How to Negotiate Short Sales
If you are the owner of a piece of real estate--including your home--that is facing the prospect of foreclosure, one alternative course that you can consider pursuing is negotiating a short sale of your property. A short sale is one in which the mortgage lender agrees to discount the existing loan to a point that will allow for a sales price to be set below the actual amount that was due and owing on that mortgage loan.
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Things You'll Need
- Discounted loan agreement Written advertisement marketing the real estate
Instructions
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Contact the mortgage lender and advise of your desire to undertake a short sale on a piece of real estate in which it has an interest. Without the cooperation of the mortgage lender, it is not possible to effectively undertake a short sale.
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Determine the parameters in which the mortgage lender is willing to deal when it comes to discounting the outstanding loan. The lender's flexibility in this area will dictate the ultimate bottom line price that can be accepted in regard to the sale of the property.
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Market the real estate as you would with any other property to be sold. Utilize the various promotional tools available to you, including the myriad resources that can be found on the Internet and Web.
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Focus your attention on resources through which you can connect with potential buyers who are interested in purchasing distressed real estate. (Distressed refers not to the physical condition of the property but the fact that the seller is motivated to conclude a transaction quickly for any number of reasons.) For example, there are specialized websites in operation that connect highly motivated sellers with buyers interested in purchasing distressed properties.
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Do not tip your hand when you begin negotiating with a potential buyer. In other words, do not tell the prospective purchaser that you obtained an agreement from the current mortgage lender to discount the loan. If at all possible, even at the 11th hour, you will want to attempt to get the best possible price for the real estate.
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