what is a short sale in real estate and can you really make money off it?

Answer 1

Basically it's asking the lender to accept less than what's owed. So if a piece of property is worth 100k and has a loan on it for 105k and the lender is willing to take 80k, you now have a 20k profit if you sell the place.

Here's a good book:
Make Money in Short-Sale Foreclosures : How to Bypass Owners and Buy Directly from Lenders by Chantal Howell Carey

Also, in the above link in the previous answer, Carl paid way too much for the property, since chances are, the bank recouped its losses from an insurance company. The rule of thumb is 20% on the first and 7-10% on the second and/or other liens.

Regards

Answer 2

First: Contact the lender. Explore a loan restructuring or forebearance. Second: Clearly, your first house is overpriced if it is been in the marketplace for a yr. Interview (through mobilephone, if indispensable) three-five truly property dealers within the discipline of your first house. Get their opinions, and a CMA (aggressive marketplace evaluation) of the estate. Find out which of them have revel in with brief income. Third: I'm no longer certain what a truly property legal professional could do. Feel unfastened to touch one, however I've in no way encountered one that handles brief income. Fourth: Do a whole monetary evaluation. You elevate the likelihood of promoting the moment house. That would make feel. Good good fortune.

Answer 3

Here's a link to a good explanation. It's really too complicated to explain in detail here.

http://www.mortgagenewsdaily.com/752005_Real_Estate_Short_Sale.asp

Once you read the article, you'll probably see how the buyer might be able to to turn a profit.