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Millions of Americans are finding themselves upside down in their homes, not being able to sell them for what they owe against their mortgages.
There are solutions available to help these homeowners "dig" themselves out from under this stress and frustration.
If you need to see your home for whatever reason and the market won't allow you to sell it for enough to pay off your mortgage in full, then you might want to consider a short sale.
A short sale is defined as anytime a home is sold for less than the entire balance of the leins.
EXAMPLE:
You owe $200,000 on your house and you’ve missed 4 months of mortgage payments… The bank is requiring that you pay all 4 months of missed payments, all collection fees, plus any late charges… you don’t have the money, you have to sell your home but there’s no way you can sell your home for enough to pay off the bank.
Need to negotiate with your bank for you to “short sale” your home for what you can NOW and let you walk away.
With the current economy it will COST the bank more than allowing a “short sale” it at a reduced price.
It’s not rocket science but it can be tough if you don’t know how to deal with banks.
Is a short sale more beneficial towards me as investor or the bank as owner?
Thank you,
Gabriel Do Carmo
"You deserve to be successful"
Gabriel Do Carmo
www.gdc.usapropertywholesale.com
Short sales can be beneficial to the investor. You negotiate the purchase agreement with the owners and have a contingency in the contract that the contract is void if the lender doesn't agree to release their lien on the property for the amount offered. The numbers must work for you as an investor. Consider all the costs, your profit margin and whether the property meets the needs of those on your buyer's list.
The bank benefits from the short sale by saving the cost of foreclosure. The bank has to pay court costs, trustee's fee, eviction costs, etc. if they go through the foreclouse process. Most banks standard operating procedure is to list the property with a realtor which means they are paying a sales commission to sell the property. All those costs could be avoided by allowing the short sale. Unfortunately the banks take so long make a decision the short sale process that some investors chose not to go that route, they just wait until it is a REO.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Great information, thank you.
-Gabriel Do Carmo
"You deserve to be successful"
Gabriel Do Carmo
www.gdc.usapropertywholesale.com