With foreclosures reaching new levels and about to go even higher in 2008 it is imperative that Realtors and real estate investors become well acquainted with short sales and how to do them. There is a right way and a wrong way to do a short sale.

Learning and implementing the 5 secrets to short sale success will allow you to become more proficient at doing and successfully completing short sales.

Secret 1 - Submit a complete package. Do not submit an incomplete package to the loss mitigator because it will be put on the bottom of the pile. Make sure that all the required information is included in the order specified my the lender and that every item is complete and legible. I cannot emphasize enough that this is the critical first step.

Secret 2 - Carefully estimate the current value of the property and structure your initial offer accordingly Your initial offer is critical to getting the short sale off to a good start. As you do more and more short sales you will become familiar with how various lenders work and how they react to offers. Most will immediately tell you that you have to raise your offer. You need to address this by asking how the loss mitigator came to this conclusion. Your goal is to have the lender order an internal BPO or an appraisal of the property. Do not settle for a drive by appraisal. Be persistent buy not nasty in this regard. Keep at it until you get the BPO ordered.

Secret 3 - Be sure that you personally meet the BPO agent This is one of the most important parts of successfully doing a short sale. You must meet with the agent or appraiser doing the BPO (Brokers Price Opinion or Appraisal). You job is to provide the person doing the BPO with information that can influence the BPO toward a price that will justify your offer. You should speak the BPO agent and let him know that the seller is in dire straights and is depending on the BPO. You should have a good list of repair estimates and most importantly have a good list of comparable sales showing that the property is worth substantially less than what is owed. Of all these items the most important one is meeting with the person doing the BPO. Do not let them get in the property without you being there. Be sure to be early for the meeting.

Secret 4 - Don't take No for an answer The job of the loss mitigator is to get the case settled for as much money as he possibly can. You have to realize that there are certain circumstances that will limit the amount that the lender will take. Some of these are PMI (Private Mortgage Insurance), Fannie Mae, Freddie Mac, FHA and the VA. Loans that are insured by private or governmental agencies are limited in the amount of discount that they will take. If it is a conventional loan the settlement amount is arbitrary and determined by the end lender or the investor holding the loan. If you are dealing with a servicer rather than a direct lender your negotiations have to be approved by the note owner before a price is agreed upon. Your continued persistence will determine your success in getting prices that allow you to create a profitable transaction..

Secret 5 - Be sure you are prepared to close promptly Once you have finalized your negotiations the bank will expect your to close quickly. Usually within 2 to 4 weeks. If you are unable to close within this period you will have a very difficult time negotiating with this lender or servicer in the future. This problem does not usually arise if you are the end buyer but if you are planning on "flipping' the property out to another end buyer you need to be sure that they are ready to close when you finalize the negotiations for the property. One way you can stall this is to slow down your negotiating for the final price until you secure your end buyer. Sometimes this can really work to your benefit when the loss mitigator calls you to see what is holding up your final acceptance of an offer.

Certainly there is much more involved in doing short sales but these 5 steps are critical in getting a successful resolution to a short sale case. Remember that you have to be persistent and polite but do not take no for an answer. Push on and you will succeed.

More info on your stop foreclosure information search:

Get Free Foreclosure Advice and Free Refinance Quotes
Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...

Succeed In Short Sales
Are you looking for discounted property? Then short sales are a great way to obtain a property below retail price. Everybody knows that the quickest way to succeed in real estate is to obtain properties at a discount for either holding or flipping. Short sales are an excellent way to accomplish ... more...

Short Sales - 3 Key Factors Gurus Never Tell You About How To Do Short Sales
For those of you who are new to the Short Sale arena or new to real estate investment, let's first define what a "short sale" is and what it's SUPPOSED to accomplish. A short sale is the process of negotiating with a Mortgage Lender to convince them to accept less than the Homeowner's mortgage ... more...

Short Sales - Tips For A Successful Loss Mitigation Transaction
Short sales can be a life-changing option for many people. Although it can be painful to walk away from your home, it's important to realize you can make any house a home. If you are facing foreclosure, real estate short sales can provide you with the opportunity to break free from the bondage of ... more...

Short Sale Questions
The main stream media continues to be rich with stories about the struggling real estate market, here in the Sacramento area as well as across the country. They generally revolve around the increasing number of foreclosures, the mortgage crisis and now some of the government programs that may or ... more...