I recall reading a few articles that say if you’re buying pre foreclosures, the seller can sell their home to you for less then they owe, how is that possible? I dont think thats even possible, isnt the lender getting ripped off then?
If you get a pre foreclosure to agree to sell you their home, how do you deal with the outstanding mortgage?
From the investing glossary to your left:
Short Sale - A sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes
Anything is possible with just a little bit of research.
Raj
Sorry for the easy questions. It’s just theres a ton of resources with many on this website and it gets very difficult trying to sift through it all; ecspecially being somewhat ADD. Actually doing things would be good for me 
The bank may still be making a profit in many cases ( I assume) Much of what the seller has paid may be interest and not really brought the principal down much.
Again I assume.
No offense intended (and hope none taken). The point behind the response is that the RE business is all about researching the deal so that you know what you are getting when you buy. There is no easy way around this. If you use other people’s insight when you buy, then I hope that you’re using other people’s money and /or credit as well, because you can expect to see it go away quickly.
Raj
Sometimes people need things explained by another person to fully understand. I have read sooooooo many REI books but for some reason it only sinks in when someone explains it to me. Many times I ask questions I already know the answer to just to have a person give me a better explanation.
I did better than most people in my community college math classes and never opened my book, took notes, or did homework. I would just watch the teacher do it on the board and explain it and I understood and I really don’t condsider myself smart. I just learn better that way. I am not really sure what my point is so I will stop typing now.