What Can An Investor Guarantee A Homeowner Facing Foreclosure That Wants To Do A Short Sale?

Answer: Absolutely nothing!

The lender has no obligation to accept a short sale. When working with homeowners let them know you will do your best to get a short sale accepted but you are not able to guarantee any results because there is no way to force a lender to accept a short sale.

With honest and proper communication in the beginning you are preparing the homeowner for the possibility of the foreclosure. Let the seller know that you must invest your time, money, knowledge and resources when working on short sales and that the only way you profit is by completing a short sale.

Some lenders will be easy to work with and recognize that your short sale offer is a better alternative then foreclosing on the property then having to sell the property as an REO (Real Estate Owned). Other lenders will defy logic and be nearly impossible to work with on a short sale. The truth is you never know what a lender will do from one week to the next.

The rule of thumb is when working with owners be brutally honest about short sales, foreclosure, and the short sale process. You are much better off in the long run and I’ve found that most sellers find honesty a refreshingly new practice in this day and age.

See the “What to Include Checklist” for the necessary documents.