Short Sale Deal

Foreclosures, Short Sales, Tax Foreclosures
1

Hey guys, experienced investors I have a question. I have a few possible short sale deals on the table and wanted to know what were some of the points you look for in a short sale opportunity to know if its a good deal? A certain percentage off compared to market value? History of the home? Thanks in advace

2

I don’t care of a house is a short sale, REO, etc, its value to me is the same, I want to purchase the house and rehab it for 70% (or less) of ARV,I want it to be in an area with few rentals so that it will hold its value, and want an area I feel like is well established and won’t be going down in value.

I’ve heard people say that you can’t get a good enough discount on short sales, but the best deal I’ve bought so far this year was a short sale,it took about 3 months, but it was a great deal

andy

3

First of all is location, especially if you are planning on flipping the short sale. You want something that will sell quickly once the short sale is approved, since time is of the essence.
Then is the price you can get the property for: you need enough spread to make a profit, so you need to work on justifying the offer to the bank and “convince” the BPO agent that it is not as nice as the other properties in the area :biggrin
It would be better for you to build a buyers’ list and then go looking for short sales in the area where your buyers are.

4

As others have eluded, the fact that it’s a short sale is not the main consequence…the question is what are you gonna do with the house after the short sale is approved? The key point to keep in mind is all short sales are essentially “delayed” all-cash deals.

Are you planning to rehab/wholesale it? Well it’ll need to be in some stage of disrepair (or have something else bad going on) or else you won’t be able to get it cheap enough after all that negotiating effort.

Are you gonna buy and hold as a rental? OK well you need cash lined up to pay off the lender once it’s approved. Even here you’ll need to justify a low price to the lender somehow.

If neither of these apply you’re probably better off referring it to a short sale Realtor.

5

Make sure there are high and low comps. Also, be sure that homes are moving in the area. Why discount a property if you can’t move it?
Also, make sure it’s not a sink hole home.
So, here’s my criteria

  1. High and how comps
  2. from a CMA, make sure sold homes had less than 100 days on market
  3. no Condos.
6

In short sale, you need to extend your persistence and patience. Because the overwhelming number of short sales today may lead to banks running out of resources.

7

Short selling is a option for some home owners use when the bank, credit or other type of mortgage lenders they have borrow from provides them with option of selling their home to third party…

8

Some do short sale as alternative to foreclosure but it has a negative impact in credit score.

9

I agree with Carla as it somewhere disrupts the whole credit score and thus, creates a problem in managing our debts. It is always needed to consult with an agent who will help us in providing a best deal.

10

after all i believe that short sale does not offer a solution to a bank so banks do not need to hurry that much at all; despite the so called “horror stories” short sales are still being pursued???

11

If it is a short sale, I ask for what should I expect. If it is not, I also asked what should I expect. Next is the information or details about it.