All Forum Posts by: Antonio Lopez

Pros of a short sale for distressed homeowner are (in FL):

- Avoid foreclosure

- It's a permanent solution

- Potential for HAFA relocation assistance versus getting kicked out by the bank

- Good negotiators get the bank to waive their right to a deficiency judgment

- Credit impact is low compared to foreclosure. What really kills them are all the missed payments up to the point of the short sale is successfully closed

- Credit reports show the mortgage as an account paid in full

- Can buy a new house within one day of a short sale

- Eligible for an FHA loan within 2 years versus 7 years with foreclosure

- Keep government security clearance

- Get your dream job because they're are no foreclosure on your credit history (yes, companies can check your credit history)

- Pay less on every loan you get for the rest of your life versus elevated interest rates with a foreclosure on your credit history

Pros for an investor buying short sales:

- Bank usually takes a discounted amount for a property

- Can control the offer amount and the way its negotiated

- Can control your deposit amount (no need for +10% down payment)

- Good negotiators can get you a good deal

- Can send in a contractors report for further discounts

- Plenty of people that need help = lots of potential deals to be made.

- Be a hero to a family that thought foreclosure was the only option out!

People seem afraid of short sales because there is a lot of uncertainty regarding what price the bank will ask for. The bank is associated with money and power and that might intimidate some folks. When you consider that negotiating with a bank is like dealing with someone that has (basically) unlimited money and resources, you can see why some people might just not want to deal with a bank at all.

Homeowners may be afraid of selling their house and have substantiated fears of where they will live next and how they will pay for the deposit, 1st and 2nd months rent.

Another reason may be that short sales generally take anywhere from 3 to 6 months and can possibly take longer leaving a potential buyer hanging for longer than expected (as an investor, this shouldn't matter as you should be filling up your pipeline with deals)

That's all I can think of for now. Check out my page AntlopMiami.com. I am the premiere short sale buyer and short sale specialist in Miami. 

Thank you for reading.

I understand the post is a few years old but I couldn't find it through 6510.

I used code 87420406 which is "Real Estate Consulting" on the SIC.

Thanks Mike for the link on that great article!

The homeowner has to be motivated by something to put the house under contract with a wholesaler. You have to find that motivation. There's many reasons the homeowner may be motivated to sell. 

For example, he might be going through foreclosure and needs to sell his house before the bank forecloses. The homeowners might be divorcing and need to sell their house. There might have been a job transfer or job loss. 

When you come to an agreement with the homeowner on price, you have to put in writing aka a contract. That contract is taken to a title company that will research the title to the property you are buying. Nothing would be worse than handing over a bag of cash and getting stuck with a property for which bad title work has been done. This is the reason it is impossible to give a homeowner cash right away. Encumbrances on a title can become a nightmare! 

In FL, the FAR-BAR contract has a particular section regarding assainability that you can just check off. Check with your local real estate investors association. 

If double escrow means the same as a a double closing, then you will need a contract from the seller to you and a contract between you and the end buyer (A to B, then B to C and you are B).

Hope that helps. 

Thanks. I'm getting my mailing campaign together on Monday. 

What kind of leads are you going after?

Hey Daniel, welcome to the site! 

I've lived in Miami Lakes my whole life. I'm Short Sale Specialist.

Aside from online resources on BP, check out your local REIA's. There's a lot of people with experience you can learn from and it's a great environment for networking. I personally like the Broward Real Estate Investor's Association. Them and Palm Beach are the only national charters in S. FL.

What you will need:

1. Marketing List

2. Real Estate Agent

3. Proof of Funds or Cash in Bank

4. Short Sale Negotiators (May be the title company)

5. Title company

6. Buyer's List

First thing you do is market to your target market i.e. pre-foreclosure properties.

Next find a real estate agent willing to work with you on your short sales.

Once you find a homeowner willing to sell you the property through short sale, get an agreement together with them. Have them sign the exclusive right of sale agreement for your agent and the as-is sales agreement.

Next make sure you have all the paperwork required from the bank. The negotiator/title company should be able to guide you with this.

After the bank receives the short sale package the bank will send a BPO agent to assess the value of the property.

After this, the negotiations begin. Make sure your negotiators are good.

You should receive an Approval from the bank with the amount they want. This is the important part because your contract with the homeowner becomes an equitable interest in the property and you should be able to wholesale it. Now is the time to market to your buyer's list! Some details that you want in that approval are the waiver of deficiency and hopefully some relocation funds for you seller.

If you can't find a buyer, market the property as an approved short sale for the seller's sake and because its the right thing to do.

If the price is still too high and you can't sell it, you want to have an inspection done by a trusted contractor. Use that report to negotiate and send it in to the bank. Your negotiators can help with the submission of the contractor's report.

I believe every state is different. Id check with the local REIA. I hope that helps.