TIPS WHEN DEALING WITH SHORT SALE SELLERS – How do you know it is a short sale deal?

  1. When they are willing to sell the house for what they owe.
  2. When the house is upside down and you can’t pay as much as they owe on it.
  3. When they are too far behind on their payments that you can’t make it up and keep it as a rental or subject to deal.
  4. When the monthly payment amount is more than you can get for rent.
  5. When the house is trashed and the cost to rehab it is too high for the return investment.



  1. Know how much is owed for Homeowners Association Dues – banks only like to pay up to 12 months on HOA LIENS not balances
  2. Know if the home will have to be sold Cash or can go FHA – Repairs are important if the house can only be sold as a cash deal then you are able to use this during your negotiations.
  3. If your offer is denied, ask them where the offer has to be?  If that is too high, split the difference in the middle and see if they think they can get this approved based on that price.
  4. Knowing what type of loan you are dealing with ie. Fannie Mae (90-92%) , Freddie Mac (90-92%) doesn’t like investor buyers, FHA (88%), PMI (may require a promissory note) on the property – being knowledgeable as to the percentage that they are willing to take as a net on the deal and/or purchase price along with if they will even consider an investor as a buyer in a corporation name.
  5. If there are repairs needed on the home – you will need to have a repair bid estimate to send in to the negotiator to dispute the repairs that the BPO Agent/Appraiser did not include on their value.