Short Sale Goldmine - Step-By-Step Process
Topics: Real Estate, Building Wealth, Making Money, Entrepreneur
You have just found a short sale goldmine. In this article, I have described the step-by-step process that many professional real estate investors have paid at least $5,000 for. Use this information to make tens of thousands of dollars today.
With the recent explosion of foreclosures, many banks are hurting financially and do not want to foreclose on another property. A short sale is simply when the bank agrees to sell a house for less than what is owed. To find good short sale candidates, you need to subscribe to a list that provides Notice of Defaults. This list indicates which homeowners have defaulted on their loans and will probably be heading into foreclosure soon.
Step-by-Step Process
Step 1 - Get the sales comps to determine value and if this house is worth your time.
Step 2 - Get the deed. Use a Warranty Deed and transfer it to your Trust. If the owner does not give you the deed, tell him goodbye and go to the next deal. When you approach the bank, the first question they will ask is if you have the deed.
Step 3 - Call the Loss Mitigation department at the bank and request their short sale package. Make sure you talk to a live human being or use the contact name and fax number from the voicemail machine. Fax your cover sheet to the bank respectfully requesting a short sale package and reference their Notice of Default they sent to the seller. Make sure you tell them you are holding the deed in escrow, give the loan number and the Authorization to Release Form signed by the seller.
Step 4 - Get a signed sells contract with the price on it (make sure you are not the buyer). The buyer will be your Land Trust (e.g. 123 Main Street Land Trust). You should present yourself as the intermediator between the seller and the buyer. If you present yourself as the buyer, it is much harder to get the bank to work with you.
Step 5 - Do a title search to make sure you have a clean title.
Step 6 - Hardship letter from the homeowner that mentions the word bankruptcy.
Step 7 - Get a HUD-1 (settlement statement showing that seller is not making a profit and also indicates exactly how much the bank will net after closing costs, taxes, etc. are paid).
Step 8 - Financial Statement signed by seller showing they do not have any assets. This may include W-2 and any debts.
Step 9 - Repair spreadsheet showing all repairs that need to be done. Get a bid from a contractor showing estimated list and cost of repairs. Use retail repair prices the normal homeowner would pay for these items.
Step 10 - Include a note indicating the date the seller bought the house.
Step 11 - Include pictures of the house if it is in bad condition.
Step 12 - Express mail your short sale package to the bank.
Step 13 - Know your exit strategy. Are you going to retail or wholesale the house?
It normally takes 7-10 business days to get a response back from the bank after you send them the short sale package.
If the seller balks at you making a profit, tell them the bank has not accepted your offer yet. Furthermore, you have to make a profit or there is no reason to get involved. They will have a foreclosure on their credit for many years if nothing changes. You are there to help.
Houses with second mortgages on them are really good candidates because many times you can go the second lien holder and get a deep discount. If the house goes to foreclosure, the second lien holder will get completely wiped out and receive zero dollars for his/her lien.
Filing bankruptcy only temporarily pauses the foreclosure process, but does not stop it. However, the bankruptcy gives you a little more time to work the short sale angle.
You have been given a blueprint to succeed in the short sale business. The wise investor will make hundreds of thousands of dollars in the next few years. What you see today will not be here five to ten years down the road. How much of the pie are you going to take?
William Gross started his real estate investing career in Los Angeles in 1995. He is very successful at flipping houses for profit and is still very active. For helpful tips and information on real estate investing, visit www.thepowerfulinvestor.com.
Previous Articles Highlighter:
The Only Real Ways To Pay Off A Mortgage Early (1)
Ed Lathrop is a successful Real Estate investor. He has developed EzCalculator, which shows you how to save $100,000 on your mortgage. Come visit this free site at ezcalculator.com.
Things To Consider For Instant Car Insurance Quotes (2)
There are many ways to get an instant quote. But it would definitely save your precious time if you keep the necessary documentation ready with you. Documents like drivers license, vehicle registration no., previous insurance details, vehicle model and details prove handy during the interaction and are needed.
Small Business Finance Basics - Financial Ideas And Tips For Your Home Business (3)
Hopefully you're starting this business to last for a long time. It's a very good idea to put a smart small business finance accounting system into place from the beginning, and get it set up to grow with your business.
Using Candlestick Charts In Equity Trading (4)
Also, if there was no candlestick body and only a flat line with shadows on the top and bottom of the straight line, this is called a doji. In some cases the doji appears when a change of trend is about to take place with the stock.
Self Directed IRA Investing Can Increase Your ROI (5)
In order to fully realize your self directed IRA's potential, you will need to assess your personal retirement goals, objectives and level of tolerated risk. From there, you can decide which investment vehicles will fit your retirement needs.
House Mortgage And Retirement Plans And How They Come Together (6)
Wayne Miller has spotted major trend reversals prior to them happening such as the reverse in Crude Oil with Pres. Clinton was in office and around $10 per bl.; the reverse in Gold when it was around $240 an oz.; the Stock Market Crash of 2000 and more.
Do You Have Enough Money To Retire (7)
After all, if you began preparing for retirement in your early adult life and stayed with it, you will have a resource to retire on and that is a good thing.
Levels Of Retirement Planning That Can Work For You (8)
You can start finding those opportunities long before retirement so when you finally step out of the work world, expanding those hobbies and volunteer efforts is as natural as can be.
Bank Credit Card - How To Get One As Your Financial Back-Up? (9)
This is a great way to get a 0 APR credit card and start to build your own credit rating. Do Not Go For A Shopping Spree With Your Credit Card Okay, you have obtained a bank credit card and now have the freedom to spend up to your credit limit.
How To Secure Cheap Car Insurance (10)
You can always ask friends and other people who are more familiar to such services about any recommendations regarding the search and purchase of cheap car insurance. 5. As you finally buy a new policy, always intend to keep your responsibility.
Retirement Starts Early If You Desire To Retire With Money (11)
That is a time when the transition from teen years to family life is pretty all consuming. So it might be the responsibility of parents and older advisors to help youth see the value of starting to work on their retirement savings well in advance so they have a well developed program when their retirement years come along.
'Concern Noted' Over Lack Of Savings Awareness (12)
Such a figure is up by the 4.16 million noted during the previous half-year period. Mark Dawson writes for the Loan Arrangers. Where visitors can compare UK loans online, and apply for the best rate personal loans and the cheapest consolidation loans available to them.
Care Costs 'Are Big Financial Burdens' For Brits (13)
A cheap personal loan may also be of assistance for consumers looking to get their finances back on track, although it may be advisable for prospective borrowers to be honest about their intentions.
Teen Credit Card Debt Statistics: What Do They Show? (14)
If they cannot understand the concept and the consequences of card misuse, no improvement in the teen credit card debt statistics will happen. Teenagers need to understand the real value of money.
Special Tax Breaks For Foreclosures (15)
This form is Form 1099-C. Through this form, the individual will be able to show the IRS the amount of debt that was forgiven, as well as the fair market value of the property that was obtained through foreclosure.
Consolidate Debts? Tips To Find The Best Debt Consolidation Loan (16)
Whether the lender is FSA authorised: You will enjoy valuable consumer protections against unfair practices by opting for an FSA authorised lender, so make sure that you check that the lender you opt for is FSA authorised for your own protection.
Commercial Insurance For Private Space Travel A Serious Concern (17)
The spokesman added: "We provide insurance cover to people in 190 countries so it wouldn't be a giant leap to add outer space to that list". See how much you can save on commercial insurance with Autonet Insurance - www.autonetinsurance.co.uk.
Texas Economy Will Grow Throughout 2008 (18)
Texas, with the 2nd largest state economy in the U.S. and the 15th largest economy in the world, will record growth of about 2.2% annually, according to the Texas Workforce Commission.
Financial Rethink 'Could Help With Money Management' (19)
Out of these respondents more than a fifth (23 per cent) state they could be more than 500 pounds better off. Findings from the firm also showed that 13 per cent of people are to cut up their credit cards to help get to grips with spending.
Miles Credit Cards -- Beneficial To Many (20)
If you have a specific airline's miles credit card, you will need to redeem those miles with that airline. If you have a generic version, you will need to redeem the miles through the affiliated airlines.
Newer Articles Highlighter:
How To Achieve Harmonic Wealth (1)
But, unless you have happiness and contentment in all areas of life, what good does the money really do? At first, it may seem okay. But, after you have purchased everything you could ever want, with whom are you going to share your excitement.
Look For The Cheap Car Insurance Quotes (2)
This ensures that you find the best deal which definitely would save you money. Hope you find out the best deal in car insurance quotes. This is all for now.
Forex Forums Can Seriously Damage Your Wealth (3)
No of course they don't, they're too busy making money. Finally there is one other way in which forex forums can damage your wealth and that's by following systems given on forums.
Northern Rock - Shareholders Are Not Seduced By Virgin (4)
On 10 February 2008, several banks have offered to securities around one half of the loans provided by the government to Northern Rock. This means that the UK government would need to guarantee some GBP13 billion of bond issues as opposed to GBP25 billion.
Why Should You Invest For Your Future? (5)
Investment firms retain a small fee. Mutual funds generally come from many small investors. This setup allows small investors to access a wider range of securities that they might not otherwise be able to.
What You Can Learn From A Trader As An Investor (6)
The first and foremost thing you must realize before you start is that you have to leave your emotions and ego out of trading. A good trader has to his advantage over others that he doesn't take it personally if and when a trade goes against him.
How To Make A Smart Offer On A Home (7)
If the initial offer is too low, the sellers may come to the conclusion that that is all you can afford so they won't bother with a counteroffer. If the offer is reasonable, it will make the sellers more inclined to come to a decision that is mutually acceptable.
How About A Balloon Mortgage For You? (8)
The practice of mortgaging properties is followed in many countries, where home purchases are generally funded through mortgage. Balloon mortgages are quite popular amongst many home buyers. It has a shorter time period, having a term of five to seven years, but with the payment is based on a term of 30 years.
Orlando Preconstruction- Real Estate Investing For Dummies (9)
When he raises money by pre selling unconstructed units to 'preconstruction investors' he is able to achieve two things. One, he is able to get some ready money to start his development project and two, he gets credentials to prove to the bank that there are other people who believe in his project and have therefore made investments in it by buying property, even before it has been constructed.
Role Of Non Profit Financial Organization In Our Debt Problems (10)
J Amalorpava Mary is the owner of www.totalloansdirect.com, to get ride of all your debt problems and to find out a good debt consolidation loan or personal loan deal visit her site.
The Enactment Of The Fair Tax Plan - The First Twenty Years (11)
Perhaps the most influential lobbyist entities that were eliminated by the people through elections were those from foreign countries who had infiltrated themselves inside the political Washington crowd. As an example, the Chinese lobbying "agents" found that even our more questionable politicians had to get onboard with the Fair Tax or be dumped out of office.
Financing A Car - Will You Buy Or Lease? (12)
If you can stay within the stated mileage limits and keep the automobile in good condition throughout the duration of your lease, leasing is a reasonable option. If, on the other hand, you exceed the mileage limitation or if the car shows considerable wear and tear at the end of the lease, you may find yourself paying large end-of-lease costs.
When Will The California Housing Market Hit Bottom? (13)
Once the first surge of buyers starts to show confidence in the market, it's only up from there. We are likely to only see the bottom of the California real estate market in the rear-view mirror.
Orlando Real Estate- A Better Alternative For Investment Retirement Or Holidays (14)
A bit of cleaning and sprucing up the lawn and garden can greatly change the appearance and let you make a profit by selling it at a higher rate. Or if you wish to make a long-term investment, you can hold it and earn rental income by giving it on rent to tourists, additionally saving yourself huge amounts of money, even though you may be occupying the property yourself during short non-rental spells.
Breaking The Law For Peanuts (15)
Here is the exact wording that a borrower is asked to sign at the closing: I have read and understand this Statement of Applicant. I understand that the making of false certifications or declarations is a crime under section 1014 of Title 18 of the United States Code.
Rent Or Buy - Ask A Mortgage Broker (16)
With the right advice from a mortgage broker you can do your best to secure a good deal that you will be able to cope with for many years, unforeseen circumstances not taken into consideration.
How Legal Funding- Lawsuit Funding Helps The Plaintiffs? (17)
Legal Funding or Lawsuit funding are non-recourse transactions. Plaintiff pays back only if he/she wins or settles the lawsuit. If the plaintiff does not win their case, they do not owe any money to legal funding company.
Custom Homes In New Subdivisions (18)
By having a lot of custom home builders there are plenty of choices for a person who is looking to have a new home built. This helps to give options to people who are interested in moving into the area, and it also helps to boost the economy for all of the people who live here and in the surrounding area, which can be very important for everyone who lives in that community.
Airlines Credit Cards: Choosing The Best Fit (19)
But at a minimum, take the time to do an in-depth comparison of each offer to determine if it fits the bill best for you. Robert Alan is an editor for www.CreditCardAssist.com and frequently contributing writer on various credit card-related topics.
Locating The Best Schools In The Houston Area (20)
In Conroe, along with people who come here quite often, can encourage individuals to move to a specific area and decide that they are very happy there, in which case they will stay.