Short Sales: Closing the Homeowner and the Bank

Getting Started in Short Sales

With the real estate market trending the way it is, many agents are complaining about not being able to find enough deals to keep food on the table. Although there is a surplus of homes to sell, there is not a surplus of interested or qualified buyers. Real estate agents find themselves doing a lot more open houses and a lot less contracts.
Fortunately, if you work the short sale angle, you won't have these same hang-ups and downfalls. Instead, you'll have more deals than you know what to do with.

Closing the Home Owners

The homeowner is the lynchpin in the operation. If you don't have them on your side, if you haven't persuaded them that you are the solution to their problem, you don't have a deal. Because you're providing them an excellent out, the possibility of staying in their home, a save to their credit report, and most importantly, their dignity, it becomes a nobrainer to the homeowner, that this is their best option.

Closing the Bank

With short sales, the biggest problem in the past was getting the lender to accept less money than what was owed on the house. However, with so many houses now going into foreclosure, banks have no other choice but to begin negotiating for less money and on your terms.

There are a lot of motivations behind why the bank will accept your offer. Below are just some of the main arguments you can make when approaching the lender.

• The homeowner is several months behind in their mortgage
• The property is in poor condition
• Homebuyers are more interested in new homes being built in the area than existing homes
• The neighborhood has depreciated in value

To most, physical properties are tremendous assets, to banks they are significant liabilities. Just look at how many banks, during this current foreclosure crisis, are letting jobs go and looking to China for escape plans. They simply can't take on any more properties—this alone is one of your best allies.

To be sure your offer is accepted make sure you get the bank the following forms:

Authorization form, Listing agreement, Financial form, Hardship letter (signed and dated), 2 months bank statements and bank stubs, 2 years tax returns, purchase contract, HUD/Net sheet, Comps, List of repairs.

For more informations on short sales, go to http://www.imthesolutionsilver.com