Here are some simple factors to keep in mind when trying to negotiate your short sale deals to save yourself time and money.
1) Undisclosed debts. Find out how much equity or loans the seller has on their home. It will help when making a case to the lender that they’ll never recoup their investment.
2) Time. Is the homeowner responsive to questions or lag on getting you information? If the seller is consistently slow, you may want to reevaluate the investment.
3) Meet all owners. If you’re going to invest in the property, you need to look at the deed. In the event of a divorce or separation, the distressed homeowner may not be the only person on the deed. You need to receive all necessary permissions from all owners before proceeding with lender talks.
4) Obtain a solid contract. Get all the contracts and cover all your legal bases – refer to an attorney or real estate agent.
Make a checklist of the things that are necessary for you to feel confident when taking on a negotiation for a short sale. If the property or the owner do not meet your criteria, you will probably be better walking away.