How to do foreclosure short sales?

How to do forclosure short sales? Real estate short sales is not difficult if you know what to do. This Short Sale information website teaches how to do a foreclosure short sales in any state and in any real estate market.

Below are steps necessary to know how to do foreclosure short sales. The short sale process assumes that the short sale real estate investor already has a property under contract and in mind to do a short sale on. The short sale process takes place at the stage of the real estate investor dealing with the bank.

How to do forclosure short sales step 1

Before you start doing a real estate short sale, you need to know the value of the property you are going to short sale. If you have a realtor on your real estate short sale 'power team', you can ask that realtor to provide an estimate of the fair market value of the property. Otherwise, you can do your own analysis of comparables (comps). There are many websites online that will help you with finding market value of real estate properties.

How to do forclosure short sales step 2

When you know the value of the property you are going to short sale the bank, you need to add up all the cost of selling the real estate property if you are successful with the short sale. Usually a realtor or title company will be able to give you the estimate of closing costs.

How to do forclosure short sales step 3

Once you know the value of the real estate property and the cost of selling the property, you should now determine the amount the homeowner owed against the real estate property. This is usually the total of all loans against the real estate property.

How to do forclosure short sales step 4

Determine how much the homeowner is up side down on his or her mortgage. To do this, subtract the total amount owed by the fair market value or retail value of the real estate property. If the real estate property has any equity, the number will be positive. In case of a short sale, the number should be negative indicating that the homeowner owes more than his or her house is worth.

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