Short sales are becoming more common in real estate, especially as owners continue to default on loans and banks continue to foreclose. A short sale is not a difficult idea because it merely involves selling the home or property for less than what is owed on the loan. The process is what makes a short sale difficult, especially if there are several parties involved.
The short sale business is not recommended for novices in the real estate business. Even real estate professionals and attorneys are not all familiar with the short sale process. There are actually real estate agents who specialize in distressed properties and short sales.
If you are looking to get into short sale investment, it would not be a bad idea to hire a real estate agent who has experience in the field so that you can avoid making mistakes. In short sales, it is the mistakes that end up costing you the deal or perhaps even thousands of dollars.
The point is to understand that it is not an easy process, and that this aspect of the real estate business is not for everyone. If you are a person who easily gets frustrated, then short sales are not your cup of tea. Short sales are time consuming and often frustrating, especially if you have put in a lot of time and effort into a deal, and it ends up falling through anyway.
This brings up another point to understand, and it is that the lender has final say on a short sale. If the lender decides, for whatever reason, not go through with the short sale, then the deal is over.
A short sale becomes especially difficult if there are several mortgages on the property, encumbrances and/or liens such as tax liens, labor liens, mechanics' liens, etc. The more people that are involved in the process, the less likely it is that it will go through.
You are also going to need as much time as possible to work the deal, which means finding properties with plenty of lead time before the Trustee Sale. The more time you have to work the deal, the better your chances are that it will go through.
Another point that you should become familiar with is that you need to be sure what you are getting into. You need to do your research or you may end up with a property that you may not be able to sell, which where a professional would come in real handy.
If you find someone with plenty of experience, he/she will probably be familiar with the people in the loss mitigation departments of the different lenders that you will be dealing with. A qualified professional will also know how to present the paperwork, and how to deal with all of the people involved.
The experience that you will gain will be invaluable when you decide to do it on your own. If you pay a professional to help you through, you might look at it as paying for your short sale education, while at the same time getting hands on training.
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