A successful short sale package begins with calling the lender who owns the loan or mortgage. Stipulations and requirements for these types of sales vary from bank to bank. The only way to know what is required of you is to make a phone call to the lending institution. Make sure you talk to the supervisor who is responsible for the final decision in the application process, not the “delinquent payment” department. It may take a few phone calls, but by talking to the person in charge you will be better informed about the entire sale process.

A letter of authorization is usually required to begin the process. The letter stipulates that the lender can talk directly with your real estate or closing agent, lawyer, or title company without you being present. This letter should include the address of the property, reference to the loan number, your name, current date, and your agent’s and/or lawyer’s name and contact information. While this letter is not required by law, it will simplify the process for the lending institution, thus making it more likely that they will approve the sale.

A typical short sale package includes a preliminary net sheet, a letter of hardship, proof of current income and assets, copies of the last three months of bank statements, a CMA (comparative market analysis), and, once the sale is finalized, a copy of the purchase agreement. A preliminary net sheet lists the expected sale price of the property minus the closing costs, realtor fees, unpaid loan balances, outstanding payments due, including late fees, and any accrued taxes that may be owed on the property. A realtor can usually prepare this sheet for you.

A letter of hardship is a letter that describes why you have fallen behind on your payments and why the sale of the property will be less than the amount owed on the mortgage or loan. This letter should by as truthful and heartfelt as possible, and should be written by you. In it explain why you have fallen behind on your payments. This could include unexpected medical expenses, a death of a wage earner, or a lost job due to layoffs or cutbacks. Most financial institutions look down on excuses that relate to being fired from a job, unexpected legal fees due to lawsuits, or divorce settlements. Remember that banks do not like to receive partial payment on an outstanding loan. You have to convince them that you need the help.

Proof of income and assets is a declaration of your current financial status. This should current income levels, backed up by back paycheck stubs and bank statements, any other properties or assets of value that you may own, any stocks or bonds you may own, or any number of other things that a bank may classify as collateral. Banks vary greatly on what they require to be included. Therefore, you will need to contact the lending institution to find out the details. Remember you want to be as honest and accurate as possible. Finally, a comparative market analysis will help prove that you cannot sell the property for the value of the loan. This analysis includes recent property values and impending market sales, and can be prepared by your realtor. Collect these documents and letters to create a successful short sale package.

MisUniversity
http://www.articlesbase.com/business-articles/how-to-assemble-a-successful-short-sale-package-711166.html

The real estate investment forum is vast. It is part of an industry that enjoys a global connectivity and appreciation. The real estate industry works within paradigms set exclusively to ensure profitability with very purchase or sale. The land and property investments all over the world are done in two ways. Buyers and sellers of land or property, globally, either invest ready cash in hand if they are big time players or rely on special real estate investment banks to provide the funds for the desired transactions. 

Real estate investment banks are run by professionals from within the industry or professionals who are well versed with the needs of buying and selling real estate. The banks function as lenders in times of need, for both – the buyers and sellers. These real estate investment banks have set rules and regulations within which they operate and enable investors to benefit from slow and steady market spaces. The loans are provided according to the fiscal market rules on rates of interest, types of interest and loans and the profiles of the buyers and sellers. 

The real estate investment banks are run just like any other fiscal component. The services provided are like regular banks – accounts, loans and facilities to negotiate lucrative deals. These banks are dedicated to the endeavor of enabling buyers, sellers and brokers and agents around the world to make a profit from real estate deals in land and property. The banks also address the need of the industry for foreclosure of properties, for buyers to avail of cheap deals and sellers to be able to close their financial obligation to the institute. The real estate investment banks are run in a very professional manner, catering exclusively to real estate investment segment. 

The services and offers are designed by management gurus from within the industry, who enable synchronization between the lenders and the industry requirements. These banks are sensitive to the needs of the industry and keep addressing the upgradation of services from time to time. The financial institutions, private and public, strictly adhere to the law that governs the real estate industry and the advice and guidance of people who have been associated with the industry for years. 

The real estate investment banks are accessible for sensitive information online and offline and they also assist industry components in the identifying of important strategies and applying the available resources to maximize profits. These bankers play assistants to every transaction in some way or the other. They either function as treasurers who take care of and help to re invest the earned profits or lenders who facilitate the basic transactions. Real estate investment banks are no different in design to the regular banks, except that their core functions are targeted towards the vital interests of the real estate industry. 

These banks are funded by the industry and return the service as and when required. Their conditions that define whether or not a person is eligible for a facility are monitored stringently and well within the paradigms set by the industry. The banks are caretakers of the trust and fiscal instruments that are commonly exchanged within transactions. They act as trustees, where the components of the real estate industry play their wards.  

Written by: GB
Date Written: 07/07/2008
Reviewer Assigned by: David
Reviewed by: VO
Quality Control: AG
Copyscape Results: Nothing copied
Webmaster Results: Nothing copied
Subheadings: Not Required
Common Error Check: Done
Spelling and Grammar: Done
Quality Control Completed on: 08/07/2008

Charles and Kim Petty

The real estate market is a profit making and investment generating industry component. The industry works within extensive networking that is handled by the various active contributors like the agents and brokers and most importantly, the buyers and the sellers. The networking results in global connectivity via telephone, Internet and personal contacts. The result of such extensive real estate networking is dedicated lists and real estate investing clubs. The latter, the real estate investing clubs, comprise members who are either or all of the industry components. 

The clubs operate online and offline and are managed by dedicated people who are well versed in the nuances involved. These information generators first identify buyers and sellers from across the globe. The next step involves getting detailed information on the properties – their location, utilities and amenities included and facilities near by and the condition via photographs and 3D images. Then, the managers of the real estate investing clubs have to categorize the information and list the information generated on each property according to priority, with profit being the ultimate goal of each listing. 

The online clubs comprise of many such listings and user-friendly forums that enable the members to chat and keep in touch. The real estate investing clubs provide extremely useful information to people around the world who aspire to generate a profit from this industry. The clubs operate in away that both, the novice and expert real estate investor, get ample of opportunities to profit from every transaction closed. The real estate investing clubs provide the industry across the globe with a great and versatile forum to gain more information within a network of reputable contractors, brokers, agents, realtors, lawyers and real estate accountants. 

The access to membership to the real estate clubs is easy and available 24×7. Each club offers visitors a form and once you fill it in and agree to the terms and conditions, you are raring to go! The real estate investing clubs make available tips and advice on how to close lucrative deals, strategies and surviving the fluctuations within the industry. These clubs are run by and maintained for the community and prospects all over the world. Being part of a club enables investors all over the world to establish contact with counter parts and strategies being tried and tested within the industry in other parts of the world. 

Real estate investing clubs are becoming popular across the globe because of the instant access to information it facilitates and the timely action that can be taken on account of the same. There are a number of industry bigwigs who admit to tapping the potential of the information available within these clubs prior to taking any decision. The real estate investing clubs act as industry resources for sensitive data and a forum for sharing vital information across continents. This has enabled the real estate investment enthusiasts to absorb the best and do away with redundant methodologies still being practiced in some markets. 

The clubs allow access to listings, names and addresses of buyers and sellers, latest industry news and reviews, laws and by laws that affect the functionality of the system and the latest strategies adopted in different parts of the world.  

Written by: GB
Date Written: 07/07/2008
Reviewer Assigned by: David
Reviewed by: VO
Quality Control: AG
Copyscape Results: Nothing copied
Webmaster Results: Nothing copied
Subheadings: Not Required
Common Error Check: Done
Spelling and Grammar: Done
Quality Control Completed on: 08/07/2008

Charles and Kim Petty

Where do most investors turn to when they seek opportunities with real estate foreclosures? There are numerous ways to locate and target real estate foreclosures and, while these sources may lead to productive and profitable deals, they also usually require extensive marketing and business promotion in order for an investor to most effectively benefit from these opportunities. How do you learn how to do these things in your pursuit of real estate foreclosures? The key is real estate training and, more specifically training that focuses in on real estate foreclosures and/or short sales.

Investing in real estate foreclosures is an amazing opportunity but there are many aspects to consider, especially if you are really going to learn real estate short sales. Good foreclosure training and good short sale training programs cover all the features you need to learn, including marketing, negotiations, and even the emotional aspect of the sale, a natural by-product of real estate foreclosures that can often complicate short sale deals.

My efforts here are to assure you that there are indeed unlimited deals to be found within the realm of real estate foreclosures. Whether you’re just curious how to make money with real estate foreclosures or really dive in and engage in serious short sale training (sometimes called Loss mitigation training), then you owe it to yourself to check out my Preforeclosure Cash Flow System and the many short sale training modules within it that cover how to really launch your pursuit of real estate foreclosures.

In closing, regardless of timing or the nature of the foreclosure process in your area, real estate foreclosures provide opportunities that are there for the picking. In today’s market, the short sale process is as much as part of real estate foreclosures as any other part of the business. Look at opportunities with other types of real estate foreclosures too because the deals are out there. I also suggest that you commit yourself to the proper type of training, and your pursuit of real estate foreclosures will be more productive and more rewarding. I wish you the very best in success in real estate foreclosures and in real estate investing as a whole.

By D.C. Fawcett, Business Building Coach to the Foreclosure Industry

For more information visit: http://www.realestateforeclosuresinvesting.com

DCFawcett

Copyright © 2008 Lex Levinrad

I have heard many questions over the years from students about whether or not it is really possible to buy real estate with no money down. The most frequent questions I get are from mortgage brokers and realtors. Since mortgage brokers are by definition trained to fund a loan based on bank requirements like 20% down payments, then by definition anything else seems to be beyond the scope of their possibilities. It has been my experience that many real estate professionals don’t seem to understand the concept of “no money down deals”. 

Firstly, the definition of no money down does not mean “no money down”. It simply means none of YOUR money down. It could be Uncle Bob’s money, the sellers’ money, or a loan from Aunt Sally. It could also be a credit line, a private investor, hard money lender or anyone else for that matter. It is very important to understand this concept.

Now, if you were to purchase a house and put down 20% which you borrowed from your relative, then you would have purchased the house with no money down.  You can call it 100% financing or whatever you want to call it. As far as the bank is concerned you put down 20%. However there is a problem with that since as many mortgage brokers will tell you, banks want to know the source of the funds. When they see that the funds are borrowed and that you have no “skin” (your money) in the deal then they will reject the loan.

So, what is an investor with no cash going to do to get around this problem? The solution is to borrow ALL of the money to purchase the house for cash. If you borrow from Uncle Bob all of the cash then you can be a cash buyer. Cash buyers are very rare today and if you are a cash buyer then you can buy bank owned REO properties at a substantial discount to market value.

But Uncle BOB is not going to feel comfortable loaning you money to buy a house unless there is substantial security for him. Since banks loan money at loan to value (LTV) ratios of 70% Uncle Bob might be especially cautious and only agree to loan money at 60% LTV. Is this risky for him? Well it is less risky than conventional mortgages that are funded by banks. Why is it less risky? Well firstly, conventional banks loan based on a mortgage application, a credit score and an appraisal. But Uncle Bob is a little smarter than the average bank. He actually can go out to the property and inspect it himself. After all, if you don’t pay him then he is going to get the property since he has the first mortgage.

So Uncle Bob is going to need to have enough knowledge of real estate to feel comfortable that if you don’t pay him, and he gets your house that he will have a deal. Uncle Bob is going to do his own comps and is not going to rely on an appraiser. Uncle Bob is going to spend days or even weeks investigating the property compared to the 30 minutes that an out of state loan officer looks at a file. If Uncle Bob is convinced that your deal is a good deal, then he is going to loan the money. If you are paying him 10% interest and the bank is only paying him 2% then Uncle Bob will make more money loaning on real estate compared to having his money in the bank. If Uncle Bob has done his homework then he will only fund a deal at 60% LTV or less. What this means, is that if he thinks the house is worth $100,000 he will only loan you $60,000 and no more.

Your challenge will be to find a $100,000 house that you can buy for $60,000. Being a cash buyer will make your job much easier because 99% of the buyers that are competing with you will be looking to get a mortgage. Currently it is very difficult to get anything other than an FHA or VA loan. Cash buyers are able to buy properties directly from banks for as little as 50 cents on the dollar. This is a once in a lifetime opportunity.

So start looking for “Uncle Bob” or anyone that you know that has money. Then once you have an investor lined up begin looking for wholesale real estate deals.

When you find a deal the mechanics will work like this:

House is worth                                 $100,000

You purchase for                             $60,000

Uncle Bob loans                              $60,000

Money out of pocket                        $0

Now that you own the house, you wait 6 to 12 months for something called “seasoning of the title” and then you go to your mortgage broker and you tell them that you want to do a refinance. You want to get a conventional mortgage at 7% to pay off Uncle Bob at 10%. The bank will require an appraisal and if you were correct in your initial assessments the appraisal should come in at $100,000. If the bank agrees to give you an LTV loan for 70% of the $100,000 appraisal, then they will loan you $70,000. Assume closing costs are $5,000, so after paying Uncle Bob back the $60,000 you are left with the following scenario:

House value                                     $100,000

Bank Loan                                        $70,000

Equity                                                 $30,000

Cash left over from refinance            $5,000

You just purchased a house with no money down. AND you now have $5,000 in your pocket and $30,000 of equity in the house. This is called distressed real estate investing. Your challenge is not finding Uncle Bob. There are many Uncle Bob’s out there. They are called hard money lenders or private investors. Your challenge is to find a $100,000 house that you can buy for $60,000. That is the hard part. To do this you are going to need to find a distressed seller. If you can learn how to do that then you will have no problem finding the money.

Beginner distressed real estate investors think that finding the money and having good credit are obstacles to their beginning to invest in real estate. This is not true. The biggest obstacle is education. Learn and understand how and why you can buy a $100,000 house for $60,000. Understand and know what a distressed seller is and why they would sell a house for less than its current value. Then go out and start looking for a deal. When you find one, give me a call. Maybe I will buy it from you. For more information about distressed real estate and the Distressed Real Estate Institute please visit http://www.lexlevinrad.com

Lex Levinrad