Investor · Fayetteville, NC · Member since 2015 · 55 posts · 13 votes
I have two sellers highly motivated to get rid of their properties. Both sellers have not made payments on their respective properties for a few years and owe the banks more than they are worth. One owner is currently looking into a modification loan and forgiveness on part of the amount owed. The other owner has not begun pursuing anything except calling me. My question, is there a way for me to make money by suggesting a short sale? Thanks
Unless you're a real estate agent and can perform the short sale yourself I don't foresee one paying a "fee" to take one on- they can be very tedious, time consuming and sometimes banks will reduce commissions which makes for a whole lot of work for little pay.
Now, if you could be the actual end buyer on the deal (short sale)- then that would be worth exploring.
I have tried to do one as well. Even though I have my real estate license all that the bank cared about was putting the property back onto the market to pay off as much of the loan balance as possible. In this case the home was worth about $65,000 and there was a mortgage for just over $100,000. Our offer as a wholesaler was even lower than the $65,000 so needless to say the bank has not called me yet, and I am not holding my breath. Not saying that it is not possible, because I have heard of people doing. In reality banks have been getting wise to the whole "short sale" transactions and it is too much of a loss for them.