In the real estate market today, finding a property where the seller is in default is not a difficult task. Default can be defined as the outstanding mortgage balance being higher than the value of the house. To profit, the investor may offer an exceptionally low price, get it accepted by the bank, and attempt to quickly sell the property an end-buyer. This technique, when successful, can yield impressive profits. Unfortunately, trying to this with short sales can be challenging for several reasons. First, the lender must approve the offer. Second, even if the investor can negotiate with the lender to accept the offer, if they have an inclination of a back to back closing the lender may not allow it.
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