How to benefit from a short sale foreclosure?
Answer:A short sale foreclosure is a great investment opportunity for experienced investors. Actually, buying properties at pre-foreclosure allows for the best short sale deals.
Investors offering to buy homes before they are foreclosed on are making a great investment and doing homeowners a lot of good. Many delinquent borrowers have little or no equity and very little time to arrange the sale of their house. An investor who offers them to buy the property on a short sale foreclosure helps them avoid foreclosure on the credit report and become debt-free. The lender holding the first mortgage will usually agree to a short sale foreclosure, as they don't want a property but their money back. Even if they accept a lower price, often it is the best possible deal and everybody is happy.
Even if the bank accepts an offer as low as 50-70% of the original mortgage value, they are still happy - with a home encumbered with liens, repairs needed and a lender who does not want the property, the first lender often would gladly accept a short sale pay off.
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