How To Invest in Real Estate Short Sales Approaching Foreclosure

You have to be living under some type of rock if you haven’t heard about a foreclosure. We are living in all-time highs for the amount of foreclosures filed everday in the United States. Perhaps you heard of another seeminly popular phrase called a “short sale“. Short sales happen when a lender agree to accept less than what is owed on an underlying debt.

For example: $100,000 owed to lender. Offer of $75,000 is submitted and lender agrees to accept $75,000 for their $100,000 position on the mortgage.

Why is this important and how in the world can you profit from doing a short sale? Easy. You simply learn a little known language called “Loss
Mitigationeze”. What is that? It is the common slang and phrasing loss mitigators (debt collectors and negotiators) use when dealing with anyone that requests even a SECOND of their time! Yes. The loss mitigators are over worked and under paid for the most part. That means you must be on your game in order for them to take notice of you or your submitted offer.

However, once you are jiving with the loss mitigator you have amazing negotiation position to get what you want from the short sale deal. If the loss mitigator feel they are working with an equal, they will respect you more. If they feel you are a push-over and won’t stand up to fight for your offer… they will verbally abuse you until you counter or give up.

The game of short sales isn’t easy (anything that is worth fighting for usually isn’t) … but the perks that come from completing just one can pay
for all your bills for 6-12 months and provide some peace-of-mind to distressed and hopeless homeowners. That is the part of doing short sale
investing that is invaluable. For more information check out this Short Sale Real Estate Guide.