Hello neighbors,

With short sales being pretty prominent today in the real estate market, many buyers are cashing in on some great deals. With more and more homeowners finding themselves in the market to sale, short sales are significantly rising and seems to be the way to go. Take a look at a few helpful hints on how you can find a great short sale deal of your own.

Finding a Short Sale Property:

Short sale listings are typically listed by real estate agents and can be found on local sites as well as MLS feeds. In addition, key phrases such as: subject to bank approval, preapproved by bank, and headed for auction are clues that a property may be listed as a short sale.

Choosing a Real Estate Professional:

When choosing an agent, make sure to select someone with short sale experience. Because the short sale process is more tedious, having a real estate professional that is trained and knowledgeable about short sales will prove to be very beneficial.

Assess the Property's Mortgage and Liens:

A knowledgeable agent will be very beneficial in determining how much the property's mortgage is worth. You will need to find out how much has been paid by the current owners and when it was paid. In addition, you will need to determine the amount of liens on the property. Last but not least you will need to find out which lender is the primary lien holder and check out other sales in the area.

Get a Home Inspection:

Because short sales are normally sold as is, it will be very beneficial to have a complete home inspection before signing the dotted line. If you purchase a home through a short sale but later find out about major/expensive repairs then you're not really saving any money.

Write a Complete Offer:

The lender will actually determine whether or not your offer is accepted, not the owner. With that being said, take it upon yourself to write a short sale offer and be sure to include the following: cover letter, signed owner/borrower short sale purchase agreement, seller hardship letter, seller payroll stubs, two years of seller tax returns, market comparables, HUD-1 closing net sheet, repair cost estimate, and pictures of the property.

Negotiate:

Like with any deal, always be open to negotiations. If your first written offer is rejected, you will need to come back with an even higher offer. You should be mentally prepared to make higher offers or walk away if the price doesn't agree with your finances.

Patience is a Virtue:

Like the old saying goes, patience is definitely a virtue. Because short sales are in high demand these days, lenders are swamped. Therefore, you will need to be prepared to wait for not just a few weeks but possibly months.