How to prevent foreclosure - Short sale your property to an investor

To prevent foreclosure, you may like to consider a short sale of your property to an investor. This makes sense if your property is worth less than what you can sell it for, after deducting selling expenses.

While you may also short sale your property through a realtor, be cautious as most realtors do not have a good strategy to sell the house in this situation. 

Typically, the house is listed for the amount of debt plus selling costs/commission, which exceeds the actual value of the property.  As a result, these properties typically do not sell.  I have seen nice houses being returned to the bank because of well-intentioned but inexperienced realtors.

Short sale means the bank accepts the reality that allowing the sale is better for the bank it will return them more than foreclosure. This has to be proven, and experienced investors know how to do this.

Prevent foreclosure - the short sale

An experienced investor will help you to prepare a package to convince the bank to lower its debt so the property can be sold and not foreclosed.  This includes a letter explaining the situation to the lender, plus various forms of documentation to prove that it is in the lender's best interest to agree with the request.  An experienced investor also knows how to delay the foreclosure auction if the homeowner needs more time to sell the property.