EVERY TIME I READ SOMETHING IT SAYS THAT U CAN INVEST IN PROPERTY WITH NO MONEY DOWN. SO SAY I FIND A PREFORECLODED PROPERTY AND THE OWNER OWE THE BANK AND I MAKE AN OFFER TO THE BANK AND THEY ACCEPT MY OFFER , BUT IF I DONT HAVE ANY MONEY TO MAKE THE OFFER WHERE WOULD THE MONEY COME FROM. I ONLY ASKING BECAUSE I READ A LOT OF ARTICLE THAT SAYS YOU AND INVEST WITH NO MONEY DOWN. NOT HAVING ANY MONEY IS THE THING THAT IS HOLDING ME BACK. SO IF SOME ONE CAN HELP ME OR EXPLAIN HOW ITS POSSIBLE I WOULD BE VERY THANKFUL.
I hope you read my other post about using all caps in your post. Please don’t do it.
If you don’t have any money or access to any don’t make offers to the bank, make them to the owner before the property goes to the bank.
So if I make the offer to the owner then what is my next step if I don’t have the money. IF the owner accepts my offer how would I give the owner the money if i dont have any money. Thanks for replying to my add.
Is there some reason that this needed to be a poll?
You don’t make an offer to an owner of money if you don’t have any or don’t have a way to get any. You have to make an offer that might promise money down the road or doing sweat equity or any number of creative financing options.
You need to do some studying before you try to deal with an owner. See my signature below for the first step in that process.
I agree, you need more education on how to do short sale. There are a lot of gurus out there. they teach the basics but if you want more you will have to pay a big price. In this market, this is how it’s done: you find an owner in preforeclosure, get an option to buy the property,this will give you the right to market the property, if you find a buyer you can assign your contract or buy the property with cash(cash from private funds that will not require your credit or money) and close with your buyer the same day.
That’s the idea with short sale.
What determines whther you assign your contract or buy the property with cash (private funding) and close with your end-buyer on the same day?
What is the difference between finding your own short sale deal or working a short sale deal already listed on MLS with a realtor? Pros and Cons?
Some states investors can not approach homeowners behind in payments or foreclosure. How can we get Realtors to approach these homeowners for us so that we can do the short sale deal?
*For short sales, I prefer getting a private lender for temporary transactional financing, find a buyer and do same day closing.
*You can find your own short sale deals by marketing to homeowners in preforeclosure, get an option to buy the house, market the property to an end buyer while negotiating the short sale, preferrably listing the house with a real estate agent
*If the agent has a listing for short sale, make an offer (option) to buy the property,market the property while negotiating the short sale, offer the agent additional commision if he/she finds the end buyer (thereby, making double commision in 1 deal, how can they resist!)
Thanks for your response!
Working directly with the homeowner before the property is listed with Realtor seems to be straight forward, but some states, such as Maryland, the laws advises you to work with pre-foreclosures through a Realtor.
So if one gets a Buyer’s Agent to find pre-foreclosure and short listings, then how would one submit the offer to the listing agent? Submit the offer like you would normally to the homeowner?
If the homeowner accepts the offer, then you would want to negotiate with the bank and market and list the property. Would there be two listings in the MLS for the same property? The original listing with homeowner and listing agent and your listing as the Investor to market and sell property?
How is this short sale process handled wihen it’s already listed by Realtor in the MLS? Thanks, Peter.
The best thing to do is talk to your lender about a short sale rather than going in for a foreclosure. If he agrees, you can prevent a deficiency judgment.
Another advantage with a short sale is that it can improve your credit, as it will feature as a ’settled debt’. Of course, it all depends on what your lender agrees to, so talk to him about it to establish how it will figure on your credit report and preferably get it in writing.
A short sale means the loss of your home. You can refer to online resources like StopForeclosureBlog.net for solutions to help you keep your home as well as for valuable resources like articles, videos and guides that will help you prevent foreclosure.
A majority of mortgage companies prefer not to file a deficiency judgment against you for good reason. They are aware that a foreclosure does not spare you any funds to pay the deficiency judgment and court fees and therefore, it would be futile for them to waste their time, money and efforts over this.
It is quite interesting reading some of the responses. LOL. The current guru’s peddling short sale schemes with no money are usually talking about selling options. The way it works is this: you enter into a contract with the homeowner and then start the short sale processing and negotiating with the lender. Meanwhile you sell the option contract. There is nothing illegal or unethical about this plan IF everything is done above-board and your contract has the required language to make it legal. However, two weeks ago, both Fannie Mae and Freddie Mac, owners of the majority of loans on the secondary market, have moved to establish policies to eliminate them. Even so, there is still a market for options, although the approval rate will be very low.
Since you seem to know very little about buying short sale properties, I recommend that you contact a real estate agent experience with short sales. You can do that by calling various real estate offices and asking the floor agent who in their office handles a lot of short sales.