Now that you know more about short sales, you will have some answers to questions like…
- How to get a listing that you can turn into cash instead of a cash drain
- How to sell a house in nine days
- How to get the lender to agree to a short sale
- How to do a short sale if your client has two loans
- How their credit gets reported they do a short sale
- How to get your client's existing loan modified so they have lower payments (and when that is not possible, so you can counsel them and not get anyone's hopes up)
- How to slash credit card balances without bankruptcy, and improve a person's credit
Okay, now if you already know you want Mortgage Relief Formula, you can click on this link. Or, you can read on for a lot more educational information (no hype and no sales pitch) about short sales and loan modifications. Click here if you are ready to order Mortgage Relief Formula with zero risk
How to avoid hopeless listings and get mostly good ones
You need different strategies today to sell houses. You go low. Very low. And get multiple offers. You master the BPO, so you can submit your short sale offers with competitive, good quality BPOs that show the lender it is in their best interests to agree to the short sale.
The BPO is the heart of a good short sale package. And pricing low is the key to unlocking profits in today's falling market.
Remember, this isn't the old days. Listing properties today is easy. But who wants a bunch of bad listings?
The key today is to not waste your time and money on hopeless listings. Hopeless listings are what most of your colleagues are spinning their wheels on. And slowly going broke on. Fees are high and advertising costs a lot. And meanwhile, clients are seeing their credit drain away. They don't feel kindly when they list with you and have their property sit there, and they can barely pay the interest on the mortgage.
So what you will want to learn is how to list houses in a falling market. How to persuade sellers. And how to get buyers to move off the fence and to the contract.
And most of all you need to learn how to sell a house in nine days.
How to sell your listing in nine days
Selling your listing quickly, even in a terrible market, isn't that hard. If you know what you are doing. This system works for single family homes, attached townhouses, expensives houses over $1 million, and houses that are $80,000. It works for condos. It works for horse properties. It works for oceanfront estates. (It does not work for raw land.)
The best way to sell a house today is different from the way you sell a house in a good market. You can't start out high and then gradually lower the price.
What you have to do is start very low and get a bidding war going. There is a specific way to get 30 - 50 people in a weekend over to look at your property and get many of these folks to bid on it. The result is quite often multiple offers and a contract within nine days of beginning the process.
Then you take those buyers who didn't win the property, and they follow you to your next listing. This time they try harder and bid higher. And you make one more sale.
You're lucky. Because only a very few extremely savvy real estate brokers know how to do the nine day sale. The people who understand this discovery are rolling in money
I give you the exact steps in my home study course. And if you want, I can even coach you through your first one by telephone, if that is what you choose.
Everything is in here, step by step. What to do, how to create a listing on Craigslist and how to get the phone to ring and what to do when people come to the door Saturday morning.
And my Mortgage Relief Formula course offers much more. Because after a house is sold you have to convince the lender to accept the short sale.
How to get the lenders to say Yes to your short sale
When it comes to negotiating with lenders, most people don't have a clue. Because they've never done it before.
If you haven't already heard, a short sale is quite simple. The lender accepts a payoff of the loan that is lower than the amount you owe. What happens to their loss? They may ask that you sign a personal note for some of it. Or they may simply write it off.
The advantage of a short sale is that it is kinder to your credit. And in many situations where you may have personal liability, it reduces your exposure later on.
Okay, so a short sale is a good thing. But most people who try to do a short sale muck it up. They've been making all sorts of mistakes.
The biggest mistake is not presenting the right paperwork to the lender. If you just listen to the lender and present them what they ask for the way they ask for it, you are often doomed. They do not tell you the most important elements to your short sale paperwork package.
If you understand what you need to give to the lender, you can in a very high number of cases get the short sale approved, and earn a very nice commission.
Short sales can be easier than regular sales. Because the seller doesn't care what the property brings in. The lender's getting all the money anyway. But you must master the skills, different skills from those required last year and the year before.
How a low BPO is the key to getting your short sale approved
In my Mortgage Relief Formula, I show you how to produce a good low BPO. A BPO is like an appraisal. The lenders will send their own broker or appraiser out to your house once they look over your short sale package.
But if you have done your own BPO first, and it is done right, the lender's BPO will come in far lower.
Why is a low BPO important? Because the #1 reason I have seen for delays or refusing to approve short sales is that your buyer's offer is too low in the lender's eyes. It's all about valuation. The lender thinks you have a buyer who is coming in too low.
How does the lender base their opinion of your buyer's offer? On their BPO. And here is a big secret to the short sale process: if you do your own BPO and get it nice and low, the lender's BPO will come in lower, too.
And that means they are more likely to say "yes" and do so a lot quicker. Even if you have two loans, such as a first mortgage and a HELOC, or a first and second mortgage.
How to do a short sale with two loans
In many situations today you will sell a house for someone that has two loans on it.
There are tricks to doing a short sale with a second mortgage. The main thing is to get the first mortgage holder to agree that at the closing, some of the funds go to the second mortgage holder.
Then the second mortgage holder will release their lien on the property. They may still come after your seller, the borrower, but they will owe less. And debts like this can be negotiated as an interest-free note, or partial payment, or a 20 year payment period, and so forth.
It is not a lot of fun, but by doing the short sale with two mortgages you will in the end reduce how much your seller owes and get them out from under.
And you can do very, very well.
How is your seller's credit affected by a short sale?
A short sale can affect your seller's credit surprisingly little. It may affect their FICO score more than their credit report. Their credit report will show "Paid - Settled". Yes, their FICO score may come down significantly, but the short sale is far kinder to their credit than a foreclosure or bankruptcy. And they avoid running up further fees and charges.