Short Sales Are Hot Right Now

The hottest way to make money in real estate investing is short sales. If you have heard the term but don’t know how to do one, it is well worth your time to find out.

Learning to discount a mortgage loan for someone who is facing foreclosure is not only easy and lucrative, but it’s a good deed.

Before I mention specifics, find a definition and more information at the link below.

Definition Of A Short Sale

The best way to look at the situation is a homeowner who is behind on payments doesn’t have many other options except foreclosure and bankruptcy. They have nothing to lose. Negotiating a discount doesn’t always work but if done correctly it can save a homeowner from foreclosure and bankruptcy.

You start by contacting a homeowner who has little or no equity and no way to sell their house.

Then get an authorization to release information signed so you can speak with their bank.

Get an agreement of sale signed by the home owner (if you are an investor), pay stubs, tax returns, bank statements and other financial information.

Ask the homeowner to draft a financial hardship letter explaining exactly why they can’t pay the mortgage.

Contact the mortgage company’s loss mitigation department.

Ask for their requirements for a shorting a mortgage.

Follow the requirements word for word, make a low offer (25% off or more) and request they waive a deficiency judgment or lien (very important).

Request a broker price opinion or appraisal to evaluate the property.

Follow up, follow up, follow up and ask questions.

Get an acceptance letter and buy the house at a great discount or assign the contract for a quick $10,000.

Step by step guides are available for short mortgage sales that go in depth on each area of the process. Overall it isn’t as difficult as it sounds and can yield huge profits for minimal effort all while helping someone avoid foreclosure.

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