Real Estate | How To Buy Foreclosures and Short Sales

The current state of the economy often gets people frustrated. Most people look at it as a major problem and fail to look at it as an opportunity. The opportunity to take advantage of the massive discount that is available on most real estate deals. One really does not need a lot of money to start with. You can have a joint venture with a reputed investor and earn substantial profits. All you need to do is find out a great deal that the investor will like and once the contract is through you can expect to get paid at closing.

The current market and business trends are changing. Jobs are getting fewer and fewer and the recession is shifting the wealth and making the middle class is fading away. To be successful one need to be his or her own boss. There is no other option is you are looking for financial independence. Buying foreclosures with short sales is the best option to get you there.

It is important to understand the difference between short sale and foreclosure and how they offer a chance for real estate ownership. Buying a fore closure or short sale can be a complex procedure. These are classified as non-traditional home sales and take a longer time than the traditional real estate deals.

A short sale is when a seller is asking the lender to agree to accept an amount less than what is owned on the house as the full payment. It is when the sale price is not enough to pay off the total mortgage and the cost of the sale. A short sale can be the most time consuming real estate transactions. This is because the seller and the lender both must agree to the terms of modifications of the seller’s mortgage commitments. In a short sale the seller negotiates or intends to negotiate with the lender to pay off the mortgage for less than what is owed on the house.

Foreclosures on the other hand represent properties owners of which have missed one or more mortgage payments. Such owners receive an official notice of foreclosure from the lender. Owners who have been served with such notices often turn to the Home Affordable Modification Program (HAMP) offered by the federal government. It gives the lender incentives to offer the distressed borrower an opportunity for short sale in order to avoid foreclosure.

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