Simulation: a fictional property for practice.

A short sale: can you close in 60 days?

A homeowner owes more than the house is worth, and the lender must approve any sale. Your hard-money loan expires in 60 days.

A fictional short sale through a listing agent. Never contact homeowners in foreclosure yourself; work through the listing agent.

• List price: $285,000, subject to lender approval
• Owed on the first mortgage: $330,000
• Foreclosure: A trustee’s sale is scheduled in about 60 days
• Your financing: A hard-money approval good for 60 days

Mission 1: How long will approval take?

What timeline do you plan for?

• Weeks to months, with no guarantee the lender approves
• About a week, like a normal sale

Short sales reward patience. Financing that expires quickly is a poor fit.

Mission 2: The trustee’s sale date

What do you ask the listing agent?

• Whether a foreclosure sale date is set, and whether the lender has postponed it for the short sale
• Nothing. The short sale stops the foreclosure

Know both dates: when the lender may approve, and when the house may be sold at auction instead.

With 60-day financing, do you offer?

Buy, investigate or pass? Work through the drill to see what an experienced investor would weigh.