Short Sales

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I a very new to investing and in the learning mode. I attended a seminar at my local REIA and several individuals discussed investments through short sales. I also heard someone talking about loss mitigations. Are they one in the same?

[ Edited by investornewbie on Date 10/21/2005 ]

Comments(6)

  • TheShortSalePro23rd October, 2005

    No, "loss mitigation" is a process employed by anyone/anything that anticipates loss... and, proactively tries to minimize that loss.

    In the context of foreclosure, a "preforeclosure short sale" is a loss mitigation technique that could result in a reduction of loss..

    "Loss Mitigation" could also be a forbearance plan, a simple reinstatement, a reamortization, or any device under the sun that seeks to reduce the mortgagee exposure to loss.. including the sale of the loan to another Investor.

  • mojojojo_13rd October, 2005

    how much equity is there? this is hard money with that fico. she will need a lot.

  • bigdredd3rd October, 2005

    my solution was putting someone else on the deed with a better credit score like her husband so the loan will be okay. I need creative solutions just like the website says.

  • Sham7185th October, 2005

    Since im new to investing, ill give it a shot but dont laugh!
    Im not sure if a lease option would work well for her and an investor here. But here goes a solution (critique welcomed), Sell the home to an investor and lease it to her with option to buy. Sounds like a win win to me, not sure what you think.

  • getitqwik23rd October, 2005

    You have too many variables for a five second answer. What is cap rate. How much vacancy rate, number of units, rents collected, CAM, reserves, repairs in progress, repairs actually needed? Monthly mortgage payment, insurance payment, tax payment. Maintenance and upkeep is what. Tenant mix. All these things can be dealt with but the scope of your problem has not actually been defined. What is the actual arrearage?

  • cjmazur23rd June, 2005

    depends of the state. In CA they do an inter-spousal deed.

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