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Short Sale Investing: Purchase Your Future Home Way Under Present Market Value

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By : Trevor McNichols    99 or more times read
Short Sale investing begins with locating motivated sellers, then you or the seller has to call the mortgage bank to see if they'll be willing to entertain a Short Sale.

It is quite standard for a homeowner, who is behind on their payments, to connect with the bank and ask if they are prepared to entertain a Short Sale on the residence. More than likely the lender will say indeed. After that they will send the homeowner what is known as a “Short Sale Package.” If it is you rather than the homeowners who contacts the bank, before they will talk to you, you must submit an Authorization to Release Information Form to the bank.

For those who call the bank, just say something similar to the following: “Hi, my name is David and I’m not on the loan. I want to fax over an Authorization to Release Information Form allowing you permission to talk on the phone with me. What fax number do you want me to send it to?

Ask how much time should it take before I should be able to have a conversation with you? (Almost always within 24-48 hours). Obtain the name and phone number of the person you spoke with, then fax it to them at the number they provide you with. The Authorization To Release Information form needs to incorporate the property address, the loan number, your name and phone number, the date, along with the sellers Social Security number.

When the bank talks to you, explain the homeowners situation. Then actually tell them you are interested in purchasing the property and request if they would think about a Short Sale. If they say yes, request their Short Sale Package. It is going to include everything they are going to need.

Upon having the Short Sale Package ready, ask if they would like it sent to them in a professional binder, or if they would like it emailed back to them. You might do both! In the event you send a binder, make it a colorful, yet professional package so it stands apart on the pile on their desk!

In case you are working with a real estate agent, closing agent, Title Company or Closing Attorney, you will receive better cooperation if you write a letter to the lender giving them permission to talk with the distinct interested party with regards to the loan, but it's not necessary. Talking to you individually is ok, so long as you are comfortable and professional in doing so.

Take note: Prior to beginning the short sale process, it will be best for you to have previously gone through the loan qualifying process so you already know what your interest rate will be, that way once you choose the short sale home you're contemplating, you will be ready to move quickly when needed.

Short sale investing takes time, but if you are patient, you can make a great deal when you purchase a home on a Short Sale.

Knowing how to acquire a residence in this real estate market suggests purchasing a home way below current market value. It only makes sense to understand how to purchase a Home Short Sale.

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