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The Time Is Right For Doing Short Sales
by Derek Carter
Real estate investors looking for a niche in the vast areas of real estate investing might want to learn the short sale process. Recent reports show that short sales have risen from 18% of total sales last year to nearly 50% of total sales this year. The huge jump in short sales is mostly due to the all the foreclosures but never the less what it really means is a huge opportunity to profit for investors willing to learn the short sale process.
A short takes place when a lender agrees to sell a property for less than the balance of a mortgage to a third party borrower at a mutually agreed price. The amount of short sales being performed by lenders is increasing because the value of properties that ends up going into foreclosure decrease by an average of 30%. Banks are also unable to re-loan money out because it is tied up in pending foreclosure hearings. These are the 2 major reasons that banks are allowing more short sales.
Homeowners also benefit from these short sale deals. A foreclosure on your record could effect your credit for up to 10 years and cause even simple transactions to be much more difficult. Short sales on the other hand are substantially less damaging to your credit and can make it possible for you to rebuild your credit much quicker and in some cases purchase another home in as little as a year.
With lenders willing to except minimal losses and homeowners finding a much more viable option to foreclosure, short sales could be the key to huge profits for investors. Short sales take on average 3 to 8 months to perform. Plus when you do a short sale your competition is not existent for that house once you lock the owners into a purchase contract.
You are also helping people by relieving a big stresser in their life by buying their home. We have had so many people just bless us for buying the property and taking it off their hands. What a great feeling helping people that really need it.
I have been investing for 11 years and want to help people learn how to create extra income and residual income using real estate. We also show people how to buy homes at huge discounts this is especially good for 1st time homebuyers.