When it comes to buying property from somebody who has a mortgage on it, one of the only ways that you can get it for cheaper than what the person still owes to the bank is through a short sale in real estate. The only way that it can happen however is if the person holding the mortgage is really behind on his payments and the coming future still looks bleak.
So the first thing that one has to do to make this happen is to find such a mortgage holder who is behind on his payments. Once you have found such a person and he wouldn't mind selling then he will have to give you the authority to now go and make an offer to his bank.
When it comes to the bank you will need to go to the loss mitigation department. Here you will have to find the exact person whose responsibility is the mortgage in question. He will tell you from there what documents to go ask the mortgage holder for to make this foreclosure happen.
Once you get the information you need, collect all the paperwork needed from the homeowner. You may need to provide personal information, such as W-2's, bank statements, and financial statements.
This homeowner will also have to write a letter explaining to the bank why they are not coping with their monthly payments and they would rather sell.
All this information will then have to go back to your loss mitigation contact.
We all know that when it comes to banks they really know how to take their time so once these documents are deposited with them do not expect things to happen in a flash. Give it time. The banks will be waiting for a brokers price opinion (BPO).
Sometimes, the bank is stubborn and may decide that the property is worth more than what you offer. They may make a counter offer after a few weeks of deliberation. Get pictures of detailing problems in the house. These can, at times, enable you to negotiate a lower price.
If the bank does not accept your offer or allow you to negotiate a reasonable price, walk away.
So the first thing that one has to do to make this happen is to find such a mortgage holder who is behind on his payments. Once you have found such a person and he wouldn't mind selling then he will have to give you the authority to now go and make an offer to his bank.
When it comes to the bank you will need to go to the loss mitigation department. Here you will have to find the exact person whose responsibility is the mortgage in question. He will tell you from there what documents to go ask the mortgage holder for to make this foreclosure happen.
Once you get the information you need, collect all the paperwork needed from the homeowner. You may need to provide personal information, such as W-2's, bank statements, and financial statements.
This homeowner will also have to write a letter explaining to the bank why they are not coping with their monthly payments and they would rather sell.
All this information will then have to go back to your loss mitigation contact.
We all know that when it comes to banks they really know how to take their time so once these documents are deposited with them do not expect things to happen in a flash. Give it time. The banks will be waiting for a brokers price opinion (BPO).
Sometimes, the bank is stubborn and may decide that the property is worth more than what you offer. They may make a counter offer after a few weeks of deliberation. Get pictures of detailing problems in the house. These can, at times, enable you to negotiate a lower price.
If the bank does not accept your offer or allow you to negotiate a reasonable price, walk away.
About the Author:
Get more educational articles by this author regarding areas such as short sales in real estate and real estate value.
No comments:
Post a Comment