Wholesaling Short Sale Properties in Mississippi

The short answer

Can you wholesale a short sale in Southaven, Mississippi?

Sometimes. No Mississippi wholesaler statute was found, but a short sale needs lender approval and your role in negotiating it may touch broker-license law. Keep the seller in charge of the lender talks unless counsel or a licensee advises otherwise.

A short sale happens when the sale price will not cover the mortgage. The lender must agree to take less, and that approval can take weeks. Read our short sale wholesaling guide and ask for a payoff statement early so you know what the bank is owed.

Mississippi’s broker definition in M.C.A. 73-35-3 covers people who negotiate real estate transactions for a fee or expected fee. If you speak for the seller to the lender and expect a paycheck, you are close to that line. The owner exemption in 73-35-5(7) is aimed at owners of the property. Read our license rules guide and ask an attorney.

The opportunity

Why short sales appear in DeSoto County

Southaven sits in the Memphis metro, with newer subdivisions and many buyers who bought near a high price. A job loss, divorce or rate change can leave a loan bigger than the house is worth. Those owners often want a way out that avoids a courthouse sale. A short sale is slow, but it can save them from foreclosure and give a buyer a discount.

Lead sources

Where to find short sale leads in Southaven

• Pre-foreclosure owners. Notices run in local papers before a sale. See our pre-foreclosure leads guide.
• Homeowners in hardship. Job losses and divorces can leave a payment unaffordable. Try divorce leads.
• Expired listings. A listing that failed at a high price may need lender approval. See expired listings.
• Direct mail. Letters to owners in Horn Lake, Olive Branch and Southaven can reach families early. Use direct mail.
• Phone outreach. Mississippi’s Telephone Solicitation Act sets hours and a no-call list, so follow TCPA rules and the PSC rules.

Your exit

Who buys short sale deals in Southaven

Buyers who are patient and flexible fit short sales best. Landlords, rehabbers and owner-occupants will wait for approval if the discount is real. Tell them that the lender can change terms, delay or say no, and that foreclosure may continue meanwhile.

Some buyers want the deal after approval and others prefer to wait until a bank owns the house. Compare routes in our REO guide. A deficiency judgment question can also come up, so owners should ask their own attorney what the approval letter says.

Step by step

How to start wholesaling short sale properties in Mississippi

1. Meet the owner. Learn the loan balance, missed payments, hardship and any sale date.
2. Get lender facts. Collect the servicer name, loan number and payoff figure.
3. Estimate value. Run the ARV calculator and the MAO calculator with repairs and holding costs.
4. Sign a contract. Include approval and assignment language and disclose your intent.
5. Submit the package. The owner or a licensed professional sends hardship papers and the offer to the bank.
6. Watch the calendar. Track any sale notice and talk to an attorney about timing.
7. Close with approval. Close only after written lender approval through an investor-friendly title company.

In this worked example, a Southaven couple owed $268,000 on a house near Stateline Road that would sell for about $245,000. The husband had lost his job, and payments were three months behind.

You put the house under contract at $232,000, subject to the bank’s written approval. The couple sent the hardship package, and the servicer approved the price after seven weeks. An investor took over your contract for a $7,500 fee.

The sale closed before any foreclosure date. The couple avoided a courthouse sale, and the buyer started a $14,000 repair plan.

Mississippi rules to know

Foreclosure timing, broker law and phone rules

Foreclosure in Mississippi generally runs through a deed of trust and a trustee sale, and 89-1-55 describes notice published for three consecutive weeks and posted at the courthouse. A statutory right to redeem after such a sale is generally understood not to exist, so timing matters. Treat these points as a starting guide and have an attorney confirm the current text.

No statute aimed at wholesalers turned up, and HB 1682 from 2026 stalled in committee and is not law. M.C.A. 73-35-31 sets fines and possible jail for unlicensed brokerage and lets compensation be recovered. Calls to owners also fall under the Telephone Solicitation Act, 77-3-701 and following, with calling hours of 8 a.m. to 8 p.m. Central under Public Service Commission rules. Check current text.

Learn it with a mentor

Work with lenders, not against them

Short sales reward patience and clean files. Mentorship students send us their hardship packages and offer letters, and we help them fix gaps before the bank sees them.

FAQ

Short Sale Properties in Mississippi: common questions

Keep going

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Read the full Mississippi wholesaling guide or pick another situation below.

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