Put Your Short Sale Team Together
The real estate investor’s ability to bring the pieces of the short sale puzzle together can create big profits and windfalls for real estate balance sheets. What investors are finding out is that short sales work. In the midst of the world’s deepest recession and with more than 1,000,000 American homeowners suffering foreclosure in 2008, mortgage holders have changed their stance on previously unwelcome short sales.
The new climate is wide open for short sale acquisitions. Banks have come to realize that foreclosure is the resolution of last resort. The cost of maintaining foreclosed properties in a down market loaded with excessive supply and dwindling demand has led banks to negotiate with qualified investors.
These investors can reap big profits by buying low and turning properties over in a relatively short time or by renting the properties until market conditions improve. The possibilities for profit are many.
The key to a successful short sale is to bring the vested parties together. With more and more homeowners with secured debt exceeding the value of the property and with rising unemployment placing more and more Americans in default, short sale opportunities are abundant.
Banks are allowing these “underwater” homeowners more flexibility than ever before. Today, banks are allowing short sales, often accepting less than they are owed in order to avoid ongoing maintenance. The investor who works with the mortgage holder will usually find a ready, willing and able lender.
Meanwhile, the owner avoids foreclosure and is generally forgiven for the remaining indebtedness. The homeowner’s credit may suffer but the damage is less than would result from foreclosure. With the unemployment uncertainty plaguing the nation, short sales are often the lesser of necessary problems and can often provide win-win-win scenarios.