subject: How To Negotiate A Real Estate Short Sale [print this page] If you are thinking of getting involved with Short Sales as a method of real estate investing, you need to learn how to negotiate your way to a successful conclusion with the lender. A short sale is simply where the bank agrees to take a payoff amount that is lower than the amount due on the mortgage.
This short sale agreement is made when the house is worth less in the current market than is owed on it. With all of the money that can be lost from a completed foreclosure, you would think that lenders would be bending over backwards and jumping through hoops in order collect the most money possible. This just simply is not the case though. Much of the problem has to do with the fact that there is just such a large number of homes going through the foreclosure process that are trying to get out through a short sale.
Today, it is becoming more commonplace that many sellers do not have to have their loan in default to ask for a short sale. This however means there are even more people who are bugging the loss mitigation department. What you have to do is to make sure that you are fully aware of what you will probably be dealing with so that you can successfully get through the process.
One of the most important things you can do is to make sure that the documentation package is complete. If you are asked to send in more information, make sure that you do it right away as your file does not move an inch forward until it is complete. Something that you might find annoying, but it generally can't be changed, is the fact that you will probably have to speak with someone different each and every time you call in. If foreclosure is just around the corner, make sure that you are insisting on speaking to a negotiator or a supervisor right away. Time could be running out for you and the bank. One thing that you have to keep in mind is that you should never take no for an answer. Keep pushing the issue and ask to speak to a supervisor.
You also have to make sure that you are ready to state the case of hardship and come up with proof of it. You have to be strong with your case why they need to agree to a lower sale price or they will simply look over your file and toss it aside. While you do not want to take no for an answer, you want to remember that the bank is not under any obligation to agree to a short sale with you. It is legally considered a luxury that such an option exists. Because of this, you want to make sure that you are getting any and every agreement from the lender in writing as it serves as your only proof.
Also, and this applies to any time you call the lender for any reason, make sure that you are keeping a log of the names of the people you speak with, what department they are in, the date and also the time that you spoke to them. You never know when you might need this information for later.
Remember that when you call in to speak with a negotiator, make sure that you are not settling with just the voice mail. Go ahead and leave a message but you want to make sure that you are calling back a few times throughout the day, every day, until your questions and concerns are addressed. Do not allow them to forget about you. The more you call, the more answers you will get.
