“Short sales and foreclosures are the two best financial options for real estate investors. You can start with minimal investment money and get more profit within short duration of time. “ says DC Fawcett reviews.
A brief introduction to term “short sale”
Selling a home for less money than the mortgage balance is known as short sale. If a person has a mortgage for his home for about $100000 but selling a home for $75,000, then he has $25,000 balance mortgage amount remaining. Selling the home for such a price is called short sales.
A brief introduction to term “Foreclosure”
Failing to repay the mortgage amount to the lender may lead to foreclosure. At such instance the lender will seize the property since it has been used as collateral.
Secret to short sale and foreclosure investing
The short sale process begins with the lender who holds the mortgage. Once he decides for the short sale, the documentation process begins and they must sign off to execute the short sale. In most cases the lender will be a bank and it has lot of procedures since the process needs money. Sometimes the bank may also lose some money in the process.
Lets say the bank approves the short sale, the potential buyer might consider to ask for low price and negotiate with the sellers. Once the transaction is confirmed, then he approaches the bank for the purchase approval. Without the approval from lender i.e. bank you cannot buy the short sale property.
DC Fawcett reviews the pitfalls of short sale investing
The major drawback of short sale investing is it might take from months to even a year to complete one transaction. It is such a long process and lot of paper work is involved.
Instead of bearing a total loss of money, the lender might feel to get at least the major portion of the property. Hence short sale is a better option in many cases than a foreclosure.
DC Fawcett complaints on traditional short sale investing, that has restrictions to sell the house immediately after purchasing it. Therefore if you are buying a short sale property then be aware of the fact that you have to hold on the property for sometime before selling it.
How to buy a foreclosure homes easily?
It may be a tedious process to find the foreclosure home, hence hiring a real estate agent who specializes in foreclosure property sales would be a better option. He can easily find a home which suits you and get an approval from a lender.
Many websites contains a large database of foreclosure homes and you can easily find such websites online. Multiple listing websites may consist of combined data of homes for sale; you can easily filter foreclosure homes from those data and get the required information. Search for REO (Real Estate Owned) homes which denotes that the home has been through the foreclosure and concerned lender i.e. bank is ready to sell it.
DC Fawcett complaints on the drawbacks of hiring a separate realtor for buying a foreclosure properties, you can find a bank’s agent for selling such homes. The bank will have some realtors who work significantly for selling foreclosure properties. Find such agents and work directly with them instead of hiring a real estate agent, so that you can save some dollars spent on a realtor.