Short Sale question??// NEED HELP PLEASE // Any and all advice would be great!

Foreclosures, Short Sales, Tax Foreclosures
1

What do you think about having the owners who are interested in doing the short sale sign a quick claim deed taking them off title and me on? I can sit on the paperwork and not record the deed until I know the house will be able to sell as a short sale so I don’t pay the cost of recording if it doesn’t sell. Before the house sells I would then add a deed of trust for 20K payable to my company. That way I can make some commission on the deal and give some of the money to the old owners when the house sells. ???

My main question is how do I make money on short sales with out actually buying the house? I am not a real estate agent so I can’t make money that I know of, by selling the house to a third party.

What is the main way of making money with short sales when you don’t actually want to buy the property? I want to be able to negotiate the deal for the owner and sell to someone else make some money and get out. Any and all thoughts would be greatly appreciated.
:banghead

2

The best way to make money on a short sale without having to buy the house is to assign the purchase agreement to an end buyer. However, some banks can be a bit tricky getting the assignable contract past the loss mitigation department.

3

We faced the same questions when we first started doing short sales about 5 years ago. Our process has evolved to where we are now utilizing opitions rather than Land Trusts or Quit Claims to do our deals. The structure is a little complicated and involves recording a Memorandum of Option but the banks see to buy it and we have been able to make some fairly decent spreads when we can find an end buyer for the property.