Keys to Getting Your Pre Foreclosure Short Sale Accepted

This is a great article full of tips you can use when negotiating wholesales.

Why do banks accept some preforeclosure real estate offers and not others? You are so close to negotiating a short sale at a great price and the bank wants just a little bit more that eats up your wholesale fee, additional repairs costs, etc. They just want enough to mess up your deal. How do you get passed that?

The secondary answer is data.

If you can't prove in writing, what you are saying about your neighborhood, house, or street, the bank won't use that information to determine price. You must provide hard data to demonstrate everything you say.

Your preforeclosure real estate house:

* Is Ugly: have one to two contractor estimates to show the price of repairs. The structural problems are the biggest scare to banks. They also hate water up against the side of house causing dry rot and mold, electric not meeting code with lose wires, broken conduit, knob and tube wiring, anything that could cause a fire and destroy their asset. Erosion and drainage issues, foundation - unevenness in settling, and aluminum windows. Whenever these items are at the preforeclosure house, be sure to include them in paperwork to the bank. Pictures will help demonstrate these items as well.

* Will be on the market a very long time: have DOM (Days on Market) from MLS listings in the neighborhood to show how long it will be on the market. If it is a significant change since 3 months, 6 months or even one year ago, demonstrate those differences too.

* Is depreciating because they are selling new construction houses for less: Show the list pricing of the new (pretty) houses, square footage, etc. in comparison to your house.

* Is in an area where the foreclosure rate is increasing...by leaps and bounds-a tsunami of foreclosures. Show them. Include copies of articles where the writer talks about the rising preforeclosure real estate rate. Include pictures and graphs. Something they can see at a glance. Not a lot of words. I have some great graphs on the increase in house inventory and the decrease in area price sales I've gotten from the newspapers.

The Primary Answer to Getting Your Pre foreclosure Short Sale Accepted

And don't just give this preforeclosure information to the bank. Collect it and hand it to the BPO Agent. His/her number is what the bank bases their decision from. If the bank thinks the value is $180,000 and you think it is $150,000, then you didn't do YOUR job well enough with the BPO Agent or Appraiser. Give them the data you've collected and influence the final outcome early.

"Influencing" is not unethical or illegal. You ARE using data to demonstrate the real value in the area where your house is. You are NOT using fraudulent data, repairs, etc. You are saving the BPO Agent/Appraiser time in looking up data you already possess. Use it to help guide your outcome!

Good luck and success in all of your real estate ventures!

May all your preforeclosure real estate ventures have a positive cash flow!