Investing in short sales is a good way to profit in real estate and the short sale package is pretty simple to develop. After you have successfully negotiated the purchase price with the seller , you should design your package so that the loss mitigation officer at the bank fully understands the trade off between accepting and rejecting your short sale purchase offer. As the lender makes the final decision on the deal, you should be in contact with their loss mitigation department immediately.
As you get started down the road, find out from the property owner who currently holds the note on the mortgage. This may be challenging as a number of mortgages have been bought and sold and bought again. Regardless, it is imperative that you find out who owns the note in order for the sale to proceed.
Contact the loss alleviation department of the lender who holds the note and discuss your plans with the officer. Discover what will be necessary to craft a short sale package that will meet the bank’s needs.
After you conversation, go about developing your package. As this is a short sale, you will need to give sufficient proof that the home is not worth what is currently owed on the mortgage. To help build your substantiation, bring in appraisers and contractors to give an estimate to the cost of rehabbing the property. Also bring in an appraiser to give you a true market value estimation of the property. This, in addition to proof that the property owner can no longer pay the mortgage must go into the package.
The next step is simply to submit your short sale package to the lender and wait. Depending on a number of factors, the lender may accept or reject your offer. However, if you have done your due diligence, and the home is in pre foreclosure, the chances of the bank accepting your short sale offer are relatively high.
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