S H O R T S A L E
"Learn Why Short Sales Continue to Be the Single Most Effective Technique Used to Acquire Investment Property!"
A short sale is a legally-binding agreement to allow a home to be sold for less than the amount that is owed.
A Short sale is a type of pre-foreclosure sale in which the lender allows the property securing a mortgage or deed of trust loan to be sold for less than the full amount due, and accepts the proceeds from the sale as payment in full. The lender may allow a short payoff sale due to factors such as the borrowers deteriorated financial circumstances, the propertys physical condition, and local real estate market conditions.
What is involved in the process?
A successful short sale involves the following seven steps:
- Prequalification of the homeowner, the property, the real estate market and the lender to determine if it would make financial sense for both the borrower and the lender to agree to a short sale;
- Researching and gathering information, documents and data to be submitted in support of the proposal to the senior and junior lien holders (generally lenders);
- Marketing the property to find a ready, able and willing buyer/investor
- Preparing a compelling proposal indicating the benefits the lender(s) (and other lien holders, if any) stands to gain from the short sale versus allowing the property to go to foreclosure;
- Submitting the proposal to the lender(s) and any appropriate entity and/or individuals;
- Negotiating terms for approval;
- Closing the deal.