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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] OK for an occasional deal.. Posted by Ward-CA- on February 17, 2004 at 9:00 AM In Reply to: Ward and Joe's take on properly done short sales? posted by Dan-AZ on February 16, 2004 at 5:01 PM : Heya Ward, this is the Swedish guy you trained last fall. I've had a good time since the move to AZ, and my circumstances are finally allowing me to get serious about this business again. (yeah you've heard that before.. ;) ) : Well anyway, I would really love to hear the two prominent resident trainers here, namely yourself and Mr. Kaiser, give their opinions on the merits of using short sales, with the assumption that the one practicing them is able to put together the packages correctly and efficiently (big assumption, I know). : In your minds, are they worth pursuing, and can you see any pitfalls where one could get seriously burnt (beyond just losing the deal without substantial cash loss)? : Much appreciated! : - D ============================ Dan, Glad the move to AZ turned out OK. Short sales, like most real eatate transaction techniques, works best in certain circumstances. Banks are more conducive to agreeing to a short sale, where they’re going to receive less than what they are owed in a resale, when the local real estate market is static or declining and the home owner is in some financial bind, and as a consequence, has to sell their home . What a buyer in this situation hopes for is that the main lender will agree to accepting a substantial enough discount in the payoff of their loan to bring the cost of the property down to the current price level. In such a scenario, the discounting lender wants written assurance that the home owner isn’t going to receive anything out of the resale when the bank is getting less than what they’re owed. My mindset on this type of deal is yes, once in a while it might pan out for a short term oriented investor, but not consistent enough to be a rely on for regular profits. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Heya Ward, this is the Swedish guy you trained last fall. I've had a good time since the move to AZ, and my circumstances are finally allowing me to get serious about this business again. (yeah you've heard that before.. ;) ) : : Well anyway, I would really love to hear the two prominent resident trainers here, namely yourself and Mr. Kaiser, give their opinions on the merits of using short sales, with the assumption that the one practicing them is able to put together the packages correctly and efficiently (big assumption, I know). : : In your minds, are they worth pursuing, and can you see any pitfalls where one could get seriously burnt (beyond just losing the deal without substantial cash loss)? : : Much appreciated! : : - D : ============================ : Dan, : Glad the move to AZ turned out OK. : Short sales, like most real eatate transaction techniques, works best in certain circumstances. : Banks are more conducive to agreeing to a short sale, where they’re going to receive less than what they are owed in a resale, when the local real estate market is static or declining and the home owner is in some financial bind, and as a consequence, has to sell their home . : What a buyer in this situation hopes for is that the main lender will agree to accepting a substantial enough discount in the payoff of their loan to bring the cost of the property down to the current price level. : In such a scenario, the discounting lender wants written assurance that the home owner isn’t going to receive anything out of the resale when the bank is getting less than what they’re owed. : My mindset on this type of deal is yes, once in a while it might pan out for a short term oriented investor, but not consistent enough to be a rely on for regular profits. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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