Negotiating a Short Sale?

Foreclosures, Short Sales, Tax Foreclosures
1

Hello everyone, My name is Omar and I would like to say thank you in advance for all of the information that is being shared here. I have gained such a wealth of information to my many inqiures.
To my question, I would like to know if anyone can give me some advice on negotiating with a distressed owner as well as the bank in the short sale process.

2

I saw your post and thought that I might be able to help you out. I’ve done several short sales this year all ranging between $20,000-$35,000 in profit. I currently have a deal on the table that if all goes well will be roughly a $80,000 profit margin. I’ve found that as I improve my communication and negotiating skills with both the homeowner and lender my deals close much faster and easier. I am also able to weed out potential time wasters and only focus on deals that I think have a strong potential to be profitable. Here is an interesting article about negotiating with the lender that may be of interest to you.

http://www.shortsaledeals.com/indexnegotiateashortsale.htm

I also had another link that talked about negotiating with the homeowner but I am unable to find it. Once I do I will post it for you. Please let me know if I can be of any further assistance.

John

3

Here is the other link that I was talking about.

http://www.shortsaledeals.com/Let’s%20Get%20Started.htm

You will have to copy and paste the link into your browser.

4

Great articles thanks for sharing it, I have a question for you are you contact the banks directly what is the process for dealing with the bank. thanks

Michelle

5

Your first point of contact is the homeowner facing foreclosure. Once they agree to allow you to attempt a short sale then you will need a letter of authorization to speak and negotiate directly with the lender. Since the property still belongs to the homeowner you have to deal with them first.

6

Any idea if lenders come after the original mortgageee for a deficiency judgement after the short sale, or is absolving the original mortgagee from additional liability part of the negotiation?

Thanks,
Joseph

7

The IRS considers the forgiven amount as taxable income. Therefore, the homeowner will receive a Form 1099 at the end of the year for the specific amount of the discount. However, it is also possible for the forgiven amount to be excused either in whole or partially by the IRS.