Question:

How to negotiate a short sale successfully?

Answer:

If you are an investor, looking to negotiate a short sale successfully, you should know that not every homeowner facing foreclosure makes a good candidate for a short sale.

Negotiating a short sale - how to do it?

You should have a plan. Some buyers will simply submit their bid to the bank and wait to see what happens next. Clearly, there is no guarantee your bid will be accepted. Also, there is no guarantee the person you called at the bank's Loss Mitigation Department is the manager, or someone in charge of decisions.

Most often than not, your short sale bid will be turned down. If you want to be successful with this short sale, you should call the bank and ask what happened - if your offer was too low or someone already got the property? Or the lender is simply waiting for a higher bid.

When negotiating short sales, it is not the borrower who takes the decision. The borrower will be more than happy to have their house sold though a short sale and be able to walk away generally free of debt.

The bank, however, is not so easy to convince. Banks do not favor holding huge portfolios of pending foreclosures and short sales. If they did accept short sales on each mortgage in default, banks would record huge losses. Therefore, they need to be convinced they are making a good deal doing a short sale.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: