Real Estate Short Sales – Avoid These Mistakes
There’s a lot of money to be made buying foreclosure property and one of the most lucrative is real estate short sales. However this area of property acquisition is a little different to normal foreclosure procedures so you want to know as much as you can about the process and avoid these common mistakes.Real estate short sales take place when a lender agrees to sell a home for less than what is still owed on it.
In order for the lender to consider a short sale, the current owners have to prove that they can no longer afford to pay back their loan. An area that a lot of newbies tend to forget when approaching the lender with their offer is to make sure that the owners have submitted a financial statement and a hardship letter to prove their case. Make sure you don’t make this mistake and make sure the owners have submitted these forms, otherwise your offer will be rejected.
Another common mistake is to approach the lender without doing enough research on the property. The lender wants to know things like the market value of similar properties in the area, the condition the home is in and how much is still owed on the property.
Another mistake you don’t want to make when buying real estate short sales is to approach the wrong person. You want to contact the loss mitigation section and ask to speak with the final decision maker. A short sale can take 4-6 weeks to process, however by dealing directly with the person who has the authority to accept or reject your offer, the transaction will be settled promptly and not drag on for months.
To give you the confidence to you know exactly what to do and say when purchasing real estate short sales, we suggest you look at our recommended home study course. It’s an affordable program that takes you by the hand and shows you step-by-step how to buy real estate short sales. Click here to have a look: www.foreclosuresrealestate.org/go/foreclosures.
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