subject: Buying Short Sale Homes [print this page] Author: Sam Johnson Author: Sam Johnson
For the real estate investor who is looking for profitable property deals today's real estate market screams for buying short sale homes! With thousands of unemployed property owners desperately trying to hang on to their houses and stall upcoming foreclosure, timing is perfect for profiting by purchasing property using the home short sale as a strategy. In business timing is everything and one man's loss is another man's gain. This unfortunate reality gives the shrewd business man or woman an extremely lucrative window of opportunity to create a fortune with a process called buying short sale homes. If buying short sale homes is a new concept for you then learning how to buy a home using the strategy will be your next step should you wish to take advantage of this lucrative market and opportunity. What is a Home Short Sale? A home short sale is sale in which the proceeds fall short of the balance owed on the mortgage or property loan. This type of sale most often occurs when a borrower can not pay the mortgage loan on their property, due to some unforseen circumstance such as job loss, yet is able to produce a buyer (an investor makes an offer) and the lender decides that selling the property at a moderate loss is better than pressing the current debtor, the market economy or both. Both parties consent to the home short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and a very poor credit report outcome for the borrower. It isn't a win/win type of transaction but the alternative looming on the vivid horizon could be even worse - for both parties. The present economy, with it's skyrocketing unemployment and cold real estate market equals opportunity heaven for skilled investors wanting to profit from buying short sale homes. You Need to Know What You're Doing Buying short sale homes isn't the cake walk some people would like you to believe. Just because a home is offered at a short sale price does not necessarily mean it is a great deal. For example ... The buyer could have bought during the height of the market and then added more debt by remodeling portions of the property that never increase the value enough to offset the cost. This of course could definitely be a reason for passing on the prospective transaction, no matter how motivated the seller may be. If the property doesn't have the needed value to allow you to make a nice profit even at the losing sale price then what would be your reason to buy it? And ... If the lender is much to willing to take a moderate loss you, the buyer, may not be making a killing at all. The lender may know something you don't and may not be willing to disclose. They, the lenders, may also be very unwilling to pay for inspections etc ... that could help you determine whether the home short sale is a structurally sound deal. Always remember ... If it's to easy somethings wrong because money doesn't usually fall from the sky and money lenders are not into charity contributions. The best advise I can give you is to take a course on buying short sale homes so that you learn exactly what is a good deal and what is not.About the Author:
For more information on how this home buying strategy works and how you can learn exactly how to become a pro doing it visit how to buy a short sale home
