With the high rise in foreclosures these days, even
those who do not invest in real estate are starting to hear the term
"real estate short sale" or "mortgage short sale." A simple definition
of a short sale of real estate is an investor or buyer making a deal
with the primary mortgage holder to accept less than the amount due on
a mortgage; rather than the lender taking over the property through the
foreclosure process and then ultimately loosing money on the property
by selling it at a foreclosure auction.
Once a property goes into
foreclosure the lender passes along the file they have on the property
over to their loss mitigation department. It is the loss mitigator's
job to deal with the foreclosure and help the lender to retain as much
money from the deal as possible. While the loss mitigation department
may not act like they want to conduct a mortgage short sale, the truth
of the matter is that generally they loose less money that way than
having to auction off the property on the courthouse steps.
Dealing
with a loss mitigator can be very challenging, especially to new real
estate investors. The best advice I can give you is to try and always
remember that it is in the loss mitigator's best interest to ultimately
deal with you. While they may act like they are not interested in
negotiating with you, they are from the first time you reach out and
contact them. For those who will not deal with you, there really is
nothing you can do but go find another deal to make and leave that one
on the table. There is nothing you can ultimately do about it and you
are much better off finding other deals which will make you money.
Many
real estate investors ask what is a reasonable offer to make to a
lender for a mortgage short sale? Generally the rule of thumb is about
80% of the current mortgage balance on the property. But, the absolute
rule is that you should never offer more money than you want to have
into the property, and never more than you think the property is worth
to work with and either sell or rent out.
By making a reasonable
short sale offer, and treating loss mitigators well, you can generally
close a deal with a mortgage short sale to your benefit.
Isn't
it time you learned how to capitalize on one of the best markets for
real estate investing that this country has ever seen? With the recent
flood of foreclosures now is the time to learn to invest correctly in
real estate from the hosts of the nation's leading show on real estate
investing, Judson and Lynn Voss. Visit http://www.yourrealestatefortunes.com and learn for free, the no-hype truth about choosing the right real estate investing strategy to start making you money, today.
