negotiating a short sale is a win-win for all involved
negotiating a short sale is a win-win for all involved
Simply put, short sales are where the foreclosing financial institution agrees to accept less than full balance to settle their foreclosure action. If you do a short sale and you close on that property, you have created equity.
This can allow your homeowner to avoid foreclosure. That is huge. That is a big deal. No one wants to see banks repossessed homes for sale.
You know how it is when things are going wrong in your life. The phone rings off the hook. But its not job offers, its creditors who want their money back. It is relentless.
If you know what that feels like, you know how good it feels to help homeowners who are going through the same thing.
The short sale process starts with a Property Valuation Analysis. From there, a lender has to be contacted for the short sale application.
A hardship letter has to be written for a short sale. It has to be convincing and complete. The numbers have to be backed up with a short sale package. The lender evaluates the numbers. The deal is negotiated and goes to closing.
Now this is just a tip of the iceberg explanation of a short sale. It is very long and time consuming. I would recommend developing a rapport with some of the people involved. They might be kind with you during this process.
A short sale can take anywhere from 30 days to a year and a half homeowner file bankruptcy in the middle of it. It is a very tough process.
You have to just know how to weather it and how to roll with it.
This is an option that can save a lot of people from complete financial disaster. If you are into flipping houses for profit, it can be for you.