Short Sale Process

Foreclosures, Short Sales, Tax Foreclosures
1

I would like to focus on finding a prospective property for a short sale. I want to keep this as simple as possible so I am looking for advice as to what I should do for the next 7 days to find this property? What is the best way I can spend my time in the next few days? Thank you for your response to my question.

Brian

2

Easiest way is to match the public record of a foreclosure with the MLS (multiple listing service) entry that Realtors use. You know these people are eager to sell their property and in most cases will take a loss at the sale because of agent commissions and closing cost. So you approach these people with an option of a short sale. Short sale is nice alternative in this situation because:

  1. The owners are leaving the home or will leave the home once sold
  2. They will help you sell it to a third buyer and work with you.
  3. They don’t have to pay anything to get out of this situation and might earn a thousand dollars if they have a FHA loan. In some cases, you buy personal property from them at an inflated price to sweeten the deal for them.

The downside is that they might be 1099ed for the difference. How I counter that is that I tell them if their home doesn’t sell and it goes into foreclosure, they could still be held responsible for the difference and I also let them know that I will try to buy their note first before I do a short sale.

Now my problem is how to bypass the realtor so I don’t have to pay him/her off!

Regards

3

Several times each month there are sheriff sales in our area. Is that what you mean by public records of forclosures? If so, isn’t the lender now in control of the property if it is going to the sheriff’s sale?

Thanks!

4

No, before it gets to that point. I believe you’re in a judicial foreclosure state so you have to keep an eye out for something called a les pendis (sp?).

Regards