How to bid on a short sale property

Short sale properties can be a great source of income for investors, and a great deal for home buyers.

It’s important to keep in mind that a short sale is one where the bank has approved a loss on a current loan. They’re losing money, so they want to unload.

Generally the current owner is in a rough time, or wouldn’t be facing the loss of the property. Difficult times mean tremendous amounts of stress and emotional turmoil.

Managing relationships is always the key to any negotiation.

For the bank, a short sale is an unemotional transaction. An owner may be letting go of a property with great emotional significance.

You’ll have to take different approaches with every party to a short sale transaction to get the best result.

Data is on your side. Look up comps to get an accurate picture of the market, and seek out justifications for your offer prior to submitting a written bid.

In a short sale, you have to get agreement from the owner and the bank(s) involved on the purchase price and the terms.

Getting written permission from the owner to discuss terms with the bank can be really helpful, but check with a good lawyer to make sure you have the right documents before you ask the seller to sign anything that might violate law.

Your relationship skills are super important during this process. The bank will often require days, even weeks, to respond to offers and move forward. Often they request additional BPOs (Broker Price Opinions) or modify appraisals, and they sometimes like to involve different negotiators.

It can be intensely frustrating, so prepare yourself and don’t stress.

Get fully approved for any loan you plan to take long before you make an offer. Make sure your lender can close at the drop of a hat, because once the approval comes for the short sale transaction you need to be ready for escrow.

We secure properties via short sale, and we work with many investors and buyers who are looking for great deals on properties in the Quakertown and Surrounding Areas area.

Give us a call 610-200-5544 or get in touch anytime to find out how we can help you!

About cyndybuys

Cyndy and Tom Dumire are experienced 22+ year real estate investors. They have mastered how to buy real estate without using any of their money and mentored students for over 12 years. They have built their business, partnered and trained many students to become very successful so they can give up their job! Cyndy and Tom started by studying Ron's system 15 years ago and built their business becoming experts in the ACTS program, subject to, wholesaling, lease options and purchasing homes with their “out of the box” methods. Cyndy is also a marketing guru and it always on the cutting edge developing new methods on buying and selling properties. They will show you what to say, how to say it, how to get a deal and then get a check. Are you looking to fire your boss or go to the next level? It is time to take the challenge and make your first deal. Investors love to work with Cyndy and Tom because they will give you the confidence, guide you how to write contacts and get the checks!
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