Posted by David on July 31, 2003 at 10:47:41:
You can only get a short sale on properties that are in preforclosure. How we do it is: We have the property owner that is in trouble quit claim the property into a landtrust keeping them on as the beneficiary. This keeps the do on sales clause from being activated by the lender. The owner then can add you on as a beneficiary, 5% will work. You can then negotiate with the lender for a short sale. Once they have come to an agreement they will want to close pretty quickly. So while you are negotiating you are going to need to be working with your new lender so you can get it closed.
On a side note, negotiating a short sale is very time consuming and takes negotiating skills. It can be worth it but it is hard work. Email me if you have other questions.