Real Estate Short Sales

[ASusilovic]

I've used this technique successfully for over a decade and have made millions of dollars doing it.

[...]

Why would a bank sell you a
$50,000 note for only $2,500?

Reason #1

Because they must avoid foreclosure at all costs – and here’s why. When a bank forecloses on a home it becomes a non-performing loan. This affects the amount of money a bank can borrow from the Federal Reserve.

Since banks only make money by borrowing from the Fed and lending to the public, they must borrow as much as they can. Every non-performing loan reduces the amount the bank can lend to the public, affecting their bottom line profits.

Reason #2

The bank knows if the property is foreclosed, it goes to auction and is sold for what is owed on the first mortgage and typically not a dime more. This leaves the second mortgage holder getting absolutely nothing.

Think about it – if you were in their shoes, wouldn’t you rather recoup something than nothing at all?

So for the bank it’s a no-brainer...and it creates a win-win situation for everyone involved. The bank gets some money, but more importantly they keep a non-performing loan off their books. The homeowner avoids foreclosure and saves his credit. And you are the biggest winner of all, walking away with tens of thousands of dollars in instant equity.

http://www.shortsalemagic.com/lp/ssmlp1006b.php?adid=rtbannerA

 

[The Kin2]

$30,000 a month is probably a scam, but I have seen some amazing short sales. Banks also have to pay property taxes and sky-high hazard insurance on a vacant home for every month that it holds it. This could be $500 to $1000 a month depending on the area. There is absolutly no incentive to hold these properties, and many will unload on the first bid, even if its lowballed.

 

[Rtrader2525]

i sell real estate, short sales can work but they are a pain in the fucking ass. Half the time no one doing the transaction (myself included) is versed enough to walk through the miles and miles of fucking paperwork there is.

 

[nazzdack]

Suss-----If you pay $130,000 for a house that is deemed to be worth $150,000, you don't really have any equity. You'll have to wait a long time to realize the $20,000 "imaginary equity" given what the current market conditions are that brought about the short-sale. That transaction diminishes the value of all similar homes.