Real Estate Investing And Short Sale Packages

by Karen Larry on December 20, 2011

Investing in short sales is a good way to gain in real estate and the short sale package is pretty simple to develop. When you have agreed upon a purchase price, you may choose to contact the lender to get a good feel for what their short sale expectations are and how they would like to see the package. For the reason that the ultimate goal is to get the bank to accept your offer, you should be in contact with the lender well before you begin assembling your short sale package.

Getting started is easy, simply determine which lender owns the note. Because of the way mortgage notes have been handled over the last few years, finding the actual note holder may be more of a challenge. Regardless, it is imperative that you find out who owns the note in order for the sale to proceed.

Get in contact with the bank who controls the mortgage and determine who would be responsible for allowing the deal to go through. This is typically a loss mitigation officer. Find out what the bank needs and expects in a short sale package as well as any specific details that will help the short sale purchase offer to be accepted.

After you conversation, go about developing your 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. With the help of the property owner photograph and document any areas that need repair. Bring in a contract to provide an estimate of the costs to make the repairs. 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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