Winder here with your second short sale lesson

This is How you go about negotiating the price down without having a headache from the Loss Mitigation department, this first tip is call.

The Discount:

You find a homeowner facing foreclosure who has little or no equity in

their home. You explain you may be able to buy the home if you can convince

the lender to give you a break on the amount due on the loan.

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You must be upfront and tell the homeowner exactly what is going on and

have he/she/them sign a sales agreement.

If the homeowner knows (or think they know) the amount due on the loan

you can use 50% of that number as your purchase price as you fill out the

purchase contract. That number can be adjusted with an amendment to the

agreement after you talk to the mitigation rep and find out the true payoff figure.

At this point you just want to get the homeowner committed to the deal.

Get everyone who is on title to sign the purchase contract before you

contact the mitigation department.

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These homeowners are under a lot of stress and you don't want to depend

upon a verbal agreement and then have them back out just as the deal is ready to go into escrow.

To protect yourself, the purchase agreement you prepare for the

homeowners' signatures must contain a clause like "This agreement is

contingent upon the lender accepting a discounted loan payoff acceptable to the buyer."

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After you collect all the information from the buyer, make sure to fax the Authorization to release Information to the bank, it usually take 24 to 48hrs for the bank to process this information, once they received  it you must call and talk to a rep from the Loss mitigation Department get their name fax# if you can their email address and mailing address, Make sure you fax a complete Short Sale package to that person.

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Remember they receive short sales packages everyday, so make sure you know what you are sending, if you send a mediocre package it will go in the garbage, and that will be the end of your deal.   

Until next time! Happy Investing

                                                                        http://WinderAlexandre.com