Some how I have stumbled into this area with the push/help of my broker. Unfortunatly, there's much I need to understand so that I don't spin my wheels wasting my time and money.

I just listed a home that's suppose to have the sheriff's sale June 20. While I'm still waiting for the bank to talk to me. . .(2-3 days before the authorization will be in file) I'm pretty sure this home is not going to sell for what's owed on the mortgage. It was listed the last 6 months with another company at a higher list price and expired.

Now that I've picked up this one, my broker has told me about another property that's pre-foreclosure. In fact, the owners have vacated the property. The owners say they do not have any money and do not want to list with me if it will cost them anything. (In speaking with them and then doing a drive-by, there's no way the house will sell for what's owed!) So it looks like if an investor/buyer comes along, it'll have to be a short sale.

In both cases, these owners' do not want the property. Each has found somewhere else to live and just wants to walk away. I understand this is a good niche to work, I just do not have much experience with it. I've been reading posts, checking sites out and making notes. I sure could use some suggestions and advise. As I stated, I'd like to pursue, I just don't want to get burned! Thank You in advance for your help. (I can only hope that somewhere down the line I will be helpful to someone else when the time comes.)

Make sure you explain in that condition the property will have to be sold short of what's owed,the benefit to them is they can save a foreclosure from going on there credit which will help them build credit faster to repurchase a home int he fututre when there situation changes.The sellers won't be paying out the commission the bank that approves the short sale will.

Most people don't understand reality,we buy houses for investments and we get calls from people saying i just want to get this out of it,well sure i couldn't really tell you what i could give you for the house,when can i come over and see it?

Especially in ga we have anywhere from 4,500 to 7,000 foreclosures a month,do you think with that many properties on the market investors will pay anywhere close to full value?

I would just explain to the sellers how it works and what to expect,if they don't want to list and just let it go,you just have to move on.

Do a search for short sale in the archives. That is five years of pre internet experience on a web page.

MY PARTNER AND MYSELF DEAL IN ALOT OF SHORT SHALE AND REO'S. IT IS ALWAYS BEST TO CONTACT THE BANK WITH A NET YEILD STATEMENT SO THAT THEY KNOW WHAT THEY WILL HAVE TO FORGIVE OR GO AFTER. WE ARE LISTED WITH SEVERAL COMPANIES THAT REFER THESE TO US.

Carl,

Might want to tone down the ALL CAPS in your messages. That's considered shouting.

So what kind of companies are referring these to you?

Steele in Minnesota

Sorry about the caps. Just used to using them in the BPO's, etc. There are loan resolution companies that try to resolve the foreclosures for the lenders before it happens. One that we do a lot of work for is Titanium Solutions. Have had several listings and sales come out of being a MLC for them. You do have to follow their program though. To get paid for the paper work and the short sale paper work. There are others on the net. I view this as getting paid for making "cold" contacts. The borrower's are aware that you are coming to talk with them about helping them from having a forecloseur on their credit report. Just be sure you follow their program completely.