Offlinewhat is the first procedure in buying a property on a short sale? i am new at this and have a seller that is willing to sell his house on a short sale.the property is in pre foreclosure. please help.thanks in advance.
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what is the first procedure in buying a property on a short sale? i am new at this and have a seller that is willing to sell his house on a short sale.the property is in pre foreclosure. please help.thanks in advance.
It seems to me that the first step is finding the property.
There are three steps in buying any property, but they're not necessarily done in the same order on every deal.
Find the property,
Fund the deal,
Get the property under contract, and
Close
I think buyers should typically consider the one I have listed second before they should even start looking at properties. However, one can browse properties online, for instance, just for fun like one would browse anything else, like this site. But, it's important to have all of your financial ducks in a row before even seeking out a short sale deal or trying to purchase an REO.
I sell foreclosures for a living, and I talk to prospective buyers every day that either aren't financially qualified or who are pre-approved for a loan (not the same thing as being pre-qualified) who really have no ability to buy.
Just because someone logs onto some Web site, inputs some information, and gets a pre-approval, that doesn't necessarily mean they are qualified or able to buy. For instance, they may not have any money for closing costs, or their debt to income ratio may be off. An exception would be a cash buyer.
My point is, why waist your time and effort and those of others (realtors, bankers, etc.), if you have no financial ability to buy? So, again, I say one's best first step is to talk to a lender if one doesn't have cash. Many people here at this site, and many gurus for that matter, say that money isn't necessary to invest in real estate, and for the most part that is horse hockey. Of course, there are exceptions, but I won't go into that here, and those exceptions are rare. Many gurus make it seem as if those rare exceptions are the norm, and they are not.
"Rick in Amarillo," Realtor
Rick Allison, Realtor
Amarillo, Texas USA
Find comps, private lenders and cash buyers nationwide: www.TheRealEstate.PRO
Foreclosure and pre-foreclosure search engine: http://tinyurl.com/b6w7h6o
The People Helping People Movement: www.greatEPXsite.NET
Here's a link to a forum where short sale is discussed:
http://www.deangraziosi.com/real-estate-forums/my-deals/41809/closed-ano...
Also, if you type, "Short Sale" on the search box, under Dean's picture (on the upper left hand corner of this webpage), you will find a lot of forum threads started by other DGers.
Hope this helps! Good luck & Happy Investing!
Cris