Define: Short Sale
Hello, everyone. Pardon my ignorance but I am kind of confused. Can anyone tell me exactly what a Short Sale is and how it can be financed? And if it is not too much, Can a short sale be flipped?
ONce again, pardon my ignorance but I have searched and searched and have not found a specific answer. Thanks in advance.
Eddie
a short sale is really a form of preforeclosure sale and occurs when the mortgagee agrees to accept less than the loan amount to avoid foreclosure.
A negotiated short sale results in a discounted purchase price for the Buyer.... the buyer would finance the acquisition much the same as in any conventional realty acquisition... but without the luxury of time.
Can you flip a property you have acquired via preforeclosure short sale? Sure.
Thanks SSPro.
Why do you say you do not have the luxury of time? [ Edited by EddiePicasso on Date 12/29/2004 ]
Thanks SSPro.
Why do you say you do not have the luxury of time?
most lenders after accepting a short payoff will require that you close within 30 days. meaning that you dont have a heck of alot of time to go get conventional financing to fund it with. most investors use hard money to fund it or the buyers money and double close.
I am compleating a SS today and tomorrow. The 1st lien mortgage was at about $117,000
Then there were several other misc. liens:
$49,000
$4,500
Back taxes:
$1,500
Etc.
The total of all the encumbrances was $202,000
All that on a house that was beat to heck and nearly destroyed that if it was in good condition would be worth $90,000
We have been negotiating the short sale for a couple months and we are buying it for $70,000. Originally I was going to buy it and assign it to a builder who would doze it. Now I am getting $3500 for helping them buy it, and I don't need to fund it or use my name. good enough for me. They are closing tomorrow, and if we have a good wind the seller will sign today. Here's hoping.
Josh
Pardon MY ignorance, but why would a lender accept a short sale? What's in it for them?
And, most importantly, how would one go about initiating/negotiating such a deal?
Hi Everyone, Sorry if this question might sound ignorance but I am learning alot. My question is what are the other misc. liens besides the mortgage and taxes? Also, How were you able to pay only 70,000 what happens with the misc liens that needed to be payed for?
alot of your questions can be answered simply by reading the posts and the articles here. You will find this sight a great resource library. But like with any library you need to look around a little