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For inventive real estate investors, building a short sale package is an easy procedure. Once approving on an adequate price with the property owner, you may choose to contact the lender to get a good feel for what their short sale expectations are and how they would like to see the package. As the bank makes the final decision on the deal, you should be in contact with their loss alleviation department immediately.

To get started developing your short sale package, find out from the property owner who currently holds the note on the mortgage. Because of the recent market shift, finding the actual note holder may be challenging. Regardless, find out who the lender is and get written permission from the property owner to contact the lender to discuss the note.

Get in contact with the bank who controls the mortgage and determine who would be responsible for allowing the deal to go through. This is typically a loss mitigation officer. Find out what the bank needs and expects in a short sale package as well as any specific details that will help the short sale purchase offer to be accepted.

After discussing the short sale process with the loss alleviation officer, start building your short sale package. Because this is a short sale, you need to provide as much proof as possible that the value of the home is well below that of the current mortgage. To help build your substantiation, bring in appraisers and contractors to give an estimate to the cost of rehabbing the property. Also bring in an appraiser to give you a true market value estimation of the property. This, along with letters from the homeowner stating that they can no longer afford to pay the mortgage must be included in your short sale package.

The next step is simply to submit your short sale package to the lender and wait. It will now be up to the lender to accept the offer, or reject it based upon specific reasons. However, if you have done your due diligence, and the home is in pre foreclosure, the chances of the bank accepting your short sale offer are relatively high.

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