A Free Q & A "How to Buy Short Sale/Pre-Foreclosure Properties"   

 

What is a Short Sale?

A “Short Sale” is a NEGOTIATED sale of a home when the homeowner owes more on the property than what’s its worth and the lender accepts the offer.

 

 

Did you know that California has the second highest rate of filings in the country per report issued in the month of July from RealtyTrac, Inc.? There were $38,801 foreclosure filings during the month of June – the most of any state for the sixth month in a row and more than three times the number reported in June 2006. With one foreclosure filing for every 315 household that is more than the national average?

 

So with that in mind, do you THINK that the Lenders/Banks may want to do more Short Sales?

 

Why would a Lender accept less than what they are owed – accepting a Short Pay now vs. Complete a Foreclosure?

 

Because lenders/banks are not in the Real Estate Business but in the Interest Earning business. They look for what will give them the greatest return of principal in the shortest amount of time so they can put that money out and earn interest on it again. Intuitional lenders have regulations that require them to set-aside (tie-up) cash and assets on their balance sheet to off-set non-performing loans (loans in default). The sooner they can get these loans off their balance sheets, they can free up those cash and assets again – even if they have to book a loss on the loan, it may be better than tying up the cash and assets while they go through the foreclosure process, get the house ready to sell by doing any possible repair work and they still have to pay all the fees that incurred like back taxes, attorney fees, title and escrow fees, and etc.

 

How Do I Find Short Sale Properties?

  1. Send out Postcards to homeowners in the neighborhoods you are interested in
  2. Place banner ads out
  3. Door Knocking – homes that have been on the market over 60 days, that look in disrepair
  4. Look in the paper for homes advertised by wholesalers investors or realtors
  5. MLS “Property description” sometimes have notes “Short Sale – Subject to Lender’s Approval”
  6. Use a realtor that has an inventory or access to Short Sale Properties

How Do I Buy Short Sale Properties?

 

1.  First thing is to find out if foreclosure proceedings have started – Notice of Default    (normally will be sent to a borrower after 3 consecutive missed payments) 90 days later the Sale Date is set and the owner have 5 business days before sale date to re-instate the loan or get property sold

2.  Have the seller(s)/owners sign an authorization to release information so that you can talk  to the bank on their behalf

3.  Call the lender and ask for their Short Sale Package

4.  Put the Short Sale Package together

 

 

CALL ME, Taunee at (818) 679-6238 or EMAIL ME at taunee@asktaunee.com if you will like me to help you FIND,BUY,SELL and FINANCE your SHORT SALE Properties.