Short Sale Negotiation

Negotiation through the loss mitigation department will be the key factor in getting your new home at a deep discount.

If opportunities emerge in which lenders can sell distressed properties without registering big losses, they will do it.

For example, consider that a homeowner with a $200,000 mortgage is late on his or her loan payments and is facing foreclosure. With the consent of the homeowner, you offer his or her lender $150,000 as full payment for the loan, which is accepted. That means you instantly save $50,000 on a real estate investment.

This is a short sale.

Getting started

Negotiating a short sale with a lender can be a complicated. But with careful research and patience, it is possible for you to earn big profits with short sale deals. Naturally, closing the first one will be the most challenging.

The first step in this process is to identify potential investment opportunities on Foreclosure.com, which offers more than 1.8 million listings across the nation.

Preforeclosure properties are ideal because you can make more money with them versus homes that are already bank-owned.

To be most successful, we recommend reaching out to homeowners who are more than three payments behind on their mortgages. At this point, each of these homeowners has received a Notice of Default (NOD) and is very close to losing their home. Time is running out and the chances of them curing the loans and making up the back payments are slim.

The homeowners understand this and may be grateful for your assistance. The lenders understand this, too, and are motivated to recoup their losses as soon as possible.