward with negotiating a discount on a loan. Believe it or not banks don't want to take a house back into their REO inventory and they will work with you to avoid this.

Here are some key points to remember:

1. 90 days late or more is the best time to contact both homeowners and banks.

2. Have all paperwork prepared and ready to submit to the loss mitigation department of a bank.

3. Follow up, follow up and follow up again.

4. Ask the negotiator questions, they typically will be very helpful.

5. Do as many foreclosure short sales as you can, you are helping people out of a very bad situation and making money at the same time!

Knowing what steps to take when a situation like this arises can be the difference between financial disaster and a clean break.

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Wikipedia.com’s definition of a short sale
Return to Short Sale from Short Sale Foreclosure

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