This is the 3rd part of a three part series on how to do short sales. Let’s take a look at what you will need to know to do a short sale.

We have discussed how to find a person in foreclosure, what paperwork to gather for the short sale package and now we will discuss doing the deal.

1) The internal BPO should be your whole goal when looking to do a short sale. Do not let a BPO agent do an external BPO because that will not allow you the chance to show the inside of the house or influence the BPO agent.

2) The banks job is too get the highest price and your job is to get the lowest. Meet the BPO agent at the property and make sure they know the amount of rehab needed.

3) Once the bank has the package and the BPO it is time to negotiate. The package will have what you are offering which should be on the contract you submitted. If the bank wants $100,000 and you need $50,000 then it will be tough negotiating a $50,000 discount. That’s why the BPO is so important because the banks number is based on that agents report. If there is a $1,000 to $15,000 difference between your price and their price then your chances of a successful negotiation is good. The closer the bank comes to your price the better.

4) I never negotiate with the loss mitigator over the phone I always fax my offer with supporting documentation.

5) Negotiating with the loss mitigator can be fun but understand your high price and walk away if they will not work with you. They are hundreds of deals so do not get hung up on one deal.

6) If you come to an agreement on price then you have 2 weeks to 6 weeks to close on the property. This will all depend on what you have negotiated with the loss mitigator.

7) The loss mitigator will send you over some paperwork to give a date when you must have it purchased with instructions to your title company about the closing paperwork.

Best of luck and one final note make sure you do a title search on the property to ensure the title is clear before buying.

Learn how to buy foreclosed, bank owned and short sale property at huge discounts. To learn more visit us at http://www.CollegeOfREI.com

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