A short sale of one of your real estates would mean that you fall short on the payment that you are able to give and not you have to get a mortgage note for your real estate of an agreement that the value of the payment that you have to pay for would be less than the original value of the loan in order to release the property from claim. A bank that will lose money or get less money from the loan that they gave can be classified as a short sale.
To point out an example of a short sale, there is this homeowner who attempted to put on a short sale for his house that currently has about 3 loans in its name. The real estate owner was at a default with notes 1 on 2, but with the 3rd note, he manages to pay to the lien on a regular basis every month. Given the situation that the first lien holder is already for foreclosure, the third lien holder could not allow to a short sale because the bank will not allow it to. Given the circumstances that the bank is bound to loose about a hundred percent on its loan balance, its internal rules will still not allow them to agree on a short sale no matter what.
You should first look for an owner that is under default and then you would get an authorization from him or her that agrees to negotiate with the bank. For you to start the negotiation for a real estate short sale, you would have to contact the department in the bank that is assigned to handle lost mitigations. The whole process would probably take about several phone calls before you get the right one, so make sure that you have patience on these things and don’t give up after the first call. Each of these properties are assigned to a specific person who would then tell you all about the information that you need about the requirements that you would have to pass for the short sale home or foreclosure process.
So after you have got all the details and the information about the requirements that you need to collect, you have to approach the home owner and then let them know about the requirements and paperwork that you have to collect from them to start the process. You should know that this is a sensitive process, so you should be very careful when asking the following information: financial statements, bank statements, and W-2’s.
It is also important that the home owner get to explain why they had problems in paying for the mortgage fees, so they have to submit a written letter explaining of the reasons regarding this matter. Judging by the mentioned facts, you can tell that you have to study real estate short sale very well in order to understand it fully.
Short Sale Homes Blog 