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The foreclosure rate is soaring in most areas of the country presenting incredible opportunities for pre-foreclosure real estate investors! There are a number of ways the informed real estate investor can profit from homes facing foreclosure and one of the most lucrative is the pre-foreclosure also know as short sale...
What is a short sale? Read the Homeowner section… |
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| HOW CAN EVERYONE WIN? |
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Bad feelings are often associated with respect to people making money over the misfortune of others. There are countless scams in the finance industry that prey on vulnerable people. These scammers rush in and get out quickly. They don't build long term viable businesses that are good for a community. Contrary to what many think, there does not have to be a big loser in order to make money in the foreclosure business. It is a matter of choice. A valuable service can be provided that benefits both the property owner and lenders. People with predator mentality do not last long in this business.
Undoubtedly, the issues leading up to foreclosure are stressful and potentially volatile for all parties. Unforeseen underlying problems often exist. A professional in the foreclosure business mediates a settlement that all parties can move on. In a short sale, the lender has agreed to settle the matter without further claims, and the property owner clears their obligations without the lingering negative effects of a foreclosure and subsequent garnishment of additional monies that auction did not bring. The professional will be thanked by all of the parties involved. Most importantly, the professional will earn a good financial reward.
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| WHAT'S IN IT FOR REAL ESTATE INVESTORS? |
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Knowledge of short sale investing gives the investor an edge in the highly competitive real estate market. Investing is all about getting an edge on the competition and making healthy profits. For the investor willing to do the groundwork, profits can be made without putting any of one's own funds or credit at risk.
Pre-foreclosure investing is one of the best-kept secrets in the real estate financing market today. Dominating short sales is an essential skill for pre-foreclosure investing. This kind of investment is not a convoluted get-rich-quick scheme based on optimized hypothetical markets. Short sales practices have been here since mortgages were invented by the Babylonians more than 4000 years ago. Deals are everywhere for those who are trained to identify them. Short-sales practitioners will always be needed as an alternative to expensive and risky foreclosure proceedings. Short sales acquisition strategies work best on over-mortgaged properties. And guess what, there is a plethora of over-mortgaged properties in the DC area.
When a homeowner stops making payments on their mortgage loan the lender is left with no other choice but to begin a foreclosure action. But lenders have a problem now - they are up to their necks in foreclosure properties!
They just can't afford to take back all those homes. It's too expensive to hold them, repair them and then try to sell them. That's where a short sale comes in.
If the lender does not want to own the home what can he do when a owner stops making payments? Well, one of the options lenders are using today is to help the borrower sell the home by forgiving a portion of the loan balance.
That's right, lenders will often allow a home to be sold for less than the amount still owing on the mortgage loan!
That's called a preforeclosure "SHORT SALE!"
Really? Will lenders really take less than what's owed? Will they do a short sale?
YES.... if you know how to ask! You must convince them that discounting the mortgage is in their best interest. You do that with a preforeclosure Short Sale Package.
The reason a lender requires a short sale package is to determine answers to the following three questions:
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Does the homeowner truly deserve a short sale? |
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Is it in the Lender's best interest to allow a short sale or foreclose and sell the house through a realtor? |
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Are there any hidden factors that might cause the lender to lose money if they foreclosed on the home. |
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The lender will always want to verify that the seller truly can't make the house payments before they will consider a short sale.
Before a lender will decided to accept a preforeclosure short sale he will take a detailed look at comparable home values, repair costs, realtor commissions, and holding costs. Some of the factors that will effect an preforeclosure investor's opportunity to arrange a short sale are: |
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Don't expect a lender to accept a discount just because it sounds good to you. If the lender thinks they will get a higher payoff by taking back the house the lender will turn you down. There are certain things you must do to make the lender understand that a preforeclosure SHORT SALE is his best option.
Once you know the secrets of what makes a preforeclosure SHORT SALE possible you have the key to startling profits. With the proper short sale package a lender may take a discount of between 50% and 80% of what's still owing on the mortgage loan.
For example, that means you may be able to buy a $100,000 home for $70,000..... an immediate profit of $30,000!
Now you have an idea of the exciting opportunities available to those who understand how to put together a SHORT SALE
Please remember my specialty is working with Sellers. And because of that the few investors I work with get information on numerous deals before the property is even listed on the MLS. If you would like to work with an agent “specializing in short sales” and would like to be privy to deals before other buyers then fill out the form below.
YOU WILL BE SENT A BUYER AGENCY AGREEMENT TO BE SIGNED FOR ANY PROPERTY LISTED BY MYSELF OR ANY MEMBER OF OUR TEAM. YOU WILL RECEIVE EMAILS PRIOR TO PROPERTIES BEING LISTED ON MLS.
IF YOU WISH TO BE CALLED INSTEAD OF EMAILED YOU WILL NEED TO SIGN AM EXCLUSIVE BUYER AGENCY AGREEMENT WHICH WILL MEAN THE BUYER AGENTS ON MY TEAM WILL WORK FOR YOU EXCLUSIVLY LOCATING PROPERTY. THE CHOISE IS YOURS.
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| Important links to educate about short sales: |
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| Federal Reserve's true goal: |
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| Economic experts have said that the real estate market is not a major factor in the Federal Reserve's true goal of keeping inflation in check – and its recent activity seems to bear this out. By strategically infusing billions of dollars into the banking system and unexpectedly cutting its discount window rate for 30 days, the Fed has clearly attempted to "bail out" the financial and credit markets. The real estate market, however, continues to suffer nearly double the number of foreclosures as it did this time a year ago – one in every 693 US households. In some states, the statistics are even worse, with foreclosures claiming one in every 199 households! |
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