Creating A Short Sale Package

Investing in short sales is a fine way to gain in real estate and the short sale package is pretty simple to develop. After you have successfully negotiated the acquisition price with the seller , you should design your package so that the loss mitigation officer at the bank fully understands the trade off between accepting and rejecting your short sale purchase offer. As the lender makes the final decision on the deal, you should be in contact with their loss mitigation department immediately.

To get started developing your short sale package, find out from the property owner who currently holds the note on the mortgage. This may be challenging as a number of mortgages have been bought and sold and bought again. Regardless, find out who the lender is and get written permission from the property owner to contact the lender to discuss the note.

Get in contact with the bank who controls the mortgage and determine who would be responsible for allowing the deal to go through. This is typically a loss mitigation officer. Determine what information the bank will need in order to make a decision on the short sale package.

Once you have found out what the bank needs, start building a short sale package that will meet those needs. Because this is a short sale, you need to provide as much proof as possible that the value of the home is well below that of the current mortgage. To help build your substantiation, bring in appraisers and contractors to give an estimate to the cost of rehabbing the property. Also bring in an appraiser to give you a true market value estimation of the property. This data, along with letters from the homeowner stating that they can no longer afford to pay the mortgage must be included in your short sale package.

Once the package is completed, submit it to the lender for review. Depending on a number of factors, the lender may accept or reject your offer. However, if you have done your due diligence, and the home is in pre foreclosure, the chances of the bank accepting your short sale offer are relatively high.

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