Bidding a Short Sale Property
Short sale properties are an attractive revenue generator for investors and great bargain for home buyers.
One should know that a short sale is one where the bank has officially permitted a loss on certain debt. Therefore, the bank is getting rid of a loss bearing property.
In this scenario, the owner is in a difficult situation, both financially and mentally, for which the property is set to be mortgaged.
The basic step to successful negotiation is to build a strong relationship with the client.
Short selling is a reality but emotionally it has two different faces. The face of the bank is neutral with nothing to lose. However, the owner might be relinquishing not just a property, but also memories and emotions.
For every short sale, a specifc method should be implemented to get the best results.
You have housing data available, but that’s not enough. You need to search market dynamics to negotiate and justify your offer before writing it down into a composed offer. Two agreements will be required, one from the proprietor and other from the bank with an offer in order to complete a short sale deed.
Seeking permission from the proprietor in writing can be useful when negotiating with the bank; however, documents should be assessed by a legal representative before signing to avoid litigations.
During the process, good interpersonal skills and a positive and persistent attitude are essential to move forward. Banks might take time ranging from days to several weeks to respond. They might even add BPOs (Broker Price Opinions), more negotiators or make amendment in appraisals.
The process can be very stressful and nerve-wrecking. But you should not give up and be prepared for it.
You should have your loan or any other source of payment ready before placing an offer. Ensure your lender pays without any delays; because once short sale is approved you need to transfer the payment into the escrow.
We work with a pool of investors and buyers interested in properties offerings in the Palm Beach County area. We also secure real estate through short sale deals.
Contact us at (561) 370-8335 to discover all the possibilities where we can assist you!