Learn the basics of short sale.

You may have heard that investing in short sales can be very profitable, but find yourself wondering what is short sale investing and how exactly it can benefit you If you want to move into short sales, it is important to keep both eyes open and consider all aspects of the business. So how exactly can you pull ahead and make the real profits when everyone else is fighting to do the same?

Using a short sale strategy, many times they are able to stop the foreclosure process through the multiple strategies short sale houses has available to them. Most short sale houses have cash buyers who will close in 10 days; this prevents a foreclosure from showing up on your record, prevents further damaging of your credit.

Once you learn the basics of buying a short sale home you'll find that taking advantage of these pre foreclosures is a great way to make money in real estate investing. It can be a confusing process to muddle through your first few times.


1) Find out the laws that pertain to foreclosures and short sales in your state.
2) Banks won't negotiate until in default.
3) Call loss and mitigation department. Speak to the person in charge of your default and keep in contact with this person once a week.
4) Ask for a short sale packet...sends the info, they ask for
5) You negotiate ONLY! Not your Realtor...you put the offer in and let the bank counter back, don’t let the Realtor control the listing.
6) Listing with a Realtor isn't always good but the bank will take you serious if it's on the…...pay the fee to list and mention it's a short sale!
7) Don’t expect any offers until a month before court....find out the laws in your state.
know your LAWS...in California non-judicial they can't come after you if you have a conventional loan...equity YES for the difference
8) PRIVATE sale is the best in California...try to short.
9) Most banks won't short sell because they have insurance with the mortgage companies and the insurance will cover theirs losses...that's why they reject loans but as the rates grow higher less want to carry the homes.

The key is to work with a real estate agent who specializes in the area of town you are looking in, and is connected to the short sale market. But be careful as many agents claim they know short sales, but few actually do.