What is a Shortsale? 
A Shortsale in real estate occurs when the outstanding mortgage loans (liens) against a property are greater than what the property can be sold for. The lender is willing to agree to discount the mortgage in order to sell the foreclosure property to a third party buyer or investor. Especially, since the lender will have to spend more money to foreclosure and resell the property than by discounting the mortgage loan. Moreover, the lender can end up with the foreclosed property as an REO (real estate owned) property that it will have to repair, hold, market and resell to even begin to get back their lost interest and profits. The lender is not in the business of selling defaulted real estate loans that are in foreclosure. Using our custom Shortsale techniques, all parties benefit. 

• The lender has their defaulted non-performing loan(s) paid off in full 
• The buyer or investor gets a great deal on a foreclosure at a discounted amount 
• The homeowner gets his or her closing costs paid
• The homeowner gets his or her real estate commission paid 
• The loan is paid off in full with no deficiency judgment
• The trustee’s sale is avoided 
• Foreclosure is avoided 
• The homeowner saves his or her credit 
• Bankruptcy is avoided and the homeowner has a chance at a fresh start 

Why should we help and assist the homeowner perform a loss mitigation case, rather than do a Shortsale? 
Simple. “American Loss Mitigation Institute” is about helping and assisting the homeowner in whets in their best interest. This means that if the homeowner qualifies for loss mitigation, then we would help and assist the homeowner qualify for a workout plan with their lender to reinstate their mortgage loan. If the homeowner doesn't qualify for loss mitigation and is going to lose their home anyway, then we would help and assist the homeowner in a Shortsale of their property. Our company's policy, the federal lending laws and real estate disclosure laws require us to help the homeowner in what is in their best interest. We aren't about stealing the homeowners’ properties in a pre-tense of helping and assisting them. There are plenty of homeowner's that aren't going to qualify for a legitimate hardship of their property and subsequently are going to lose their homes in foreclosure. These people are going to need the services of a Shortsale and are the foundation of our business market. 

Why will lenders take less than they're owed? 
It's because of all of the actual costs they incur when they're forced to foreclose on a homeowner's property. A lender stands to lose a lot of money when it forecloses on a property. Foreclosure properties include most of the following costs: (1) attorney's fees, (2) trustee fees and costs of the trustee’s sale, (3) arrearages, (4) court costs and legal process fees, (5) holding costs, (6) high repair costs, (7) closing costs, (8) real estate commissions, (9) property taxes and insurance, etc. The average conforming loan costs a lender approximately $20,000 to foreclose on. A non-conforming loan costs a lender around $30,000. You can see why it is very advantageous for a lender to cash-out of a defaulted loan and get a foreclosure property off their books.

Why don't lenders want REO ("Real Estate Owned") properties?
Lenders aren’t in the real estate business of buying and selling foreclosure properties. They aren’t licensed realtors that are experts in getting rid of foreclosure properties. If the lender chooses to out-bid everyone at the trustee’s sale and not let the buyer/investor buy the property at an extremely low price as the highest successful bidder, the lender is stuck with the property. Also, most trustees’ sales are for all cash and require the buyer to purchase the property within 24 hours so the average buyer doesn't have time to get financing even if he did have the credit or financing. Our point is that only investors or the wealthy have the money to purchase these types of foreclosure properties at these public auctions. As a rule of thumb, most investors will only bid 50-70% of the after-repaired value (ARV).

Do I have enough time to stop the foreclosure? 
Yes. Until the sale date has passed, you have time to resolve your foreclosure by selling your property and negotiating a Shortsale. If you haven’t been served with a “Notice of Trustee’s Sale” setting the exact sale date generally, there’s plenty of time to submit a Shortsale offer to the lender and get it accepted. For individuals with a Trustee’s Sale date, we process our Shortsales immediately and get a Shortsale offer accepted before the sale date or request a postponement or continuance. If there isn't time before the Trustee Sale date, we get a postponement by submitting a request to your lender with all of the required documents for a quick submission. Time is of the essence. Submitting the complete Seller's Shortsale Package to the lender is essential and we require the homeowner to submit all of the required documents to us in a timely manner. We have a high percent of successful Shortsale offers because of our due diligence and follow-up. For those of you trying to do this alone without our help and assistance, you may find that they are in for a lot more than they bargained for.

How long does the "Shortsale Offer" process usually take? 
Depends. We can submit your Shortsale Offer from the time you submit all of the requested documents to us. On average, a Shortsale Offer on your property will take from 3-6 weeks. From the time a Shortsale package is submitted to your lender, we negotiate and perform our due diligence on your property in order to sell it. By taking certain concise steps, we increase the advantages of selling your home and getting the lender to approve and accept our Shortsale offer. If your sale date is before we can close, again, we simply get agree to a postponement or cancellation of the Trustee’s Sale date. We get this is writing.

Is all of our information private and confidential?
Yes, all submitted documents, statements and information regarding your case is completely private and confidential according to our company policies, federal lending laws and real estate disclosure laws. Any third party requesting information on you must have a written authorization signed by the borrower and/or co-borrower.

How can you find motivated homeowner/sellers to perform a Shortsale Offer? 
You have the best system in the industry to get leads and referrals from. The best lead generation system is from loss mitigation cases. If the homeowner doesn't qualify for loss mitigation workout, then the homeowner is a prime candidate for a Shortsale offer. You've got endless possibilities. Just consider the following lead generation tools you have: (1) foreclosure lists, (2) Notice of Defaults, (3) Court Records, (4) Real Estate Brokers, (5) Mortgage Brokers, (6) Property Inspectors, (7) Appraisers, (8) Advertising, (9) Road and Yard Signs, (10) Newspapers, (11) TV and Radio, (12) Web pages, (13) Internet sites, (14) Referrals, (15) Online marketing, (16) Banks, (17) Lenders, (18) Title Companies, (19) Bird Dogs and (20) Loss Mitigation clients to name a few.  Without a lead generation system you have no clients and without clients you are out of business.

What are the benefits to the homeowner, lender and investor/buyer? 
The homeowner can avoid paying for closing costs, real estate commissions, and the mortgage debt secured on their home. Homeowners can also avoid bankruptcy (which will remain for 10 years on their credit report), the foreclosure sale, save their credit, and start fresh without liability. The investor/buyer can perform a Shortsale without any money or financing, or out-of-pocket expenses. No other pre-foreclosure system can create equity or profits when there is none. The lender can avoid a costly foreclosure, save money, time and energy and get their mortgage loan paid off in full at the close of the Shortsale deal.

What are the steps and documents that are needed to do a Shortsale? 
Every single step and document you'll ever need will be furnished and discussed in depth for your complete understanding and use. You will receive actual letters "from" and "to" the parties involved using the Shortsale deals that Robert has done himself. You don't need any forms not included in this system. Various "hardship" letters are included as examples or templates that you'll simply have the seller complete and sign. All instructions, forms and documents are constantly being updated and revised for your continued success in the Shortsale business. Our forms and documents are some of the best in the industry and will help and assist you to stay out of trouble with proper binding contracts and disclosures. If you have any questions, you should consult with an attorney.

Should you buy a home at the Trustee's Sale sight unseen? 
Never - the risks are too great and uncertain, especially when you have to pay up to 100% of the purchase price at the trustee's sale as the highest successful bidder. It's not wise to go to Trustee’s Sales to buy foreclosures. You run the risk of paying too much for a property that you haven't seen the inside of (open house) to inspect for repairs and damages. You must absolutely be able to determine your labor and material costs for all repairs in order to estimate your profit margin. If you're wrong, you'll pay for it and even lose your money or investment property in the deal. This simply isn’t smart investing! We do it right for you in the first place.

 Who is going to be the investor or buyer and pay all cash or finance the purchase of the Shortsale offer? 
Robert will tie-up the property with his real estate forms and sell it to someone else without using any of his own money, credit or financing. He also structures every deal so he's not liable for the seller's mortgage payments or purchase expenses. It's simple, legal and ethical the way Robert conducts his Shortsale business. Robert practices and teaches his students to have the home sold, before you buy it. You should always have an exit strategy before you buy a home. Robert and his students do this every single week. This is as "risk-free" as you can make a purchase of a foreclosure property in real estate.

 Why would the homeowner want to sign over their property to you? 
The homeowner (seller) is willing to sign over their property because they will save their credit, avoid bankruptcy (especially after the new bankruptcy laws effective October 17, 2005), limit their liability (no deficiency judgment), salvage some of their equity, get the lender to report their account to the credit bureau as Shortsale/settled/paid-in-full, begin a rebuild their credit (a new fresh state) and obtain relief from their foreclosure action.

Can you make Money on Foreclosures with Shortsales Millions anywhere in America? 
Yes - Absolutely. First, there is an epidemic of foreclosures in America. Homeowners are facing a record number of foreclosures. When the homeowner gets behind in their mortgage payments, default occurs. Then the lender starts the foreclosure process in order to take back the home as security for the mortgage loan. The Mortgage Banker's Association states "28% percent of all mortgage loans are interest only loans. These loans are adjustable as interest rates climb. When the interest climbs, the homeowner can't afford to make the mortgage payments and they lose their home. 2nd mortgages constitute 37% percent of the entire mortgages being made nowadays. These 2nd mortgages are causing many homeowners to over-extend, default on their loans and get into foreclosure. In order words, we can supply you with countless statistics according to the U.S. Census Bureau and U.S. Labor Statistics for the continued increase in properties and homeownership that will end in default and foreclosure.

Why should I decide to choose "American Loss Mitigation Institute" as my choice for learning and practicing Loss Mitigation and Shortsale techniques? 
We have been in the business the longest, have the most knowledge, skills, experience and the best proven track record in the industry. Stan Schultz of U.S. Loss Mitigation has been in business of loss mitigation for over 23 years. No other loss mitigation company can compare or match this proven record for reliability or accountability. Robert L. Bolton of Shortsale Millions has been in real estate since 1970 with 35 years of experience, skill, education, and knowledge. Robert is also a certified real estate instructor for the state of Oregon and has helped hundreds of students pass the state real estate pre-licensing examination. Robert has bought and sold hundreds of pre-foreclosure properties throughout his career and continues to do so. Robert has a proved track record of reliability and credibility. Robert has written many other articles (How to Buy Commercial Property in Foreclosure, Getting the Figures to Match), books (Stop, Avoid and Get Out of Foreclosure) and publications to websites (The 10 Best Important Things to Do to Sell your Home, The 7 Most Important Steps When Buying a Home), etc

Disclaimer: OwnerWillCarry.Com takes no responsibility for issues that may arise between buyers and sellers of Real Estate advertised on this site. We recommend that you seek the advice of a competent Real Estate attorney before entering into any legally binding transaction.