You’ve decided to get involved in short sale real estate investing, and you have a deal working. A distressed seller has asked for your help, and you’ve even gotten to first base with the lender. Negotiations have begun, but have stalled out because there seems to be some apathy on the lender’s part for getting this deal done… what now?
Here’s the scenario- Mrs. Motivated called you six days ago with a house she needs to sell right away. Her husband walked out, leaving her saddled with payments of $900 per month, way over her head. She’s two month’s behind, with a mortgage balance of about $110,000, and a house value of about $125,000. Perfect conditions for short sale real estate investing.
Your initial calls to her lender went well. You reached Mrs. Motivated’s collections supervisor, who referred you to the lender’s short sale real estate investing department, otherwise known as “Loss Mitigation”. Ah, lenders and their silly names!
Miss Mercy, in Loss Mitigation, informed you that you would need to submit an offer, accompanied by proof of funds, to her office on a form that she would provide. You happily complied, offering $90,000. Your hopes were high.
Miss Mercy has now applied the brakes in dramatic fashion, thus smashing your cherished little hopes, and those of Mrs. Motivated. On the phone, Miss Mercy expounded for several minutes on her bank’s policy, “never, under any circumstances whatsoever,” to accept an offer lower than the mortgage balance. And here you had been foolishly led to believe that short sale real estate investing was not only possible, but welcomed.
What to do… what to do?
You could definitely turn tail and run for the hills, leaving Mrs. Motivated at the mercy of… dare I say it, Miss Mercy! But that would go against your goal of helping Mrs. Motivated, putting several thousand dollars in your pocket, and being mega-successful at this game called short sale real estate investing. All fine goals which are not, by the way, mutually exclusive.
You could call Miss Mercy and rail against the system, pleading Mrs. Motivated’s just cause, and pulling at Miss Mercy’s heart strings. After all, that’s why you started short sale real estate investing in the first place. Fat lot of good it will do you!
Or, you could do what other smart, savvy, experienced practitioners of short sale real estate investing do… implement Pit Bull Theory.
Pit Bull Theory states, “I will NOT give up until I have gotten my huge, powerful jaws around the throat of the lender and shaken until the deal either closes or dies.”
How, then, does one close their jaws around a lender’s throat and shake?
You try back doors, front doors, and side doors, until you run out of doors. That’s what makes short sale real estate investing work, and to find out how to make it work for you, you’ll want to read more about it at Short Sale Real Estate Investing. Go ahead, it’s free!
Now, go make more offers!