Short Sales,forclorsure Investing Questions?
Can anyone lead me to some good reliable free information about investing in forclosure homes. I am confused about the short sale techniques. Do these deals mean that the lender signs the property over to the invester so they can turn it back around to the owner. The idea of helping someone out and making money at the same time sounds good. I have also heard this can be done with no credit check or money down or at the least $10. Can someone explain this process please. I know sometimes the owner does not want the house so the house would be sold to a rehab invester. I want to be the middle person who finds the deal, makes money and gives the property back to owner or sell to another invester. I am obviously new at this. I know someone who is about to go into forclosure and I would like to help them. Thank you
sunnytime
[ Edited by sunnytime on Date 01/08/2008 ]
I would advise reading up in the short sale forum here.
One point- lenders will not allow the current owner to benefit from a short sale. They are selling the property for less money than the current owner owes. If the current owner were allowed to retain the property, every borrower would be trying to short their property and owe less than they do currently. You will have to state that you are an unrelated party.
As far as no credit check or money down- I find lenders in this situation are especially concerned that the buyer be qualified, as they do not want to put off the foreclosure process and then have the deal fall through. This means you must be pre-approved, not pre-qualified. You will have to have financing set up in advance, and geting it will be no different than arranging financing for any other purchase.
Chris