Anyway to make money in short sales with no cash or credit?

[Kevin Means]

I'm curious to know how the short sale process work. I'm currently in Spartanburg, SC and have a seller that's trying to get of his property. He owes the bank 108K but he's looking into a short sale. I was in the process of looking for wholesale deals but and ran across this situation. Is there anyway I can wholesale a short sale deal? I'm trying to figure out a way I can make money on this deal.

Thanks for the help in advance Bigger Pockets family.

Kevin Means

[Rich Hupper]

Wholesaling a shortsale is difficult because the final decision maker is the mortgagee not the owner of the property. Shortsale means that the property is worth less than what is owed on the note. If the seller agrees to do a shortsale he may have the claim the difference between whatever it sells for and the balance on the note as income on his taxes. This could put him into a higher tax bracket which he will not like.  Also the mortgagee if they are on board with the shortsale will not sign an offer where the buyer plans to assign it to someone for a fee. The mortgagee will want the property marketed on the mls and will usually want to wait at least 5 days before considering offers. Remember they are trying to get what they are owed.