Every short sale investor has a specialty - that particular type of deal that they do better than any other. In many cases, the success of a deal can hinge on how familiar you are with the type of negotiations that go along with it. If you are just getting started in the short sale business, you may want to focus on a type of property or transaction that is easy to find right now, in today's market, in order to maximize your ability to find and do deals.
One way to maximize your opportunities is to familiarize yourself with the HAFA process. HAFA stands for Home Affordable Foreclosure Alternatives, and it is the federal program that the government has designed to help homeowners who cannot keep their homes avoid foreclosures. This program is mandatory in many cases - particularly if a home is owner-occupied - so being familiar with the process, which is still relatively new, can give you a huge advantage in the short sale process.
HAFA homes frequently come with a long list of requirements that may discourage other short sale negotiators. For example, before homeowners can qualify for HAFA, they have to attempt to qualify for HAMP (Home Affordable Modification Program), a federal program designed to modify mortgage terms to help homeowners remain in homes. Even if a homeowner just wants out of a home, if they want out through HAFA - and the incentives that come with this program - they have to try HAMP. Your ability to navigate the HAMP process can make you a more attractive candidate to ultimately perform their short sale.
Of course, you may want to steer clear of the complications of federal programs all together. In that case, you will want to look for homes and homeowners who simply cannot qualify for participation in HAMP and HAFA, since people who do qualify are often required to go through the entire process whether they want to or not. You might want to specialize in vacation homes, second homes, rental properties or other types of properties that can and are distressed in this economy, but are not owner-occupied.
No matter what area of specialty you choose, creating a short sale niche for yourself can be a great way to get moving in this business faster. Also remember that there are many short sale investors out there who are looking for their own specialty deals, so if you encounter a deal that does not work for you, you may still be able to monetize that lead if you know someone who is looking for that type of deal or property.
For More Great Short Sale Tips And Information Visit FreeShortSaleCourse.com
Comments(1)