I am new to real estate investing and in Fort Worth. I have been doing a lot of reading. I read a book on the Short Sale.....and I'm still a little confused on the process with each b/c it seems to different than on some of the other posts. From the book, I am under the impression that:
Discounting: The investor tries to negotiate with the lender to discount the mortgage to be bought by the investor. In the book, it said it was not a good idea to let the lender know you are an investor.
Short Sale: The homeowner has to negotiate. The book suggested to have the homeowner put you on the contacts for the mortgage so you could negotiate as a "friend".
First, I would like to know if this information is accurate or not. From previous posts on this site, I was thinking discounting is when you buy a discounted note of a lender and a short sale is when you get the lender to discount the note because the property value is less than the outstanding mortgage (would this be a process done by the owner/borrower or the investor/buyer??).
Second, What is the process with discounting and short sale. I know that you should first get them to sign the contract. Should you also get them to deed the property at the same time and hold the deed until the short sale/discount goes through?
Third, How do the guys out there experienced in doing short sales and discounting handle talking to lenders? Do you tell them you're an investor or just somebody helping out the homeowners?
Fourth, Is there a way to short sale the mortgage then take the existing sub2?
Thanks for your help,
TJ Carter
817.692.8661