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Learn How To
Short Sell Real Estate
Learning to short sell real estate is a must in today’s changing market. Not only will you be assisting a homeowner to stop foreclosure, you will be tapping into a virtually undiscovered market.
A short sale is when you negotiate with a mortgage company to accept less than what a homeowner owes. Ideally the homeowner is 90 days late on payments and has no other way to sell, but mortgage companies have really started to loosen up their policies recently.
Homeowners who are upside down in equity and not yet behind on their mortgages are now using a short sale as an exit strategy because they are unable to sell their houses otherwise.
You can find a great definition for a short sale by clicking the below link.
Definition of a Short Sale
Mortgage companies are many times very eager to accept a short sale. It can cost many thousands of dollars to foreclose on a property and it may be in their best interest to take a loss now.
Some loans are owned by pools of investors who lend money or they may be represented by a stock on Wall Street. When a homeowner gets behind on payments, the “asset” becomes non-performing. The owners of the mortgage can get very anxious to get paid something, so they may accept a large loss. This is where you see big profits! The following are steps to take to start a short sale:
1. Contact a homeowner who is behind on payments (if it isn’t you). 2. Get a contract on the property for less than what is owed to the bank. 3. Contact the bank’s loss mitigation department. 4. Send an authorization to release information so you are able to access the account. 5. Request the requirements for a short sale. 6. Compile documents and submit only a complete package. 7. Follow up, follow up and follow up again. Being patient is the most important part of understanding how to short sell real estate. A short sale can take from a couple weeks to several months. Typically your patience pays off big. If you want to find a highly profitable niche market that has virtually no competition, learn to discount mortgages to stop foreclosure!
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