Released on: December 11, 2007, 5:44 am

Press Release Author: Mary Geronimo

Industry: Real Estate

Press Release Summary: It Is Very Important To Understand The Entire Process Of The
Short Sale So That Everyone Is On The Same Page At The Same Time

Press Release Body: St. Augustine FL-It is very embarrassing when an investor is in
the dark about their real estate business. Always knowing at all times the area of
expertise will place the investor above the rest.

When the seller agrees to an investor to short sell their property what show up on
the seller's credit report is that the loan is paid or settled. There will be a
notation that says "settled for less than originally owed." The credit will still
be affected even if a short sale is accepted, approved and closed because of the
previous late payments. Finding buyers for short sales depends on the location.
Investors may advertise with bandit signs, in the local paper the local real estate
investors club meeting (REIA) and using the multiples listing service. Flat fee
companies can cut down on commissions. Call the investor and ask if they are
interested in purchasing the property. Some homeowners don't have a full
understanding of a short sale. A short sale is a workout plan that the banks have
in place to help homeowners and themselves prevent foreclosures. The mortgage
company agrees to accept less than the loan amount to them to avoid the foreclosure
process. The buyer would finance the acquisition or the investors can use creative
strategies. The seller can't profit monetarily from a pre-foreclosure short sale in
most cases. FHA programs will give an incentive fee of $500-$1,000 to the mortgagor
to participate in the pre-foreclosure sale program. Mortgage Company's will not
approve a short sale if the homeowner is in bankruptcy because approving a short
sale payoff is considered a collection activity. Documents needed in the short sale
package will depend on the lender. Each lender has different requirements. It is
typical to require authorization to release information, hardship letter, financial
statement, purchase and sales contract, settlement statement (HUD1), pay stubs, bank
statements and tax returns. The banks may ask for more so be prepared. Additional
documents are needed on FHA loans. All lenders require a BPO or full appraisal of
the property before making their final decision to accept or reject the short sale
offer. This is how the property is assessed so the bank can make a solid decision.
When a short sale can start in the pre-foreclosure process depends on the state and
the lender. To be on the safe side, allow a window of at least 30 days for the
mortgage company to approve the short sale offer. A Due on Sale clause (DOS)
provision in a mortgage or deed of trust calling for the total payoff of the balance
in the event of a sale or transfer of title to the secured real property. A
contract provision which authorizes the lender, as its option, to declare
immediately due and payable sums secured by the lender's security instrument upon a
sale of all or any part of the real property securing the loan without the lender's
prior written consent. Contact the local real estate attorney of that state for
more details.
Sometimes the bank will allow a short sale when the owner has equity. If a property
has what the lender would consider a substantial amount of equity the answer is no.
The lender has a better chance of selling the property closer to the retail value
after the property has gone into foreclosure. If the BPO appraisal can come in
lower than the market value the answer is yes. The investor's job will be to create
the equity in the home by negotiating a successful short sale and affecting the
banks value on the home.
Additional tips to creating wealth include: Follow the piles of cash. Find people
who have successfully http://FreeShortSaleCourse.com [created wealth] and learn from
them. Remember, it's not only what they know, but from whom they learn it. Learn
from someone who is more successful. Learn the tricks of the trade and
http://FreeShortSaleCourse.com [the best in short sale tips] from someone that has
actually built wealth and not just talk about it. Forget the past. It does not
matter who they are or from where they came. Everyone deserves to be a millionaire.

Contact Information:
Paramount Promotions LLC (The Countries Leading Short Sale Trainer)

Mary Geronimo
303-B Anastasia Blvd. #148
St. Augustine, FL 32080
904-819-0676
Email Address: mgeronimo@thejeffkaller.com
http://www.FreeShortSaleCourse.com
This Press Release has been submitted by PREasy.com


Web Site: http://www.FreeShortSaleCourse.com

Contact Details: Mary Geronimo
303-B Anastasia Blvd. #148
St. Augustine, FL 32080
904-819-0676
Email:mgeronimo@thejeffkaller.com