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 arya310706
Joined: 29 Jul 2009
Posts: 48
0.09 Dollars($)
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 Posted: Wed Jul 29, 2009 11:08 am Post subject: Why investors go for a pre-foreclosure short sale? |
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| Why investors go for a pre-foreclosure short sale? |
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savior70
Joined: 25 Mar 2009
Posts: 1776
Location: Florida
237.75 Dollars($)
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| Posted: Thu Jul 30, 2009 5:06 am Post subject: |
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Hi,
| Quote: | | Why investors go for a pre-foreclosure short sale? |
Do you mean why lenders approve pre-foreclosure short sale? Well, primarily because a foreclosure, especially judicial foreclosures, involves a lot of costs for the lender. They need to hire lawyers, pay legal expenses, make repairs, if required, to sell the house to a new buyer etc. This is why, if they think they will recover more money through the short sale than through the foreclosure, they approve the short sale offer. |
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litisham
Joined: 23 Jun 2009
Posts: 116
0.02 Dollars($)
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| Posted: Thu Aug 13, 2009 7:40 am Post subject: |
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A pre-foreclosure short sale is used to get the best real estate deal. A pre-foreclosure short sale may get you 20 to 50% discount on the value of the property.
A pre-foreclosure short sale is part of the foreclosure process. A foreclosure process includes-
1) pre-foreclosure
2) auction
3) bank-owned REOs.
Every stage can be very profitable to the investor if they are acquainted with the foreclosure process.
The pre-foreclosure short sale allows for a great level of return. The discount that is possible to earn is up to 50%. However, not always lenders agree to pre-foreclosure short sale. The pre-foreclosure short sale is used when the seller is not yet in default but knows they will not be able to make payments soon enough.
The auction stage is even more lucrative than a pre-foreclosure short sale. At the foreclosure auction, investors can get properties with up to 60% discount.
The lender owned REOs are properties purchased by the lender, repaired and freed from mortgage and tax liens. REOs can usually get you no more than 15% discount. That is why the pre-foreclosure short sale and the auction are the favorite ways for investors to make high profits. |
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sunnyca2009
Joined: 04 Aug 2009
Posts: 1735
35.94 Dollars($)
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| Posted: Thu Aug 13, 2009 8:55 am Post subject: |
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| Becuase they cna get the property for cheap |
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