Building A Short Sale Package

Investing in short sales is a good way to profit in real estate and the short sale package is pretty straightforward to develop. After you have effectively negotiated the purchase price with the seller , you should start working with the lender to develop a short sale package. Because 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.

To get started developing your short sale package, get the loan number and permission from the property owner to contact the lender. Since of the recent market shift, finding the actual note holder may be challenging. Regardless, find out who the lender is and get written permission from the property owner to contact the lender to discuss the note.

Contact the loss mitigation department of the lender who holds the note and discuss your plans with the officer. Determine what information the bank will need in order to make a decision on the short sale package.

After discussing the short sale process with the loss alleviation officer, start building your short sale package. As this is a short sale, you will need to give sufficient proof that the home is not worth what is currently owed on the mortgage. To help build your substantiation, bring in appraisers and contractors to give an estimate to the cost of rehabbing the property. Also bring in an appraiser to give you a true market value estimation of the property. These, as well as letters of hardship from the property owner need to go into the short sale package

After completing the short sale package, you simply submit it and wait. Depending on a number of factors, the lender may accept or reject your offer. However, if you have done your due diligence, and the home is in pre foreclosure, the chances of the bank accepting your short sale offer are relatively high.

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Tags: finance, foreclosed homes, foreclosure, investment property, real estate, short sale package, short selling