SHORT SALE in regards to real estate. If anyone has ever dealt with a SHORT SALE i'd like to hear how hard , long or if it was even worth the trouble dealing with the banks as far as an oportunity to make money. Oldtrader? sparahook?? anyone?? talk to me boobey.....
Conceptually it is no different than that of acquiring distressed real estate. You determine what the property is valued at and make an offer. You'll need to find out how much is owed and how many mortgages are involved. You may come across situations where the primary mortage company is willing to work with you but the secondary mortgage company won't budge. As far as profitability goes - it depends on how much you sell it for and how quickly. No different than any other real estate transaction.
thank you for the reply ....i actually know the mechanics of it....was just wondering why some people have told me as far as an investment it isnt a good route....and ive also read this on the web,,,,,why do you suppose that is?? thanks in advance for any info...
There is much more paperwork and negotiating involved compared to foreclosures. Also tracking the properties is much more difficult since you would have to know which properties are in threat of foreclosure before it is actually published. Other than paying an agent a hefty commission, it would entail some cold calling to mortgage companies...and then seeing if what they have available is even worth investing in. If you are considering investing in real estate, buying foreclosures would be easier in my opinion. It would just be a more long term investment, as opposed to a quick flip. I figure it would also be a bitch to get a decent loan nowadays.
Also...with so many loans being packaged, sold, resold, etc...it may be difficult to track down who actually holds the mortgage.
thank you.....yes i am considering buying short sale and/or forclosed properties for the long term..if i can get a couple of deals..I am looking to start sometime in january not just yet...was thinking about doing what you said...cold calling some of the local smaller local banks credit deparment as opposed to the mortgage companies