Are short sales really that bad?

Foreclosures, Short Sales, Tax Foreclosures
1

I’ve been REI’ing since December '05. I’ll admit that my strategies are not the best but I will say that I’m getting decent amount of calls. Most of them from Homeowners who have no equity and that their houses is at most 3 years old or younger. I read on the internet that short sales are not worth pursuing and that they are a waste of time. To me, I look at it as an opportunity but certainly harder and more time consuming than doing a flip. I read somewhere (poster could be exagerrating) but he said that he knew some guy that has 40 short sales pending and he will be lucky if 1 or 2 go through.

I would like to know your opinion on short sales, do you like them, will you continue to do them even though they may not go though? What are some good benefits of having a short sale or do you just straight out hate them?

2

I have never tried one but from reading - they are confusing at times and full of rejections. They say to be persistent with offers, know who to speak with, and get your paperwork right the first time. You really have to show that doing a short sale is more advantageous than the bank foreclosing and/or them taking the house back. There’s a lot of formulas they use to see if they are feasible. Plus, its not just the bank involved in the decision making to accept a deal. There’s a lot of work involved in doing short sales. Its not at the top of my list yet. I may give one a try if it presents itself.

I’d like to hear the advantages of short sales posted.