Short Sales Vs. Mortgage Discounts
Reading a book on short sales that says that short sales are different than than mortgage discounts. It doesn't provide much explanation as to how they are different? Is there a difference that I should care about?
Any advice would be appreciated...
Paola
Buying a mortgage at a discount is not the same as negotiating a mortgagee approved short sale. When seeking to purchase a mortgage at a discount, you need not have any contact with the mortgagor (homeowner) since it really doesn't involve the homeowner. You aren't buying the property, just the paper that collateralizes a loan, and the promise to repay a loan.
If you are successful, you will have purchased a piece of paper.
When negotiating a mortgagee approved short sale, you are trying to purchase the property from the owner and need to have the mortgagee agree to reduce the amount that they are willing to accept to release it's securioty interest.
If you are successful, you will have purchased some real estate.