Every short sale investor has a specialty – that particular types of deals 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 home or property that is straight forward, in today’s market, in order to boost your ability to find and do transactions.
One way to maximize your opportunities is to acquaint yourself with the HAFA process. The HAFA acronym stands for Home Affordable Foreclosure Alternatives, and it is 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 occupied by the owner – so being familiar with the process 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.
You may want to stay away from the difficulty of federal programs all together. In that case, you will want to find homes and homeowners who just cannot qualify for involvement in HAMP and HAFA, since people who do often qualify are equired to go through the whole 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.
It makes no difference what field you pick, creating a short sale niche for yourself can be a great way to get moving in the short sale buisness faster. Remember that there are many short sale investors out there who are looking for their own specialty deals, so if you stumble upon a deal that does not work for you, you may still be able to monetize that lead if you know another person who is looking for that type of deal.
If you haven’t signed up for www.FreeShortSaleCourse.com then you are really missing out.
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