Buying Short Sales For Real Estate Investors
Why the Number of Short Sales Has Increased
The number of short sales has boomed. In some states the majority of sales are now conducted as short sales. So why has this situation occurred? During the recent real estate boom many people ended up borrowing massively to purchase their properties. 100% loans or loans with very little in the way of an initial deposit became common place. When the real estate bubble burst many home owners found them "upside down" Their home was no longer worth as much as the debt on that property.
These people simply could not afford to sell. If they sell the property they are left with no assets and a lot of debt. While the lender is within their legal rights to force a foreclosure this is often not an ideal resolution for them either. Foreclosures are expensive and time consuming and because of the large number of people who are now "upside down" political pressure is on lenders to come up with other ways of resolving the issue.
The primary alternative to foreclosure is a short sale. This is where a property is sold and the lender agrees to release the lien that is held against it for a payoff which is less than the money which is owed on the property. Many borrowers are not even aware that they may be eligible for a short sale and so there is a lot of opportunity in this investment area.
Let me end this article by giving credit where it's due. I was talking to Rob from Showers & More and the discussion inspired me to write this. Showers & More is a wonderful shower hardware supplier situated in Ontario and they have been very good to me over the years. Thanks for the idea guys! Ok, I'm formally signing off for the day. I'm exhausted. Till the next time!
Sources For This Article
http://titantransline.com - Where would I be with out you?
http://bounceevents.ca - Good business site.
http://www.dentistryonbrant.com - Use these folks on a regular basis.
http://crystaller.com - Where could I be with out you?
Posted in Real Estate Post Date 09/27/2015