In the past, a whole lot of hard money selections, along with double closings and simultaneous closings made closing short sales a snap. However, with the liquidity crisis, mortgage fraud, and tighter limitations with lenders and title companies, closing short sales is not as simple as it used to be. However, there’s one easy method to close your short sale dealings without using double closings, simultaneous closings, hard money, or even the complex land trusts. That method is using back-to-back closings to acquire all of your short sale deals closed and funded on time. Back to back closings take a short sale deal and flex it into two distinct and separate transactions.
You can buy a home before it goes into foreclosure, if you manage to arrange a short sale. A short sale is when the homeowner sells the home to you at a price lower than what they owe to the bank or other lender. Short sales are a way of reducing the loan against the property, so it is more marketable. It means a loss for the homeowner, but there are many reasons why an owner may choose a short sale.
I assume that you already talked with the bank and initiated the short sale process. As a result, you have been sent the short sale package. If you ask, it can be faxed to you as well. You also have secured a buyer and have had the contract signed. The buyer (a local real estate investor) has sent you his prove of funds (or preapproval letter from his lender). At this point you have everything necessary to prepare the package.
Finding transactional funding is harder today than it was in the past due to the credit crunch, mortgage fraud and tighter restrictions with lenders and title companies. The days of easy credit are long behind us and due to the housing market decline a new popular way to make money in the real estate market is to short sell properties. Short sales have been around for a long time but have gained popularity with the drop in real estate values. Investors who close short sales deals will definitely earn great commissions these days.
