Foreclosure Short Sale – 3 Steps To Buying One
Have you wanted to buy a foreclosure short sale home but you weren’t quite sure where to start with this type of real estate purchase. There is definitely money to be made in short sales, and this article discusses some of the steps involved in purchasing them.
1. Locate potential foreclosure short sale properties.
When a lender starts foreclosure proceedings against a homeowner, they have to file the foreclosure notice with the local county courthouse, and also advertise it in the local papers before the public auction. So to start your search you want to head over to the courthouse and look up the public records for foreclosure notice filings and also regularly look in newspapers for foreclosure listings. Another easy way to find them is to on the internet in foreclosure listing sites like foreclosure.com.
2. Get in touch with the homeowners.
Once you’ve located the foreclosure property, you need to contact the owners and get some information about it, and then make an offer to buy the property as a foreclosure short sale. Some people may feel a bit hesitant about doing this but the homeowner may be grateful to have an offer that could save them from going through the full foreclosure process and the blemish that would leave on their credit record, so it is well worth approaching the owners with an offer. If they are happy with it then it’s time to
3. Contact the lender with your offer.
Foreclosure short sales save lenders a lot of time as well as the fees and costs incurred in the foreclosure process. You’ll need to contact the loss mitigator at the homeowner’s lending institution and deal directly with them as they are the decision makers for short sale transactions. When you make your offer you will need to have documentation with you such as a Purchase and Sale agreement, plus any research you’ve carried out regarding prices of homes recently sold in the area and the condition of the property you are interested in purchasing. The owners also need to submit a financial statement and hardship letter.
This article details just some of the steps involved in buying a foreclosure short sale home. If you want to know exactly what to do and say when approaching the homeowner and the lender, along with all the necessary documentation that you need to fill out, take a look at our recommended home study program. To avoid the common mistakes that newbie short sale buyers make go here now: www.foreclosuresrealestate.org/go/foreclosures.
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