If you are beginning to invest in real estate, short sales may be a good place to start. The development of the short sale package is in general simple. After you have successfully negotiated the purchase price with the seller , you ought to design your package so that the loss mitigation officer at the bank fully understands the trade off between accepting and rejecting your short sale purchase offer. For the reason that 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. For the reason that 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.
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. Find out what the bank needs and expects in a short sale package as well as any specific details that will help the short sale purchase offer to be accepted.
After discussing the short sale process with the loss alleviation officer, start building your short sale 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. Also bring in an appraiser to give you a true market value estimation of the property. This, as well as letters of hardship from the property owner need to go into the short sale package
The next step is simply to submit your short sale package to the lender and wait. It will now be up to the lender to accept the offer, or reject it based upon specific reasons. 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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