Short Sale Home – When’s The Best Time To Buy?
As with most things in life timing is everything, and it is no different when looking to purchase a short sale home. If you want to make money in this profitable area of foreclosure purchase you want to buy a short sale home at the most opportune time. A short sale occurs when the lender agrees to sell the home for less than what is still owed on it by the homeowners.
When a homeowner gets more than three payments behind on their loan repayments, the lender will start foreclosure proceedings. They will issue them with a Notice of Default which will set the foreclosure process in motion.
The worst case scenario is that the home will be sold at auction or as an REO if it doesn’t sell at auction – this will leave the owners with a foreclosure ruling against them, thus blemishing their credit record.
The homeowners obviously would prefer that it doesn’t get to that stage, and may be grateful for someone to step in before it goes to public auction, so the best time to approach the owners and their lender with an offer to buy the short sale home is just after the notice of default is issued to them.
You can get the details of homes that have foreclosure notices filed against them from the public records of the county courthouse, in newspapers and in foreclosure listing sites like foreclosure.com.
The lenders are also motivated to sell at this stage, as it costs them time and money to take a home through the foreclosure process.
Negotiating a short sale home can be a complex undertaking. Contacting and dealing with the homeowners and the lender, knowing what forms to fill in, what research needs to be done, knowing exactly what you need to say for the transaction to go smoothly and in your favor – your success or failure will be dependent on your knowledge in these areas.
There is a home study program available that addresses all these concerns. It includes a kit with all the forms you need plus audios that tell you exactly what to do and say when buying a short sale home. By following this program you will avoid the common mistakes that plague newbie short sale buyers. To check it out click here: www.foreclosuresrealestate.org/go/foreclosures.
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