How to qualify a Short Sale candidate???
Hi!
I am talking to several potential sellers. What do I need to ask them in order to choose the best candidate for the Short Sale? Should I grab any potential deal? I guess I just need to know if the guy I am talking to will be a good opportunity before I can call the bank and start the process.
Thanks,
Dmitry.
Hi Dmitry,
I couldn't quite understand your post. Have you studied short sales here or in a course? Do you know what the criteria is for a short sale? There are some great articles and forum posts here on TCI that will give you all kinds of answers. If you go to the search feature in the forums or do an article search you'll reach the archived info.
All the best,
Mel
Hi Mel,
I do have a decent understanding of the Short Sale mechanics. I have gone through different materials up to date including books and forum articles. What I ment to ask is if you looking on 2 short Sale opportunities which are relatively the same (both have no equity and both are owe more then the property worth) should you work them both or choose one with the poorer condition because there may be a possibility to have the bank cooperating more easily?
I would work them both... what do you have to lose, time and energy? Like Dwan and Sharon say... it is worth the call..
Happy SSing.
Dmitry- Dwan and I work all the short sales we find, as long as the sellers are motivated. Just working 1 at a time will not earn you a great living. Imagine working on 1 short sale for 3 months that doesn't end up working out. You will be discouraged and unhappy and think this business is not for you. If you work lets say 5 during a 3 month period and only 2 work out. You have the potential to earn thousands on only those 2, making your 3 month experience wonderful. Now compound that and begin to think like a real estate investor. Best of success to you, Sharon
Sharon, Thank you for the advice!
I have posted an add into several local newspapers and let everyone of my friends and relatives know what I am currently doing. However, most of the calls I have received so far are not worth pursuing: the sellers are either not motivated enough (wants a lot of money upfront) or just wanted to see what is it I can offer and promises to call back. Since I am working full time and my nearest County Hall of Records are not available online (at least here, in N.J and N.Y) I don’t have a chance to go to the court room and physically get the leads.
Does it make sense to subscribe to one of the foreclosure websites for the potential leads and if it does make sense then which one would you recommend? I have heard that most of them are useless.
Your advice is very much appreciated.
Regards,
Dmitry.
[ Edited by Dmitry on Date 04/05/2003 ]
Dmitry-
The foreclosure websites I've heard of don't offer newly filed cases, rather REO properties already in the bank's hands.
When I first began investing, I subscribed to one of those and found out the hard way that they were REO's already listed with agents and if they were deals, they were gone. Being the last person to get the info wasn't where I needed to be; hence the courthouse and then later finding someone in my area offering a subscrition to the lis pendens. I'm not saying they are all like that, but if you have a real estate investment group in you area, call one of the leaders and ask about the specific service you need and how it's available to you. If you are not sure of an invesment group in your area, visit www.nationalreia.com (I hope) and it will list all of the groups in the Country.
Don't get discouraged, because ads are one of our top sources for leads, next to referals. Good luck, Sharon
Thanks Sharon!
No chance for discouragement on my side, I will make it work one way or the other, I know that!!!
I will definitely check all sources for the lis Pendens subscriptions in my area and will try to establish a contact with the local real estate investment group in my area.
Best regards,
Dmitry.
Since you have asked, I recommend either the print versiion of Foreclosure News of New Jersey, or the on-line version @ www.NJPreforeclosures.com.
You can access them from my website.
These both contain information that is available in your County Hall of Record's Lis pendens file room.
Since it's a monthly magazine, the information can be anywhere from 1 week old, to 3.5 weeks old. In my opinion, it doesn't matter who is first in line at the Homeowners' door, it's who has the best solution to the Homeowners' problem.
A nonprofit organization wrote a primer entitled, "What you should know when you face Foreclosure" which is a good read for distressed Homeowners as well as those who want to do business with them.
Are you bilingual? If so, use that your your advantage. Don't forget to place your classified in any newspaper that might be more thoroughly read by folks where ESL (English is a second language).