Newbie VERY interested in short sales
Dwan's articles on ss are so informative!
We are just getting started in REI and look forward to the time when we have some cash to work with to ss 1st mortgages for a nice profit. For now, it seems that most of the leads we're getting are folks with a 2nd that would definitely need to be short saled before the deal would be any good.
I have a couple of questions regarding ss the 2nd. Is there standard "Authorization to Release" form, or do you just type something up? Most of these homes are in good shape, so we won't have any leverage with stating a condition of disrepair.
Any tips specific to ss 2nds that anyone can give us would be greatly appreciated. We are excited to do our first deal and become official REIs.
A short sale acquisition technique isn't applicable in all, or even most situations.
The key to successful short sales is to first prequalify the ss candidate. The first issue is to determine if the Seller is eligible for ss consideration by the mortgagee(s). If the property condition is reasonable and marketable, you've got to create some other type of leverage (financial) to use in your proposal.
If you can't justify any reason why the mortgagee(s) should extend a discount, then you'll be wasting your time in pursuit of a short.
crf3boys -
My advice to you would be to make an investment into Dwan & Sharon's short sale course. It's the best course on short sales that I know out there. Happy Investing
Thanks for the advice. Both of these houses are about to be foreclosed on. I thought the banks with the 2nd would be happy to ss for something, instead of getting nothing in the end. Both homes are also financed to their maximum value. The sellers would have to come up with cash to sell their homes with a realtor (which is why they're facing foreclosure). So I guess there is financial leverage there.
Also, I am very interested in taking Dwan and Sharon's course. We've already invested a good chunk in a "Subject To" course and a Lease/Option course. We really want to do a deal first, to recoup some of our investment, and to avoid getting into the trap of just educating ourselves, but not taking any action.
Thanks again for your replies!
Were you successful with the banks holding the 2nds?
Dan in Cleveland