With foreclosures on the rise, & loan modifications not working, Short Sale transactions are the BEST way to get us out of this Real Estate down turn.
LOOK what happens when Banks don't accept short sale offers:
This weekend I attended a public auction held by REDC www.ushomeauction.com over 900 REO's (REO= Short Sale gone bad, in most cases) being auctioned off to some 500+ people. Most properties were being sold for too much, a lot of emotional buyers thinking that just because it is a foreclosure AUCTION "They must be good deals" WOW!
There was a home being auctioned off that we made a short sale offer on (5207 W. Orchid Ln. Glendale, AZ 85302) to the bank in March 2008 for $145k net payoff it has been listed on the market since May 2008 without being sold and the opening bid was $29k at the auction on Saturday January 24th 2009 CRAZY!
So the moral of this story is some short sales work some short sales don't, you can't win them all because banks are.... well, STUPID. However it is very important you learn the in's and out's on how to get short sale offers approved. Start by filtering through your leads and only working the short sales that have the best odds of closing.
My top 5 things to look for in short sale transactions:
1. Look for properties that have only one lender
2. Make sure there are lots of comparable sales, both normal sales & other short sales & REO's
3. Location, Location, Location: work short sales in "Core" areas avoid outlying subdivisions
4. Avoid Condo's
5. Avoid tenant occupied properties
Be sure to attend one of our upcoming Short Sale Success Workshops to learn more
Hear what past attendee's are saying about their workshop experiences