Investing in short selling of real estate
Short-term real estate sales have played an important role in the real estate market over the past 2 years. According to the latest statistics, 1 out of 3 real estate transactions correspond to a short sale (s) or a foreclosure / REO.
Uno s.s. is defined by the bank / lender accepting less than what the homeowner owes on his mortgage.
The economic crisis and the consequences of the mortgage have forced many homeowners to leave their homes or try to do so.
A bank / lender will not consider a property for an individual. until the owner has at least 1 mortgage payment late.
Banks have finally realized in the last 6-9 months that the process is much cheaper. On average, banks will save about 30% of the value of the property by allowing the owner of s.s. instead of letting the property fall into seizure (if a bank takes it, it will usually have to hold it for about 6 months, then you’ll have to pay selling costs and most likely put in more money for minor repairs).
Uno s.s. it can usually take 2-6 months to complete. And this is if it is managed by an experienced expert negotiator. There are times when it can take even longer. However, banks have become more efficient due to the volume and capacity they have been forced to manage.
Short selling has become a great way for investors to make money. If the investor has the right negotiator in his team, equity can be created by demonstrating that the property has a value lower than the market value. This is done by devaluing the property due to difficult conditions. Again, with the right negotiations, the investor can make the bank accept less, then turn around and make a quick sale for a quick profit or make repairs on its own and put the property back on the market for resale . for profit.
Short selling has provided investors with an excellent opportunity to restore property value and earn money for their time, their patients and their efforts. I do not see the short sale that disappears so soon and as long as it remains, the investor will play a vital role in this market. All states have different laws concerning s. Be sure to check with a qualified real estate lawyer before attempting to make an investment.