If you’ve been investing in real estate, and more
specifically preforeclosures, then there’s no
doubt that you’ve come across a short sale deal.
A short sale is when the lender agrees to accept
less than what is owed against the property in
exchange for full acceptance of payment of the
loan. In other words, if the loan balance is
$400,000 but the bank accepts $300,000 as full
payoff, then a short sale has occurred.
Many investors find short sales different to
negotiate and complete. The reason is that
lenders are constantly changing their rules
and practices, and short sales by nature are
complex and time consuming. This is a reason
that many smart preforeclosure investors
today choose to outsource their short sales.
Outsourcing your short sales is simple.
You would still meet with the homeowner
and get all of the necessary paperwork to
ensure a complete short sale packet. But
after that, the ease and simplicity of
outsourcing takes over. The investor simply
sends the complete short sale packet to their
outsourcing company, and they are the ones
that then do all of the work on behalf of the investor.
The investor’s time is freed up considerably,
as they no longer have to sit on hold, fax
paperwork, or do other mundane tasks associated
with negotiating a short sale. The outsourced
short sale company takes care of all of this
work for the investor.
Outsourcing your short sales makes perfect
sense as a real estate investor. Since the
outsourcing company is working on many files
for many different investors, they are
building more relationships faster at a wide
variety of lenders. They have a larger rolodex
of contacts at more banks, and have a proven
track record of closing deals with many lenders,
thereby making their files and their deals
more desirable for the lender to look at.
In today’s world of outsourcing, it’s no longer
necessary for a real estate investor to negotiates
his own short sales. In fact, it’s not a good use
of their time. Preforeclosure investors should be
focused on buying and selling properties, not
negotiating short sales or faxing documents to
lenders trying to get a short sale deal closed.
Outsourcing short sales allows real estate investors
to work on more deals at once, and have a virtual
team of experts on his staff, without the overhead.
The best outsourced short sale companies are paid
on performance, after they have negotiated the
short sale deal to the price that the investor
has set. This makes outsourcing a no risk
proposition for the smart preforeclosure investor.