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Article Title: All You Want To Know About Short Sale Investing
Author: Jason Dodge
Category: Investing, Real Estate, Wealth Building
Word Count: 552
Keywords: Real Estate, real estate investment, Short sale investing, property 
investing
Author's Email Address: [email protected]
Article Source: http://www.articlemarketer.com
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There cannot be any better deal in real estate than a Short sale. This strategy 
of buying property isn't known to many. Only real estate players and agents 
have been actively involved in short sale investing for a long time, but things 
are slowing changing and independent investors and home buyers are also getting 
to know about this lucrative investment option. 

Short sale can be carried out on properties that are in the pre foreclosure 
stage. In short sale property, the third party buyer can buy the property at a 
price much lesser than the outstanding loan amount. Here is how it works; first 
you need to approach the house owner as a third party buyer showing interest in 
buying his/her property. 

Convincing the owner will not be a difficult task since the owner would be in a 
vulnerable position because his/her property is on the verge of a foreclosure. 
Nobody certainly would prefer a foreclosure or auction of an owned property. 
Once the house owner gives his consent, you need to take a written approval 
from him/her and then approach the bank or the financial institution. You need 
to speak to the concerned department expressing willingness to buy the property 
and crack a lucrative deal with the bank.  In most cases the bank willingly 
agrees to short sale the property even if it incurs huge loses, as the process 
of foreclosing is expensive. 

Filling number of forms, paying fees and auctioning will cost dearly to the 
bank and is a time consuming process. Cracking a good deal is the most 
important aspect of a Short sale. The bank is already incurring losses and 
hence giving you more discounts on the property, might not be their agenda. 
Here probably your convincing skills need to work overtime. Remember two 
things, first, you are eager to buy the property and second, the bank is 
desperate to close the file and not interested in the foreclosure process of 
the property. 

So you see have an upper hand because huge number of properties are available 
in pre foreclosure stage. You may find very few banks who actually don't give 
discounts on the property cost, while most of them reduce the cost of property 
by 20% to 40% of its value.

One of the things to be remembered while selecting a short sale property is 
that you need to preferably select a residential property, as there might be 
some repair or renovation required. The other thing is bank is willing to give 
away such properties with little or no negotiation. A good research from the 
buyer will be required before selecting the property. 

Your share of contribution should be ready before you approach the Bank, as it 
will strengthen your position while cracking the deal. One of the most 
important aspects in the entire process is to procure the consent letter from 
the homeowner or a better alternative would be a property deed that details the 
understanding between the house owner and third party buyer. 

Many buyers ignore this and later face problems when the house owner retracts 
his/her decision. I am sure with all this information you can never go wrong 
with your short sale investment. So what are you waiting for, start finding 
properties that are on the verge of foreclosure and reap the benefits

Jason Dodge has been investing in real estate since the early 90's. He 
specializes in getting money for investing and recommend the free training at 
http://www.InvestSteps.com
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