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Short Sale Training for Brokers
[August 18, 2008] by Broker-Trainer
Filed under: Short Sale Training for Brokers

Over my last several posts, I’ve introduced some business starting tips, the basics of marketing, and techniques for prescreening sellers for a preforeclosure based business, one that can produce thousands in profits. I’ve also mentioned what you may already see as an obvious reality, that being the current challenges in working the mortgage business. After all, what are the formal mortgage broker training, attendance at mortgage seminars, and time and effort that you’ve put in doing for you now? There has to be something else in today’s market. As someone who has had mortgage loan training and who I’m sure pays attention to the news and realizes how many foreclosures are out there right now, aren’t you ready to learn how you can effectively market to new clients, profit from the current real estate economy and, in doing so, earn 10 times what you would make for simply originating a loan?

In my discussions with you, I’ve also introduced my system for working this business that works and that works consistently! If you really think about it, a foreclosure investment course (or any real estate investment course for that matter) should focus on giving you repeatable results, not just something that may work for a few select people.

Now, let’s continue with a new series of posts, which covers an often overlooked but valuable part of working with preforeclosure sellers, that being the necessary paperwork you need to use. Since we’ve now covered both business basics and marketing, as well as the basics of sales and negotiations in working with preforeclosure clients, let’s see where we are at right now.

The power of paperwork

Paperwork basic necessities

Reinstatement paperwork

Short sale paperwork

Summary- lists of documents for different situations

Let’s start with the basics. For most kinds of preforeclosure deals, you will need some basic pieces of paperwork that will either be necessary or at least will make the process smoother. Examples of these documents are:

A signed authorization to release information

This basic document is one that you can obtain, even before a seller is ready to firmly commit to doing business with you. Basically, it is a permission slip that the seller will so you can talk to their lender(s) and should be a document you are quite familiar with as a mortgage broker when requesting payoff statements. It may seem like just a formality but I don’t know of any lenders who will discuss mortgage details with you unless you have one of these so it is real important.

A disclaimer

Protecting yourself legally is part of the real estate investment business and preforeclosures are no different. The reality is that sometimes deals don’t fly. There may be issues (e.g. bankruptcy) that can cloud your ability to work with the seller and, believe it or not, the seller may not inform you of such things up front.

A standard disclaimer will enable you to back out of the deal is issues come up with things like the title, the property’s condition, or even their financial situation. Remember, out goal is to be able to help as many sellers as possible but the transaction must also be viable from a business standpoint. When issues do arise, you need to be able to retreat without consequence.

Copies of the seller’s financials

One of the ways to avoid potential pitfalls in a preforeclosure deal is to have all the facts up front. Much of the facts pertinent to your deals will revolve around the seller’s finances, specifically their mortgage, which should tie in nicely with your mortgage lending experience. Even if they haven’t made a payment in months, they should still have some documentation sitting around and it is good to obtain copies of as much as you can so you can more effectively research a solution.

In summary for this post, I’m sure you can now see how important the paperwork aspect is to your preforeclosure business and also how the overall content of my free foreclosure investment course allows you to follow this business at a pace that matches your lifestyle. Since you are in the mortgage lending business already, the idea of paperwork with clients should be something that you are well on top of, again a huge advantage you have over other investors. The mortgage lending business is intimately tied to real estate and puts you in a great position to profit from the booming preforeclosure market. Please take the time to review the action steps and tips from all of my recent posts and make sure you’ve paid attention because we’re going to move onward and forward and I want you to be in an ideal position to act upon what you are learning. Stay tuned, I have so much more to share with you, and all the best to you in success.

D.C. Fawcett

The Short Sale Expert to Mortgage Brokers

To get a Free Short Sale Training for Mortgage Brokers,

Short Sales for Brokers

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