The hardest part about buying a short sale is finding a short sale. Short sales, much like pre-foreclosures can typically be a great deal for the investor, but there are a few things you should know before getting started. Again, if not working with a realtor or some savvy in the real estate investment markets, finding a short sale can be elusive because mortgage late payments are not a matter of public record. For a list of short sales around the country click here to be re-directed to an exclusive short sale listing web site. The listings on this site are from real time homeowners, nationwide, that are looking to market their properties to realtors and investors.

So now that we have identified a property what to do next? Get an accurate estimate of value. Either call a realtor in your area and have them work up a Comparative Market Analysis or check ou tElectronic Appraiser On-Line Home Valuations! for fast, affordable and accurate values.

Get in touch with the homeowner to make an offer. After you have an accurate estimate of value for a certain neighborhood or home in particular, get the forms you need by clicking here. We have an extensive library of everything you need from purchase contracts, home owner disclosures, addendums and any thing else you need which may be state specific. Submit your offer to the seller. Be advised, it could take weeks to get an answer back from the bank as more and more homes are going into foreclosure. If there is a 1^st and a 2^nd mortgage and you are offering an amount less than the payoff amount, it is wise to offer something to both banks in the form of an equal percentage of loss to each lender, this is some information you would want to work with the seller to help him or her understand the nature of the process. Don’t hesitate to ask what the payoff amounts are as this will help you determine your offer.  There are also some other processes it would be wise for the seller to understand. To help and work with your seller, you may want to recommend www.preforeclosureFSBO.com. They have the complete short sale process lined out for sellers and buyers alike and complete step by step instructions that helps sellers with exactly what they need to do.

With your offer you should include either proof of funds if it’s a cash deal or a letter from your lender stating that you have been pre-approved for a mortgage. Check out LendingTree Mortgage Loans for today’s most current mortgage rates or pre-approve on line, it’s that easy! Again, this process will take some time and very few transactions close in 30 days or less so be patient and expect other forms and addendums from the seller’s bank that will need to be signed.

More times than not the seller’s bank will want to pick a Title Closing company or Real Estate Attorney in your area to handle the closing process or they may even send someone that they work with in your area to come to you to close the sale. Which ever the route you go, the Closing Company or Attorney will need all the information from both sides of the transaction, a copy of the signed contract and the earnest money check along with any information from the buyer’s lender and any and all addendums from the seller’s bank as well and there will be some. Again keep in mind not all short sales are approved, however it is not in the bank’s best interests to own property and the foreclosure process will cost them time and money.

Prepare the seller for any and all demands made by there bank. Typically the seller’s lender will want to see a hardship letter and reasons why they can no longer pay for the home and any forms their bank may require. Stay on track, meet the demands of the sellers’ bank and do what is necessary to get to the closing table and short sales not only benefit the buyer by getting him a good deal, but helps the seller and the sellers’ bank by avoiding foreclosure.

Keep in mind this should be submitted as an “as is” offer. Typically the lender will not pay for items typically paid by a seller ie: termite or pest inspections nor will a lender pay for repairs. The buyer should be prepared to pay for any inspections he or she may want like home inspection, roof, chimney or pest inspections and it is critical that the buyer not waive these inspection rights.