Short Sales Foreclosure Techniques - Finding the Perfect Proprerty

By Leslie Collins Platinum Quality Author



If you’re a foreclosure investor the next few months or possibly years will be a busy as well as profitable time.

If you can accurately spot and quickly evaluate short sale candidates, there’s no doubt you can profit in this current real estate market. By simply evaluating a few criteria about the borrower you will not waste time pursuing properties that have little chance of being accepted by the lender as a short sale canditate.

Before aggressively pursuing a short sale strategy on a property in default, make sure the borrower fits this profile below:

First the homeowner should be 3 payments behind in mortgage payments and a foreclosure suit will have been filed by one of the mortgage lenders by this time the property is listed with the County Recorder and has been issued a NOD (notice of default).

Second, the owner should have little, no or even negative equity in the property. This means that the total balance owed on the mortgage is equal to or more than what the property is worth. The term “upside down” is used frequently to characterize this type situation.

Third, in order to be a good short sale candidate, the owner needs to prove some kind of hardship case. In other words, there needs to be a good reason for not being able to make continued payments on the loan. This could be loss of job, divorce, medical reasons etc. Typically this means that reinstatement of the mortgage is not going to happen and the options for the borrower are to either try to short sell the property or face foreclosure.

Keeping these 3 criteria in mind will help you build a solid - viable list of short sale candidates.

You will also need to keep your potential list of properties current. You need a consistent way to QUICKLY search for properties in your area that are in default. In the past this amounted to a lot of manual labor but not so anymore. You can receive daily updates online on all properties listed as default for free by visiting the link below.

For 15 years Leslie Collins has been helping all types foreclosure investors get the information they need to profit in the foreclosure market. Visit: Free Foreclosure Listing Resource

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