Negotiating a Short-Sale Deal

Negotiating a Short-Sale Deal

Check the feasibility of a short-sale approach before getting too involved. Short-sale investing occurs in the preforeclosure phase but not all preforclosure opportunities are short-sale opportunities.

David M. Petrovich, “The Short Sale Pro,” lays out the six basic steps to short sale success in his book, Short Sale an Ethical Approach:

1. Conduct a preliminary prequalification of the seller, the mortgage, and the real estate to demonstrate that it makes financial sense for the mortgagor and mortgage to agree that a short sale is in their best interest.

2. Gather information (field and empirical) for analysis and its manufacture into supportive data.

3. Prepare a compelling benefits-driver proposal.

4. Present that proposal to the appropriate body or individuals.

5. Negotiate terms for mortgagee’s approval.

6. Anticipate all obstacles, and then close the deal

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