By Deb McMillan
When I first stared investing in real estate almost 20 years ago, almost no lenders had systems in place to negotiate payoffs on defaulted mortgages.
They didn’t need them. They had few foreclosures to deal with, and many of the properties that they did have to foreclose on had significant equity.
But a growing glut of foreclosures are on the market today. As a result, short sales have become an incredibly hot topic in the real estate education world. (By the way, a short sale is a negotiation between the buyer, the seller and the bank that holds the mortgage. As the buyer, you ask the bank for a deep discount on the mortgage in order to purchase it before sheriff’s foreclosure auction.)
The reason foreclosures are becoming more and more prevalent is due to loose lending practices over the last several years. The banks allowed people to buy houses with no money down or borrow more than their home was worth. Now these same people can’t afford to pay their mortgages.
Most lenders are beginning to recognize that they profit more by avoiding the foreclosure sale completely. By avoiding the foreclosure sale, they don’t have to take yet another property back and hold it as an REO – Real Estate Owned by the bank.
Consequently, now is the perfect time to master short sales. The opportunities are everywhere, the opportunity to make a lot of money buying OVER financed properties at UNDER market value.
Profiting from the sale is not the only benefit you receive, however. An even greater benefit is helping the home owners on the brink of foreclosure save their credit. Save their peace of mind. Save the homeowner’s hope for a brighter financial future.
And isn’t helping others the most gratifying motivation of all?
I think so. That’s why short sales are now my primary way to acquire property. You should make it yours, too.
About the Author: Deb McMillan, OPHP, CMI, is a real estate investor and writer, living in Hamilton, Ohio, and has written a home study course on Short Sale Success Systems detailing how to get deep discounts from the bank when buying pre-foreclosures. She has been investing in real estate since 1986 and buying, selling, and teaching short sale strategies since 2000. She teaches how to talk to sellers to get them to do what is necessary to save their credit and reveals strategies to negotiate with the banks to get deep discounts when you buy the real estate. She also teaches about bankruptcy and what you can and can’t do once a homeowner files. Log on to http://www.shortsalesqueen.com for more information on how to make your deals close.
Source: www.isnare.com
