Investing in short sales is a good way to gain in real estate and the short sale package is pretty easy to develop. As soon as you have decided 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. Since 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 find out from the property owner who currently holds the note on the mortgage. This may be challenging as a number of mortgages have been bought and sold and bought again. Regardless, find out who the lender is and get written permission from the property owner to contact the lender to discuss the note.
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 alleviation officer. Determine what information the bank will need in order to make a decision on the short sale package.
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. Get a true market appraisal from a certified appraiser for the property as well. This data, along with letters from the homeowner stating that they can no longer afford to pay the mortgage must be included in your short sale package.
Once the package is completed, submit it to the lender for review. Depending on a number of factors, the lender may accept or reject your offer. If you have created a thorough short sale proposal and your offer is sound, the bank should accept your offer. If they don’t, simply change your offer and submit it again.
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