How to Negotiate a Short Real Estate Sale
Short sales can save buyers money as well as help a seller avoid foreclosure on his property, which can damage credit ratings. Short sales let you purchase a property for less than the current amount owed. By working with the seller's bank and making a reasonable offer you can negotiate a short sale on a property in most instances.
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Instructions
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Determine what short sale properties are available in your desired location. Some banks may be willing to share this information, or you may find foreclosure listings in your area by doing a quick search of foreclosure websites.
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Look for homeowners that are currently three payments or more behind on their mortgage. Finding a home not yet owned by the bank may help speed the process as the homeowner may be anxious to sell and the bank will want to recoup the money they're owed.
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Gather as much information as you can about the property, including information about the sellers.
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Contact the current lender. Keep the borrower's information and proposed offer handy as you'll likely discuss this with the bank's representative. At the end of the conversation you'll want the representative to agree to send you an information packet on how to close the short sale of the property.
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Fill out and submit all the paperwork listed in the short sale packet you received from the bank. If you are unsure how to complete all of the paperwork, an escrow officer may be able to help for a small fee. The paperwork may be extensive and require additional information from the current owner, but it can also lead to a great deal on a property so keep the end goal in mind.
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Call the bank and ensure all of the information has been received and that they don't require any additional information. Waiting for an answer may take weeks but continue to check the progress of the short sale.
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Tips & Warnings
If the property is approaching its auction date, ask for an extension from the lender so your offer can be reviewed.
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Comments
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that date should have been 8/17/11 and I am paying cash for the house.
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I bought a short sale 6/17/11and I received an email from the listing agent saying it was being sent to the negotiators and is in the final stage. does that mean it is getting close to closing?
