Why Do Banks Short Sale?

The property is in a poor condition
The mortgage is about to be foreclosed upon
The homeowner has proven hardship and has shown they cannot afford the mortgage payments
New homes in the area are being chosen over existing homes
The area or neighborhood has depreciated in value
The bank’s shareholders are concerned that there are too many defaulting loans on the books
Some banks need to have an amount equal to or up to 6 times the retail value of each REO “on hand”
An REO is seen as a liability, not an asset. Too many liabilities can be a huge liability and cause the business to go under.

Can I Short Sale a Nice Property?

Of course.

What Steps Do I Take to Complete A Successful Short Sale?

Find a property owner in distress
Put together a clean deal for the homeowner
Fill out the a sales contract for the amount you want to offer
Call the Loss Mitigation department of the bank or lender
Fax them the offer with the following: sales contract/purchase agreement, comps of the area, pictures if any.
A hardship letter from the homeowner needs to be sent to the lender

Real Estate Short Sale Guide