Short Sale! Renovated Townhome

Listing Details

406 Selier Ave, Savannah, GA

Bedrooms: 2
Baths: 1
Year Built: 1900
Living Area 1242 Sq. ft
Offered at: $100,000
MLS Number: 113332

Renovated With Hardwood Flooring Throughout

Short sale! This beautifully renovated end-unit townhome is located in desirable Baldwin Park. The charming living room with fireplace and refinished hardwood floors creates a cozy room to relax or entertain in. Off the living room and through the arched doorway is a separate dining room with plenty of room for dinner guests. The bright kitchen is fully equipped, with ample cabinetry a small breakfast bar and access to the rear porch and courtyard.

Master Bedroom Has Special Features

The two bedrooms and one full bath with separate shower and tub are located upstairs. The Master bedroom has a fireplace and its own private second floor porch. The bathroom retains its early century charm with wainscoting, hardwood flooring, pedestal sink and old style tub.

Location Is The Best

The large courtyard is well landscaped with mature plantings beautiful garden and brick patio. Lots of charm! This property is also walking distance to local favorites like Al Salaam deli, the Starlander café, Green Truck burger joint and Blowing Smoke. An easy jaunt to red-hot Habersham Village and all that it has to offer. Convenient to Victory Drive, 37th Street and Abercorn. Less than ten minutes to Downtown Savannah.

To see more photos of this property click here.

Short Sale – a Good Deal?

Thinking of purchasing a short sale because you think you can get a good deal? It can be a very complicated process filled with many possible pitfalls.  A short sale means the seller is about to go into foreclosure, they owe more than the home’s current worth.  The seller’s lender must agree to accept less than the amount owed to pay off the loan now, rather than taking the property back by foreclosure and trying to sell it later. Lenders agree to a short sale because they believe it will net them more money than going forward with a lengthy and costly foreclosure process. This means when purchasing a short sale property you are actually negotiating with a bank – not the seller. Given this it is important when making an offer you consider things from the banks point of view. It is also helpful to be aware of what is going on in the market at the time. Banks are not settling with prices as low as they were a few years ago.

Should My Offer Be Low?

Among the key issues you must consider before making a bid on a short sale property is how any repair or upgrade work will be handled. Not all properties that are put up for sale as short sales’ will have any work done. Many properties are sold as is, which of course means you will be doing the repairs. So using needed repairs as a negotiating tool for a lower price may not be an option. If however after seeing what obvious repair work is needed you are still willing to proceed with a bid there are few things that would be helpful to know. Before writing a short sale offer, a buyer should ask his or her agent for a list of comparable sales. Banks are not in the business of giving away a home at rock-bottom pricing. The bank will want to receive somewhat close to the current market value. The short sale price may be much lower than comparable sales, or what the lender may accept. If the comparable sales don't support the sales price, it's unlikely the bank will accept your offer. So your offer may have to be equal to or higher than the short sale price, especially if there are other offers on the table.  If there are certain closing costs that the seller typically pays, the bank will most likely pay those fees. However, if you agree to pay part of those fees, even if the bank receives an offer identical to yours, your offer will net the bank more money. A big question on the short sale seller's mind is whether the buyer is financially capable of closing the transaction.

So make sure to include a pre-qualification letter from your lender. Here is a list of the paperwork your agent/broker should be sending:

• Listing agreement
• Executed purchase offer
• Buyer's pre-approval letter and copy of earnest money check
• Seller's short sale package – make sure your agent/broker assures this is complete

If the package is incomplete, the short sale process will be delayed. In this event, the bank might even shred the package. So make sure your agent/broker has some experience with short sales. As a buyer you may wait a very long time to get a response from the bank. It is imperative for the listing agent to regularly call the bank and keep careful notes of the short sale process. The key to a successful sort sale is careful documentation of every piece of paper, every record, and every lender interaction. Some short sales get approval in 2 to 8 weeks. Others can take 90 to 120 days, on average. If you're running past 120 days, it's possible that the listing agent or a third-party negotiator is not on the ball and is lax about calling the bank. Calling the bank means waiting on hold anywhere from 10 minutes to an hour or longer. Or, a lengthy short sale period can also mean the bank has internal problems, not enough staff or has lost the file a few times, prompting the listing agent to resend the package over and over. It can also mean that the appraisal is substantially higher than your offer, and the listing agent is building a case for a new appraiser.

Patience is key. You'll most likely eventually get short sale approval. 

Charming Parkside Bungalow Short Sale a Steal!

1318 E. 51^th Street Savannah, GA 31404

Listing Details:

Year Built: 1933

Bedrooms: 2
Baths: 1
Living Area: 1148 Sq. Ft
MLS Number: 111365 
See our website for more photos.

Beautiful Setting in Historic Parkside

This charming brick bungalow stands on a corner lot in the historic Parkside neighborhood-one of Savannah's most desirable areas. Leafy shade covered streets and Craftsman style homes are a hallmark of this midtown neighborhood. Located immediately adjacent to Daffin Park, Savannah's largest, though less famous green space, Parkside is a quaint close-knit community offering an affordable alternative to Ardsley Park, its cousin to the west. The Waters Avenue corridor provides access to local businesses and boutiques as well as a quick route to the South-side or Downtown Savannah. Beautifully restored hardwood floors throughout create a cozy feel for this well light bungalow. Plaster walls and detailed crown moldings accentuate the quaint period architecture. A wonderful breezy sun-room with louvered windows is a relaxing place to sit and enjoy a cool glass of lemonade during the summer months. In the winter step right from the sun-room into the living room and warm up in front of the tiled and molding framed fireplace. The cozy dining room located right off the kitchen is well lit with two well placed windows.  

Ample Light & Counter Space in This Kitchen

The updated kitchen is Terra Cotta tiles and is complemented with newer quality wood cabinetry. Two windows provide ample light for the well laid out kitchen. Modern appliances with a microwave over the gas range are wonderful to work with in this kitchen, which also has plenty of counter space. There are two bedrooms and one bathroom downstairs and a bonus room in the walk-up attic that could be converted to a third bedroom. There is even a one car garage with a rear deck overlooking a spacious backyard.

Location, Location, Location

Parkside is repeatedly on the "Best Of" lists, the area is highly sought-after because its proximity to Savannah's second most famous emerald jewel - Daffin Park. The park is home to multiple ball fields, tennis courts, volleyball courts, swimming pool and minor league baseball stadium. A perimeter sidewalk is a favorite run/walk for Savannah's outdoor lovers. This house is less than a mile from the soon-to-open Whole Foods Market/Chipotle Grill/Petsmart as well as the bustling Victory/Skidaway corridor and its shops and businesses. Access to the Truman Parkway is easy and the home is in close proximity to two hospitals and two shopping centers. Red-hot Habersham Village is also an easy jaunt away. This home looks like a steal!  Call Don for a showing of this home: 912- 232-8580

Over $70,000 in PRICE REDUCTIONS!

We've been busy slashing prices on our listings all over town! Over $70,000 in price reductions!

REDUCED $19,000 -- 2 East 61st Street - Now at $220,000 Clean, crisp lines accentuate the mid-century modern feel of this Midtown home.  Hardwood floors and detailed finishes throughout. Living room opens to dining room which boasts built-in corner cabinets. Open, bright kitchen has top-of-the-line stainless fixtures, granite counters, glass backsplash and beautiful cherry cabinets.  Three ample bedrooms and one full bath.  Sunroom overlooks lush, private garden/pation and well-landscaped yard.  Two car carport.  http://www.realestateinsavannah.net/2-East-61st-Street-a244722.html 

REDUCED $15,000 -- 618 East 55th Street - Now at $250,000Gracious Colonial Revival brick home just one block's walk to Hull Park. Generously sized living room with cozy fireplace and built-in shelves.  Separate dining room and beautifully done family room. Kitchen boasts custom cabinetry topped with granite countertops.  All appliances are top-of-the-line. With three bedrooms, one full bath and one half bath this lovely home ambles over almost 2100 sq ft. Quiet, fenced yard with nice plantings. Very convenient location; close to booming Habersham village, hospitals and Twelve Oaks shopping center. An easy hop to downtown and the Truman Parkway as well. http://www.realestateinsavannah.net/618-East-55th-Street-a255051.html 

REDUCED $17,000 - 137 Moonlight Trail - Now at $159,000 Wonderful Craftsman style home in Rice Hope subdivision in Pt. Wentworth. Deep, shady double front porches. Spacious, open floor plan with wood floors up and down.  Separate dining room with detailed crown mouldings, wainscoting and trey ceiling. Open kitchen with stainless appliances and a breakfast area.  Four bedrooms and two and a half baths including large master suite with private porch.  Covered rear patio overlooks protected woodlands area.  Two car garage. Over 2000 sq ft. Rice Hope amenities include: clubhouse, parks, trails, playground, fire pit, Olympic size lap pool, water slides, lazy river, zero-depth entry pool and a splash garden. HOA dues include: lawn care, TV, internet, phone and amenities. http://www.realestateinsavannah.net/137-Moonlight-Trail-a252763.html

REDUCED $5,000 -- 307 West Duffy Street - Now at $344,000
One of the most creative homes in Savannah. Just three blocks from Forsyth Park, this single family home located in the Victorian District was reconstructed in 2003. The exterior was restored to its original condition. The interior however, was altered to resemble more of a cubist painting with multiple open spaces. It’s a true urban expression, respecting the exterior context while providing a tailored living expression within. The home utilizes sustainable practices; an instant hot water heater, great use of natural light and ventilation, bamboo floors, concrete and granite surfaces, low flow toilets, and all energy star appliances. The home has been nationally recognized through the Master Design Awards in historic renovations in 2009. http://www.realestateinsavannah.net/307-West-Duffy-Street-a249870.html 

 

REDUCED $5,000 -- 2346 Ranchland Drive - Now at $69,900This awesome little ranch house is located in the desirable Forest Hills neighborhood-convenient to Savannah State, Low Elementary and Jenkins High. Fully renovated, the house features a spacious livingroom with a fireplace flanked by built-ins. Separate dining room and fully equipped kitchen that opens out onto a sweet screened porch.  Each of the three bedrooms have ample closets and there is one full bathroom. House is crisp with fresh paint, new ceiling fans and tile floors. Great corner lot with huge, mature oak trees. http://www.realestateinsavannah.net/2346-Ranchland-Drive-a247893.html 

 

REDUCED $13,000 -- 7234 Albert Street - Now at $53,000 Short Sale! Our loss is definitely your gain.  This awesome house features a bright open floor plan with vaulted ceilings in the livingroom and kitchen. The breakfast area has a delightful bay window and the master bedroom has sliders out to a rear patio. Newer carpet throughout. There are 2 bedrooms, 1 full bath and a finished garage area that can be used as a family room or 3rd bedroom.  Rear patio opens onto a well-kept, fenced back yard. Located on a very well-maintained block. Extremely convenient location with easy access to Truman Parkway. http://www.realestateinsavannah.net/7324-Albert-Street-a245368.html

What is a short sale???

What’s a Short Sale
Judy Chapman (Koenig & Strey Real Living)
Try Googling What is a Short Sale, and you’ll get over 6 millions links to informative web sites.

So it’s no wonder many home owners are confused about Short Sales, what they are and what they have to offer. With so much information and misinformation floating around, it’s easy not to know which end is up.

From all the hoopla, you probably surmise a Short Sale is some thing good and also some thing complicated. To separate the wheat from the shaft, you want the simplest explanation possible. An explanation that will help you decide if a Short Sale is right for you.

Here’s the simple answer to the question, What is a short sale?

If you’re upside-down on your mort gage — meaning your house is worth less than your loan — you can still sell your house … as a Short Sale.
Here’s the long-winded definition:

A Short Sale occurs when, upon the sale of the property, the lender agrees to accept a pay off for less than the remain ing mort gage balance. The lender can for give the entire short fall as well as pay the seller’s closing costs, includ ing the real estate broker’s sales commission.
The loss can —.

Be completely writ en off by the lender
Partially or wholly paid off over time by the borrower through a promissory note  – or –
Partially mitigat ed through a lump-sum payment at the time of closing.
The lender may also seek the deficiency from the borrower post-sale.

The long and the short
For home own ers who can’t afford to live in their houses any longer — but can’t sell because they’re upside-down on their mortgage — a Short Sale could very well be the answer to a good night’s sleep. In fact, it may be the only viable way out of an impossible situation, stuck as they are between a rock and a hard place.

Doing a Short Sale is noth ing more than putting your house up for sale in the usual man ner, negotiating a solid contract with a qualified home buyer, preparing extra paper­work, waiting a bit longer for your bank to approve the Short Sale, and moving on with your life.

It doesn’t really matter the state of your financial situation. If you need to get out from under an upside-down property, the chances are high you can do it with a Short Sale.

Being upside-down isn’t the same as being inside-out
Cur rent ly, 25% of home own ers are upside-down on their loans.

Many of these homeowners have or will soon face adjustable interest rates that make it impossible to keep up with payments.
Others are experiencing hard ships, like job loss or illness.
Some have to make a change due to job relocation or family reasons.
Still others are in a negative cash flow position on rental properties.
And others don’t see the point of making payments on a house that will never recover from the real estate bust.
Unless banks forgive a portion of those loans, however, home owners are ‘under house arrest’ and can not sell.

This is where home buyers look ing for a good deal come into the pic ture.

Because buy ers must wait for bank approval, they’re only willing to purchase a Short Sale pro vid ed it’s at a dis count ed price. Depend ing on the condition of the house, Short Sale prop er ties generally sell for about 10% less than com parable ‘non-distressed’ hous es.

This kind of dis count makes your house that much more attrac tive to many home buy ers, who are usually investors and first-time home buyers. Some buyers who currently own a home but want to move up or down size are also will ing to make the plunge, provided the right opportunity comes along.

You don’t have to get dizzy from being upside-down
Because your lender must take a loss on its original invest ment, it must decide whether approving your Short Sale is a sound finacial decision. They do this by first exam in ing your financial position and then making sure the con tract ed price is the best possible price given current market conditions.

Getting right-side up
When you decide to do a Short Sale, make sure to take 2 crucial steps.

Treat the selling of your house with the same dedication and respect as you would a regular sale.
Under stand that a Short Sale isn’t guaranteed and requires flexibility, patience, and the willing ness to make it work.
Take it to the bank
Done right, a Short Sale can be successful. The emotional cost of doing one will be more than off set by being able to move out and move on.

     

CHICAGO SHORT SALESFIND SHORT SALE REALTOR(R)FIND ORLANDO RE

5 Mortgage and Foreclosure Myths

Here's a great article from Trulia blogger Tara-Nicholle Nelson on 5 mortgage and foreclosure myths. If you're facing a major decision regarding your home, remember to turn to the experts. For real estate advice contact us today to discuss your situation. Looking into a short sale on your home? Visit http://www.shortsalesinsavannah.net/ to explore your options. Just thinking about refinancing? Visit the Concierge page of DonCallahan.com for a list of local lenders.
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In a mortgage market that changes as quickly as this one, today’s fact is tomorrow’s fiction. For buyers, misinformation can be the difference between qualifying for a home loan or not. Sellers and owners, knowledge is foreclosure-preventing, smart decision-making power! Without further ado, let’s correct some common mortgage misconceptions.

1. Myth: Buyers with bad credit can’t qualify for home loans. Obviously, mortgage guidelines have tightened up, big time, since the housing bubble burst, and they seem likely to tighten even further over the long-term. But just this moment, they have relaxed a bit. In the last couple of weeks, two of the nation’s largest lenders of FHA loans announced that they’ve dropped the minimum FICO score guideline from 620 (which allows for some credit imperfections) to 580, which is actually a fairly low score.

At a FICO score of 620, buyers can qualify for FHA loans at many lenders with only 3.5 percent down. With a score of 580, the lenders are looking for more like 5 to 10 percent down – they want to see you put more of your own skin in the game, and the higher down payment lowers the risk that you’ll default. However, if your credit has taken a recessionary hit, like that of so many Americans, this might create a glimmer of hope that you’ll be able to take advantage of low prices and interest rates without needing years of credit repair.

2. Myth: The Mortgage Interest Deduction isn’t long for this world. Homeowners saved over $85 billion in 2008 by deducting their mortgage interest on their income tax returns. A few months ago, the National Commission on Fiscal Responsibility and Reform caused a massive wave of fear to ripple throughout the world of real estate consumers and professionals when they recommended Mortgage Interest Deduction (MID) reform, which would dramatically reduce the size of the deduction.

Fact is, the Commission made a sweeping set of deficit-busting recommendations to Congress, a few of which are likely to be adopted. Fortunately for buyers and sellers, MID reform is not one of them. Very powerful industry groups and economists have been working with Congress to plead the case that MID reform any time in the near future would only handicap the housing recovery. Congress-folk aren’t interested in stopping the stabilization of the real estate market. As such, the MID is nearly universally thought of as safe – even by those who disagree that it should be.

3. Myth: It’s just a matter of time before loan guidelines loosen up. The US Treasury Department recently recommended the elimination of mortgage industry giants Fannie Mae and Freddie Mac. I won’t get into the eye-glazing details of it here, but the long and the short is that (a) this is highly likely to happen, and (b) it will make mortgage loans much harder and costlier to get, for both buyers and homeowners. It’s possible that loans are as easy to get as they’re going to get. So don’t expect that if you hold out, zero-down mortgages will come back into vogue anytime soon. Fortunately, Fannie and Freddie aren't likely to disappear for another 5-7 years, so you have a little time to pull your down payment and credit together. If you want to get into the market, the time to get yourself ready is now!

4. Myth: If you don’t have equity, you can’t refi. Much ado is being made about how stuck so many people are in their bad loans, because they don’t have the equity to refinance their way out of them. If you’re severely upside down (meaning you own much, much more than your home is worth), stuck may be the situation. But there are actually a couple of ways homeowners can refi their underwater home loans. If your loan is held by Fannie or Freddie (which you can find out, here), they will actually refinance it up to 125% of its current value, assuming you otherwise qualify for the loan. That means, if your home is worth $100,000, you could refinance a loan up to $125,000, despite the fact that your home can’t secure the full amount of the loan.

If your loan is not owned by Fannie or Freddie, you might be a candidate for the FHA “Short Refi” program. While most mortgage workout plans are only available to people who are behind on their loans, the Short Refi program is only available to homeowners who are current on their mortgages and need to refinance up to 115 percent of their homes’ value. So, if you owe $250,000 on your home, you can refinance via an FHA Short Refi even if your home’s value is as low as $217,000. If you think you’re a good candidate for a short refi, contact your mortgage broker, stat – there are some in Congress who think that this program is so underutilized (only 245 applications have been submitted since it rolled out in September – no typo!) that its funding should be diverted to other needy programs.

5. Myth: If you’ve lost your job and can’t make your mortgage payment, you might as well mail your keys in. Until recently, this was essentially true – virtually every loan modification and refinancing opportunity required that your economic hardship be over before you could qualify. And documenting income has always been high on the requirements checklist. But there are some new funds available in the states with the hardest hit housing and job markets, which have been designated specifically for out-of-work homeowners.

The US Treasury Department’s Hardest Hit Fund allocated $7.6 billion to the states listed below – all of which are now using some portion of these funds to offer up to $3,000 per month for up to 36 months in mortgage payment assistance to help unemployed homeowners avoid foreclosure. Contact the state agency listed below if you need this sort of help:

•Georgia: http://www.dca.state.ga.us/housing/homeownership/programs/hardesthitfund.asp


View original article here:http://www.trulia.com/blog/taranelson/2011/03/5_mortgage_and_foreclosure_myths?ecampaign=anews&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2011%2F03%2F5_mortgage_and_foreclosure_myths

Do You Know a Homeowner Facing Foreclosure? Here’s A Way Out.

Headlines today are filled with stories about homeowners in financial distress—people who face a lender’s foreclosure on their home.

Millions of American home owners are wondering what to do.

Like most crises, this one has produced its share of rumors and misinformation. One of the biggest ones is “just let it happen." Why fight back, this line of thinking goes. It’s too emotionally draining, and the government’s loan modifications aren’t helping many people. Well, that’s only partly true.
While government loan modification programs have fallen short of the mark so far, there is another solid, sensible option for homeowners. It’s called a short sale—a sale to a buyer where the seller’s lender agrees to accept less than the full amount owned.

Why not be foreclosed? Why sell short? Agents who have closed hundreds of these transactions provide this list of reasons:

• Avoid the foreclosure stigma – Homeowners will always have to disclose that they had a foreclosure on any mortgage application and (many job applications) that they submit in the future. This can have an adverse affect on their future mortgage rates. Foreclosure is asked about specifically in credit inquiries. There is no seven-year time limit on this item.

• Protect credit score – Credit scores will be lowered by 300-plus points (per loan) by foreclosure. The impact of a short sale—about half that much.

• Improve eligibility for a government insured loan – The homeowner will be ineligible for a government insured loan for 5-7 years (only two years in a short sale). A foreclosure is the one credit report item that is almost impossible to have repaired.

• Avoid a deficiency judgment – Lenders can seek a deficiency judgment against the homeowner and collect any amount they do not recover at sale.

• Protect employment prospects – Many employers run credit checks on prospective employees. Foreclosure is one of the top items that will put a potential new hire, or even current employment, in jeopardy.

These are the top reasons, but there are more. An expert short sale specialist agent can give a full picture of the options.

One more tip. Don’t believe everything you read about how long short sales take and how few get finalized. Short sale timelines, while still longer than normal, are shrinking as lenders get their paperwork act together. I am a top short sale agents in your market. I know where to find buyers, and how to negotiate the buyer’s offer effectively with lenders and get the deal closed—so the homeowner can move on with life and recover.

Buying a Foreclosure

Interested in buying a foreclosure or a short-sale? Check out Keller Williams' Distressed Property E-book.

From KW.com:
The truth is: these markets demand most of the same things an ordinary market demands of buyers—only more intensely and pointedly:

Money: Buyers must be financially qualified and ready to buy. The best properties go quickly. Buyers must look strong to lenders.

Motivation: Buyers must be motivated to compete successfully. Keller Williams agents urge their buyers in this market to be clear about both their “motivating why" and their criteria for the property itself (size, location, condition, floor plan, etc.)

Location: Contrary to the rumors, prime buying opportunities exist in almost every neighborhood and price range.

Condition: Buyers should understand that repair costs are not necessarily large. The Keller Williams Distressed Property Buying Survey shows the average cost to repair to be $5,000—that’s less than 3 percent of the median purchase price in the U.S. today.

Expert Help: Finally, smart buyers know they need to be even smarter—they become a team with a local expert agent who knows local property, pricing, lenders, and the best listing agents. A strong listing agent can be a critical advantage in seeing a distressed property through from contract to close.

Putting the 'short' back in short sale

Tips on how to make process go smoother written by Steve Bergsman for Inman News

Lately, homebuyers are seeing more and more short-sale opportunities, but it seems as if fewer purchases are actually being completed. The perception in this case is correct. The short-sale process has become a nightmare: it goes on forever, sometimes never coming to a satisfactory conclusion even after months of effort.

All I can say is, "Hang in there, folks, help is on the way."

According to industry sources, the playing field will soon begin to make more sense to buyers as servicers (the folks who actually handle your loan) will either move at-risk loans to special servicers that are experienced in this field and/or set parameters ahead of bids.

"There are going to be a lot more short sales coming into the system," predicts Scott Thompson, a principal in Mortgage Resolution Services Inc. in Rancho Cordova, Calif. "Servicers have done a lousy job. They know it and are now looking to solve the problem."

This is a necessity, Thompson adds, "as right now the queues are long and getting longer day by day."

The short sale seems complicated -- mostly because it takes so darn long to accomplish -- but it's not. The basic short sale happens when the proceeds from the sale of a property are less than the balance owed on the loan (secured by the property being sold). The key in all of this is the lender accepting a price that is less than the amount owed on the property -- and the lender would do that to avoid a foreclosure situation, which can be a lengthy and sometimes costly process.

For buyers, a short sale is the chance to acquire a property at discount.

More often than not, however, the process has been gummed up. The numbers I hear are: just one to three out of 10 applications get accepted; and while the process can take as little as 45 days, it has been taking on average 90 to 120 days with some wayward dealings going on for nine months.

Here are some things that can be done to smooth the process:
1) Prequalify the listing agent. If the listing agent hasn't even started getting from the seller the key documents -- tax returns, bank statements, pay stubs, in short, the completion of the "hardship package" -- then the property should not be listed because the agent is nowhere near ready to close a deal.

2) When a property is found, demand a commitment from the seller. In lots of areas, such as California, there is a provision in regulations that allows the seller to continue marketing the property during the short-sale process. However, your agent should have written into the contract that you are the primary buyer and any other offers that come in are backup offers.

3) Many lenders don't look at a short sale unless there is a viable offer in hand. Every agent should have an arsenal of investor clients. If the agent representing the investors can't bring them to the table, she can then go to her investor base and say, "Would you make a fair offer on this property? That allows us to start the foreclosure process. We will give you a 72-hour clause to perform and then substitute a higher offer in there."

4) Broker price opinions are needed for sales, but since brokers doing the valuations are paid so little, they often do no more than a drive-by. However, if you can give the broker background on the property, list what repairs are needed and offer comparables, the valuation can be more accurate.

"The agent," says Valasakos, "is the gatekeeper to getting the short sale accepted."

Steve Bergsman is a freelance writer in Arizona and author of several books, including"After the Fall: Opportunities and Strategies for Real Estate Investing in the Coming Decade."