How are people making money off of short sales? Can someone explain how this works?

Question

I see all these infomercials for programs like the "millionaire mindest collection" and I have not been able to figure out how they expect you to make a check off of someone else's near foreclosure. If you know what you're talking about, please explain the steps, thanks!

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

The same authors wrote a book called "quick cash in foreclosures".

Regards