As short sales become more popular, so does thepopularity of short sales.
This creative strategy can help investors make hugeprofits.
A short sale occurs when a lender agrees to a reductionon a mortgage in order to avoid default.
Possible foreclosure auction or bankruptcy Instead of buying directly from the seller, you can insteadbuy direct.
For a discount, you can purchase the property directlythrough the lender Example:
A homeowner facing foreclosure has a $300,000.0 firstmortgage.
You make an offer to the lender of $220,000. This isaccepted as full payment.
The loan. This isa quick sale. Why would they accept such aprice reduction? There are many
reasons. Banksdon't like bad loans and excess inventory.
Books; therefore, they will not be able to sell theproperty if they do not have enough of them.
They will take a big loss. Lenders know that they can lose much more.
If the property is sold, you will be charged money. If the property goes to auction, there are many fees.
If property is up for auction, they might be betteroff buying the discounted price
You can do it ahead of time and get rid of all thehassle.
There are many foreclosures all across the country.
There are many opportunities. Lenders are overwhelmed by the number of properties they canoffer.
Bad loans can make it difficult to inherit. Most lenders will accept short-term loans.
However, there may be a few who won't discount thesale. If you are looking for the bestdeals on merchandise,
For the lender, numbers work in their favor.
When the property is in pre-foreclosure, it is best tosell the property quickly
state. Yes, youcan short-sell the property if the bank holds it.
Your profits will be less than expected. Pre-foreclosure has two stages. This is the first stage for individuals who are behind inpayments.
The second stage is for those who are in default ontheir payments and have a notice of default. In
This must work correctly and you will be able to get aquick sale.
Find homeowners in the second or greater stage ofpre-foreclosure.
They are responsible for any outstanding mortgagepayments. After the notice of default isrecorded,
Banks are motivated, and you will be more likely toreceive a discount. You can't get a discountuntil that happens.
Banks will rarely discount mortgages so quickly. Why would they do that?
The homeowners have plenty of time to repay the loanand make the required payments.
No matter the condition of your house, all mortgages arepossible.
discounted. Shortsales are therefore one of the most efficient.
Techniques for discounting real estate loans Short sales create huge
If you want to be competitive, investmentopportunities are essential.
market.
The most important step in the short-sale process isgetting the
deed. This is acrucial step that many beginning investors skip. Why do we want
To get the deed from the homeowner(s). It is too common for homeowners to change.
They are afraid or want to withdraw from deals.
re-negotiate. Theycan't back out of a potential short sale without the deed.
After you have spent hours on their property. The homeowner signs
You have the deed transferred to you. Now you havecontrol of the property (subject too) and can go to
Call the bank to get started
