Learn How To Shortsale Real Estate

A real estate shortsale is the act of negotiating with a mortgage company to accept less than what is owed on a property. Believe it or not, mortgage companies are many times very eager to accept shortsales.

A more in depth definition can be found at Wikipedia.com by clicking the link below.

Wikipedia.com's definition of a short sale

Typically a homeowner should be 90 days behind on mortgage payments. I have successfully negotiated a discount on a mortgage that was just one month behind.

Mortgage companies can many times take big losses when foreclosing on a house. Even if there is some equity, foreclosure is expensive. Attorney’s fees, purchase back costs, maintenance costs, sales costs and more can add up to Thousands of dollars.

A reasonable offer of anywhere between 20-50% off of the mortgage balance can be obtained if the process is done correctly.

After finding a homeowner who needs assistance to stop foreclosure (providing it isn’t you), take the following steps.

1. Contact the bank’s loss mitigation department.

2. Submit an Authorization to Release Information so you will be able to access information about the account.

3. Request the bank’s requirements for short sales.

4. Follow the requirements exactly as requested and gather all documents. Do not deviate from the requirements.

5. Submit your completed package/offer.

6. Request a Broker Price Opinion (BPO) if not already done.

7. Follow up, follow up and follow up again. Be persistent but patient. A phone call every 3-5 days should be fine.

For a homeowner a short sale offers an opportunity to avoid foreclosure and bankruptcy.

A real estate investor can do a short payoff to create equity when finding a buyer behind on their mortgage with little or no equity.

Realtors can learn to short a mortgage loan to create a never ending supply of listings that their colleagues will walk right by.

Learning to negotiate a discount on a mortgage loan is the fastest growing way to invest in real estate. There is little to no competition, so get started!

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