If you are planning on invest in real estate, short sales may be a good place to start. The development of the short sale package is normally basic. After you have successfully negotiated the purchase price with the seller , you should start working with the lender to develop a short sale package. Since the lender will have the final say in the deal, you should contact them very early on.
Getting started is easy, simply get the loan number and permission from the property owner to contact the lender. This may be challenging as a number of mortgages have been bought and sold and bought again. Regardless, in order for the deal to go through, you will need to be in contact with the owner of the mortgage.
Contact the loss alleviation department of the lender who holds the note and discuss your plans with the officer. Determine what information the bank will need in order to make a decision on the short sale package.
After discussing the short sale process with the loss alleviation officer, start building your short sale package. Because this is a short sale, you need to provide as much proof as possible that the value of the home is well below that of the current mortgage. Document any areas of the property that need repair and get contractors to provide good faith estimates on repairs. Also bring in an appraiser to give you a true market value estimation of the property. These, as well as letters of hardship from the property owner need to go into the short sale package
After completing the short sale package, you simply submit it 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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