WHOLESALE ON A SHORT SALE....Any Advice?

[Karen Tinley]

Hi.  I know a person who is preparing to do a short sale on their home.  I heard bells going off in my head.  I asked her to tell me what the bank needs before she puts the house on the market.  I've got buyers ready to go if the numbers are right.  My question is....What issues has anyone come across wholesaling a short sale?  Is it harder?  Is it easier because I personally know the homeowner?  Any insight would be much appreciated.

[David Dachtera]

@Karen Tinley,

Lenders do not allow wholesale deals on short sales. They are negotiating with you as the buyer - period.

That said, of course, you could use transactional funding to close the purchase, then resell. Just watch out for "title seasoning" requirements (you may need to buy it and hold it for 30 to 90 days before selling to your end buyer.

Also, understand that there is nothing "short" about a short sale other than that the money the lender gets falls short of what is owed. Short sales can drag on for months or even a year or more.