Real Estate Investing And Short Sale Packages

For many seasoned investors, assembling a short sale package is a simple procedure. After agreeing on an suitable price with the property owner, you ought to design your package so that the loss alleviation officer at the bank fully understands the trade off between accepting and rejecting your short sale purchase offer. As the ultimate goal is to get the bank to accept your offer, you should be in contact with the lender well before you begin assembling your short sale package.

Getting started is easy, simply get the loan number and permission from the property owner to contact the lender. As of the recent market shift, finding the actual note holder may be challenging. Regardless, find out who the lender is and get written permission from the property owner to contact the lender to discuss the note.

Get in contact with the bank who controls the mortgage and determine who would be responsible for allowing the deal to go through. This is typically a loss mitigation officer. Find out what the bank needs and expects in a short sale package as well as any specific details that will help the short sale purchase offer to be accepted.

Once you have found out what the bank needs, start building a short sale package that will meet those needs. Because this is a short sale, you need to provide as much proof as possible that the value of the home is well below that of the current mortgage. To help build your substantiation, bring in appraisers and contractors to give an estimate to the cost of rehabbing the property. Also bring in an appraiser to give you a true market value estimation of the property. These, as well as letters of hardship from the property owner need to go into the short sale package

Once the package is completed, submit it to the lender for review. It will now be up to the lender to accept the offer, or reject it based upon specific reasons. However, if you have done your due diligence, and the home is in pre foreclosure, the chances of the bank accepting your short sale offer are relatively high.

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