Short sale foreclosure involves two types of real estate techniques. The first involves real estate that has been repossessed by the mortgage lender. These properties are also referred to as bank owned or real estate owned (REO).
The second type of short sale foreclosure references property which is still in the borrower’s possession, but on the brink of foreclosure. Lenders agree to accept less than borrowers owe in exchange for quick sale of the real estate. Short sale options are typically offered after all other options to prevent foreclosure have been unsuccessful.
One of the most prevalent trends in today’s real estate industry is the sale and purchase of pre-construction properties. This kind of real estate purchase has some particular assets and for this reason, has become a favorite of real estate prospectors all over the country. Typically, while in the pre-construction phase, builders offer great deals on soon-to-be homes. The idea being that buyers can pick homes or properties up at a reduced cost and benefit from the short-term appreciation. Many of these properties are then re-sold upon completion for a tidy profit.
With the housing market in a downturn and hundreds, if not thousands, of homes going into foreclosure, people are beginning to talk more about and pursue foreclosure investing. But, what is it and how does it work? Well, for answers to your questions on foreclosure investing, keep reading.
What is foreclosure?
Foreclosure is a process that is initiated when a homeowner is not able to pay the mortgage on their property or sell the home quickly or efficiently enough. The financial burden is no longer manageable and the house then becomes the property of the lender or bank. Typically, the property is later sold at a below-market prices in order to settle the outstanding debt.
How do short sales work? What are the down sides about buying a “short sale” home?
The biggest down side is that it can take months.
Also, the home owner may not have actually cleared the sale with the lender first. It is entirely possible that the sales price is a bait and switch. Low enough to get you interested, but even at full price there is no possible way the bank will agree to the sale.
While we don’t believe that banks are giving away houses for free, the Foreclosure Short Sales Real Estate Course says they can get them for pennies on the dollar basically. Then, to top it off, you won’t need to worry about credit checks or even income verifications. Last but not least you can make $25,000 in just a few weeks. Oh, did we mention this was all within the first headline and paragraph?
