Many investors ask how can they use a land trust when buying a short sale? Without getting to involved in land trusts lets just say the reasons for using the land trust are privacy, 1st level of asset protection, and a reduction of liability. For the record I am a big believer in both asset protection and land trusts. Continue reading Using a Land Trust in a Short Sale
Lenders require a Financial Statement be submitted with short sale packages to show the borrower is financially unable to pay on the loan. Always ask the seller to complete the financial statement to the best of their ability.
When considering a short sale the lender must take into account the current condition of the property. If the property does not sell at foreclosure sale they will be left with the property and the decision to repair the property or to sell the property at a discounted price. As a general rule lenders do not like to invest money into REO’s and do not want to sink more money into repair costs. Continue reading Short Sale Repair Cost Estimates
Have you ever wanted to know the rules the loss mitigator is following when you are negotiating a short sale? Here’s the rules from Fannie Mae that should be very enlightening if you take the time to read them.
NOTE: These are merely guidelines and because a lender has a guideline does not mean it has to be followed.
With every short sale package the 1st and most 2nd lenders will request and estimated Settlement Statement showing how much they are going to receive from the short sale. The two things the lenders are most interested in is
1) how much are they going to receive and
2) that the seller does not get any money. Their position is simply this: We’re taking a loss on the loan so the seller better not get anything. Continue reading HUD 1 Settlement Statement
Lenders will request a signed Authorization Form from the seller before communicating with you. You are much better off using a Limited Power Of Attorney(POA) instead! Continue reading Power of Attorney
This is part of an abundance of evidence to support your short sale offer. Be sure to Include the following: Continue reading Short Sale Offer & Explanation
The purchase and sale agreement is a signed contract between you and the owner of the property stating the terms and conditions of the sale. The purchase and sale agreement should include the following statement or one very similar:
Approach a short sale as if you are an attorney preparing for a big case. It is your job to provide and abundance of evidence to support the lender accepting your short sale. It should be your goal to do the lender’s job for them thereby making it easy to accept your short sale offer.
What To Include In A Short Sale Package
Here's a quick checklist from our software of the items you should provide when submitting a short sale to the lender.
A real estate agent is NOT needed for a short sale. The sad truth is most real estate agents will unknowingly hurt you in a short sale because they do not know or understand the short sale process. Just by reading the information at this website your knowledge is superior. Unless a Realtor is already involved in the transaction you’re better off without one.