How do you negotiate a "short sale" on a home mortgage?

Answer 1

The very first thing you must do is to get the seller to authorize the lender and the foreclusre attorney, to release information to you and also allow you to negotiate a contract ith them. If they don't see that signature..they can not legally discuss the foreclosure with you. Once you have this letter..you need to have your attorney (one that is well versed in short sales) send the letter and a request for the payoff amount to both the lender and their atty. Usually It will take several days for a response.

The key to getting them to respond is to HIRE AN ATTORNEY! I tried this myself, had all the documents and couldnt gret anyone to return my calls. Funny,....I got another attorney involved and we had a return call in 3 days!

Don't assume because the seller has a statement with their payoff that that is correct....often they don't know that there are thousands of dollars in foreclosure fees, atty fees and interest that is acruing daily. Once you have the true payoff..offer less (Short sale) write a contract, have the
seller sign it..have your attorney fax it back to the lender and their atty. Make SURE you have proof of funds or a NON CONTINGENT preapproval letter that is going to go with that offer. The stronger you look, the sooner you can close the more likely the bank will say yes! Good luck..email me if I can be of more help!

Vicki Watzlawick
Broker Owner
Exit Platinum Realty
www.vickisdreamhomes.com

Answer 2

A short sale is a pre-forclosure measure that the mortgage holder/bank negotiates with teh borrower. It is a settlement in lieu of foreclsoure for an amount less than the balance owed on the mortgage, which the Lender accepts as full and final payment on the mortgage. The owner/borrower is not entittle to ANY of the proceeds of the sale.

Answer 3

Hire a qualified attorney to negotiate the short sale for you.