Real Estate Short Sales

Many lenders are reluctant to list a property as a short sale, since they feel that it has a very negative impact on the amount of money that they will ultimately get for it. As a result, many short sales are cleverly disguised in MLS and other listings. To be sure, people who aren't interested at all in buying short sale properties are none too pleased when they are duped into looking at one. What about investors who are strategically targeting short sales, though? How can they weed out such listings in order to save time and frustration? The following information can help.

Knowing the Lingo

Just because a listing doesn't explicitly say, "short sale," doesn't mean that there aren't other clues buried within it. Once an investor gets a feel for common short sale terms, he can zero in on topnotch possibilities a lot more easily. Many times, a short sale property is described as being in "pre-foreclosure," or as being "subject to bank approval." Phrases like "pre-approved by bank," "headed for auction," "give the bank time to respond" and "notice of default" are also often bandied about. An investor should look for listings that include these terms and phrases in order to find short sales.

Using an Agent

Even if an investor is well-versed in the various turns of phrase that can denote a short sale, he won't always have exceptional luck. Besides, poring through all of those listings takes a lot of time - and time is money. A shorter, more efficient strategy is enlisting the help of a real estate agent who is experienced in the local short sale market. Such a person will have very early notice of new short sale listings and could help an investor jump on such opportunities a lot more quickly.

Being Proactive

The best way to find short sale listings before other investors do is by taking a proactive approach to the matter. There are many great ways to do so; a few of the best ones include:

Staying Informed - Investors who would like to snap up great short sale listings should get into the habit of reading public announcements and court records. Those are the two places where clues about upcoming short sale listings generally appear. Over time, an investor can get a feel for which properties present the best opportunities; by acting early, he can beat other investors to the punch.

Using Print Ads - Sometimes, the possibility of a short sale doesn't occur to a homeowner until it's too late. Savvy investors can create simple print ads - like brochures and flyers - and target specific neighborhoods in their communities. When a homeowner knows that someone is waiting in the wings for short sales, they could be prompted to consider one. As long as the investor's phone number is prominently displayed, he could end up getting the first crack at the situation.

Face-to-Face Meetings - Listings are great, but they aren't always enough. Using the information that is culled from public announcements and court records, an investor could take a door-to-door approach to the issue. By explaining the short sale process to homeowners in person, an investor could open up new opportunities for himself. At the same time, he can help a homeowner avoid foreclosure.

There are thousands of short sale listings out there; the trick is finding them. Without taking the right approach, an investor could end up spinning his tires. The preceding tips are designed to help investors pinpoint the best listings, and to help them track down short sales in less conventional ways. In the end, thinking outside the box can sometimes work wonders.