Short sale to avoid foreclosure

You can buy a house before entering the foreclosure if you can arrange a short sale. Short selling is a way to reduce the loan against property, make it more commercial. Short selling is when the owner sells the home for you at a price below what he owes to the bank or other lender. This means a loss to the owner, but there are many reasons why an owner may choose a short sale.

Obviously, the house can provide much in the open market, but the market has slowed considerably recently and households can take up to six or seven months to sell. Stores in pre-foreclosure, therefore, usually very motivated. They want the freedom to bank and mortgage payments and rebuild their lives. It is very clearly in the interest of the owner of a sale before the bank actually closed to prevent the destruction of your credit rating and are part of the capital loss that has accrued.

There are a number of advantages for you as an agent or investor lists obtained or buy before the foreclosure. First, the price of these goods is much lower than market prices. The owner is obviously in a hurry to sell the house before the bank can seize. Are more likely to really listen to offers they receive. You can find homes before foreclosure up to 50% below market value. You also have the advantage of dealing directly with the owner. The buyer has complete control in an agreement of selling. In addition, no carrying costs. Until his turn to sell, nobody is actually making the payments.