Question: How many of you have actually negotiated a short sale?

Comments(5)

• 
  cmon10120th March, 2003

  Hi CC
  I am still a newbie myself so my take on short sales may not be accurate..but it seems to be a good observation..I read all the posts on this forum daily and have come to realize that short sales in this day and time are very difficult to accomplish..most banks I feel are more interested in making a profit off these properties than getting them off their books..as in the past
  I dont know if this is from these asset liquidation companies have weaseled their way into the system and convinced the banks that they can sell these props and make them money..or new bank employees trying to make a name for themselves by making a profit for the bank
  all in all, I see short sales as virtually impossible feat for the newbie investor and a very hard achievement for even the seasoned ones...I think most successful deals are done with small banks and lenders and not the big companies...that's just my observation though
  Chris

• 
  alarson20th March, 2003

  To make it short and sweet, the first thing you have to do is request a short sale package, and do EVERYTHING the lender tells you to. Nothing more, nothing less. That's the key, if you omit anything, they won't process the request.
  
  Every lender is different. Most will deal, some won't. But call and ask for a SHORT SALE PACKAGE after you get an authorization from the owner. Then go from there and make it neat, complete, and accurate.
  
  Good luck!

• 
  TheShortSalePro21st March, 2003

  I've been working short sales for more than 25 years. On the consumer side, I've put them together for individual and portfolio Investors, as well as distressed Homeowners. On the Corporate side, I worked for a major mortgage loan servicer and devised a cookie cutter approach to structure and analyze a potential short sale's cost benefit.
  
  Although the specific, lender imposed criteria for short sale consideration is constantly changing, the basic elements remain unchanged. I view the Proposal process as more of an art than a science.
  
  While the use of a Short Sale technique isn't appropriate in every scenario, it is a valuable tool to lean to use. Will it make you rich? No. But an understanding of the process will help you close deals that others are afraid to touch.
  
  When there are deals aplenty, short sales may not be the best use of your time. But when deals are scarce, you'll always have work.

• 
  CCinWashington21st March, 2003

  Thank you for your input. I'm going to continue until I'm wildly successful, with or without short sales! I really love this website.

• 
  jziproperties22nd March, 2003

  If there is one thing I learned in RE investing so far is that...
  1. There are absolutes
  2. Everything is negotiable
  3. Nothing beats school of hard knocks
  4. Diversify/Be flexible
  
  We submitted a bid on a 2 unit REO for 1/2 the original list to an outfit that sells for Freddie mac via local RE agent. Of course this bid came in several months from the original list. It went through 2 price reductions. Being the newbies we were, we decided to lowball it. Well we lost the deal to an experienced large local RE broker. Why?
  Same $ bid. But we needed 30 days to close...they could close immediately... or so we were told..
  (I 'd hate to think there was any impropriaty as the agant did say she has sold several reo's to this broker/buyer!)
  
  Well the point is that even the large outfits will deal...but it all depends...and we learned alot by just getting in there! see 1, 2 , 3 & 4 above.
  
  also go to www.reonetwork.com
  Lender (you too) resource for finding agents in your market that specialize in these to manage/sell.