HOW TO FIND “SHORT SALE” PROPERTIES AND MAKE MONEY SELLING THEM

The best way to find these properties is to pull the Lis Pendens from the land records. A Lis Pendens is filed as part of every foreclosure.(It can also be filed for divorce or a mechanic’s lien so be careful to read the exact type of Lis Pendens filed). It is rumored that the foreclosure houses have a list of foreclosures that they distribute to certain people. If you have someone in the know that would be a good way to get new up to date information. You can also find foreclosures online by using a foreclosure tracking service. (these are somewhat dated). If you know a Seller’s last name you can check the judicial website www.jud.state.ct.us and search him by name. If he is in foreclosure you will see it. You will also see if other people are suing your seller. This is important because lawsuits turn into judgment and judgments turn into judgment liens and judgment liens kill short sales! (They kill regular deals too or at least throw a major monkey wrench into them! So keep an eye on the this site throughout your transaction).

Special Note: Checking the judicial site does not replace going to the town hall and gathering all liens and amounts owed to clear title

The reason I start you out looking for foreclosures is because many foreclosures are short. The way to determine if a foreclosure is short is to go to the town hall and gather ALL liens and add them up. If they total more than the property is worth in your opinion the property is probably short. When you find a potential short sale property you will need to market yourself to the client. Your must be careful to only take the good ones. Many of these properties and/or seller’s are not fit or do not qualify to do a short sale. It takes a qualified seller and a qualified property to do a short sale. That is where I come in.

Special Note: A lot of FSBO’s are short so you might market to these people too!

I will help your prequalify your potential deals.

Here is what I need to prequalify a new short sale for a seller or buyer you already represent via listing agreement or buyer rep. agreement:

1) Take a look a title (not the homeowner’s mortgage statement. Not running the title down here will cost you dearly later!)

2) What is the name and amount of first mortgagee

3) What is name and amount of second mortgagee

4) What is the name and amount of any other liens of record

5) What is the true value of the property today in its condition (must be a defendable number)

With this basic information I can submit any short sale for any bank in the country for preapproval and get an answer within 24-48 hours. Then you agents can list the property. I will then speak with the seller and make sure short sale is the correct option and that the seller and buyer are in for the long haul. My office gathers the documents necessary for the short sale and we submit the offer for approval when it comes in. It takes on average about 6-8 weeks to get approval. With any luck we have a closing.

When you call or email (preferred) for us to look at a deal please make sure you have done 1-5 above. Ask for Linda if I am not available. She will immediately submit the deal for prequalification and she will pass the answer along as soon as we get it. We will talk after that to make sure you get the property listed correctly and to make sure any offer you receive is structured correctly.

Sincerely,
Gary L. Seymour
Ebook for Agents
Justice for Homeowners
Be Debt Free for 2008