Is there a way to help sellers with little or no equity?

I was wondering if there is a way to help sellers with little or no equity buildup.
I don’t have a particular property in mind, but it seems there are many of these homes out there and it might be a good market to tap into. I was thinking of Sub2. and then sell a L/O. Any ideas?


Sounds like you have already been reading up. Sub2 is the way deals are made when there is little or no equity in the property.

Short sales can be done on properties that are in pre-foreclosure and the lender doesn’t have insurance to fall back on to get paid.

I am still learning myself.

It would all depend on your goals and your current financial situation meaning your ability to pay back a lender if needed.

1- Short Sale

2- Sub-2

3- L/O

and so on there are so many diferant ways to aproach such deal but once again it all goes back to your needs, want’s and ability to pay back a lender.

Hi Guys,

Can someone please explain what a short sale is and how it works. I kinda understand how a short sale works in the stock market. You are basically betting that a stock is going to go down in value and if it does you make some money. How do you short a property, do you sell it before you buy it :-?



I know there is alot of skill and style invoved in short sales, but essentially you are convincing the mortgage lender that the current home owner will not be able to make payments on the house and may lead to forclosure. Rather than let that happen you offer the lender a discounted offer to pay the house off.

This sometimes in the end will cost less to the lender rather than going through the hassle of foreclosing and attorneys etc.

I tried this once but did not know as much as I do now and I believe the house was worth 105k and the las payoff 2 years ago was 85k I offered 70k due to some foundation work of about 8k-10k. Problem was that the loan prolly had some sort of PMI or HUD backing and they weren’t gonna sell for anything less than the payoff since they would get their money at foreclosure.

Buying with little equity is akin to the greater fool theory. Yes there is someone out there that will pay you something down and more per month than it cost you. You just have to find them before you make any commitment to make any payment.

Why do you want to help sellers so much. How about finding a motivated seller that is willing to help you make money by putting the right deal together.

Short sales happen when the lender will lose less money that by going through the foreclose/REO scenario. Most of the time that is a conventional loan.