Now there are approximately 1.5 million loans in foreclosure.  There are 3.5 – 4 million loans that’s seriously delinquent that are being modified or slowed by banks.  Take a look at this video from CNBC for more details.

If you are an investor, now is the time to focus on short sales.  Again, a short sale is when the lender agrees to take less then what’s owed on a property in a sales transaction.  Short sales are not for the faint at heart to negotiate.  You must have some experience and knowledge in order to be successful in getting your short sale offer accepted.  I recommend 1st Choice Loss Mitigation as the negotiating party for short sale negotiations nationwide.  They are experienced and have a reputation of successful short sale negotiations.  Also, if you have a possible short sale lead, 1st Choice Loss Mitigation will partner up with you on the short sale and assist you with selling it.  The profit will be split down the middle with the investor and 1st Choice.

Based on the information in the above video, this is a perfect storm for available short sales that’s been brewing for some time now.  I know that on the last 2 short sales we’ve been able to pick up through 1st Choice Loss Mitigation, the lender accepted our initial offer.  There was NO COUNTER OFFER at all, Wow!!  That’s why this market is perfect for buying short sales, cause banks are very flexible and they need us, not the other way around.

If you are an investor, now is the time to buy short sales.  Find you a couple of good Realtors to work with, a great loss mitigation company to negotiate your short sales, and some deep pocket buyers and you can make boat loads of cash in the next 2 years flipping short sales to buyers.

Till my next post….

In order to fully optimize your short salepurchase, you want to contact the homeowner directly vs going through an agent that’s listing a property.  I am in no way discouraging the use of Realtors.  But there is a place for agents and we will touch on this shortly.  Once you’ve contacted the homeowner and establish that they are willing to sell and the property is in pre-foreclosure, you want to hire a loss mitigation specialist.  Loss Mitigation Specialists can be anyone assisting in the controlling of loss for the asset in question.  Banks have a Loss Mitigation department that handles debt negotiations such as short sales and loan modifications.  The loss mitigation specialist that you hire to negotiate your short sale purchase will have direct contact with the bank’s loss mitigation department and thus negotiate back and forth till agreeable terms are met.  Normally when you purchase a listed property, there are two agents that negotiate with each other.  Likewise when purchasing a short sale, you want to have two similar entities negotiate, two loss mitigators, not a loss mitigator and a Realtor.  This isn’t an equal playing field!  You want to have a negotiator that is on the same playing field as the lender’s negotiator.  Realtors are still utilized to list the property because nearly all lenders today require that their short sale properties be listed before submitting an offer.  A number of Realty firms are hiring loss mitigators to outsource their short sale negotiations.   

Loss mitigators can get the short sale negotiation completed much faster then the average Realtor, because they are specialist and understand the business.  Most of these mitigators have established relationships with lenders and know exactly what the lender requires to get a short sale approved fast.  Short sales are about negotiations and understanding.  If you have a good negotiator that understands the short sale process, then getting a good discount on the purchase price is definitely feasible.  But if the lender doesn’t allow for the type of discount you are searching for, then the only thing you’ve lost is very little time if any because the loss mitigation specialist is the one that has spent time talking with the lender.  For more information on short sale negotiators, please visit 1st Choice Loss Mitigation.  These are the negotiators I use for my short sale deals. 

Till my next post!!