3 Factors That Can Make Or Break Short Sale Negotiations
If you have been involved in real estate investing for very long
, then you have probably heard of short sales before. A short sale is the term used for a transaction between a lender and a buyer in which the buyer pays a discounted amount for a property and receives the title and the owner of the property is not compelled to go through foreclosure. Everyone wins. The buyer gets a great deal. The seller does not have to go through foreclosure and no longer is owner of the problem property that they were going to lose anyway. The lender does not have more REO (real estate owned) properties on their hands to drain resources and money every month in maintenance and sales attempts.As you can imagine, this strategy is a powerful one and is very popular with real estate investors, who make most of their wealth by getting properties below market value and then selling them or holding them in order to generate income.
However, you cannot simply do a short sale by walking into a bank and asking for a list of properties that the bank might be willing to give away at a discount. If you try this, you could actually blacklist yourself with the loss mitigation department (people who handle properties that are upside down and are going to cost the lender money even if they are repossessed) before you ever even get a single deal off the ground.
Here are a few key things to do before you contact the lender to make your case stronger and help improve your chances of a successful negotiation:
Know who to ask for
If you can get a name, that is great. If not, at least know the proper title for the person who will be handling the short sale should the lender decide to work with you. In most cases, they are called Loss Mitigation Specialists, but some lenders have variants. You can usually find the right title with a little research on the lenders website.
Do your research
Make sure you know everything you can possibly know about the property ahead of time. A successful short sale relies on your being able to convince the lender that they will actually lose money if they repossess the property. Presenting your case clearly and effectively early on will help you get the lenders attention and shows that you are not someone who is going to waste the banks time.
Have all your paperwork in order
Do everything you can to make it as easy as possible to work with you. Always label things clearly and deliver all required paperwork promptly. Make sure all authorization forms are in order to allow you to negotiate on behalf of the seller before you get started.
In many cases, successful short sales are fully contingent on the lender being willing to work with you. Having your case clearly presented, being easy to work with and taking care to be courteous and highly efficient can make or break your short sale negotiations.
Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1200 real estate deals, owned a construction company, been a private lender, and owned a property management company. Peter currently works with clients all over the US helping them achieve riches in real estate.
Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1200 real estate deals, owned a construction company, been a private lender, and owned a property management company. Peter currently works with clients all over the US helping them achieve riches in real estate investing. For more information please visit www.CoachingByPeter.com.
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