when and how to buy a short sale house?

Question

I think I now understand what a short sale conceptually means. I want to buy a second house at discounted price.
How do i get the process started? Where do I find a frustrated seller? Do I need to work with an agent on the short sale process?

Answer 1

drive up and down the streets of Metro Detroit..
you'll find many frustrated sellers

Answer 2

Right now you don't need to only go for a short sale instead you can get a bank repo which is a lot better.

Here is why...
With a short sale deal you can bid on it, have your offer accepted but then the bank can reject the short sale.

See, any short sales have to be approved by the bank first and some won't take the loss.

They won't tell you the answer until AFTER you bid and wait for about 30 days or longer in most instances so you risk wasting time.

The best way to find out if a property is a good buy is this way below.

Step 1. Go to the web site below and click on PROPERTY RESEARCH

Step 2. It will show you what surrounding comparables are selling for immediatly on screen. If you see that they are selling at the same price you really don't have a good deal and you are paying market. If you see they sold for more then you may have something there.

Step 3. You want to buy in a real good neighborhood and get the lowest price house you can find. The other homes in the area will bring your house value up.

Don't buy the biggest nicest house in a neighborhood or the reverse happens, the other homes bring your value down.

So the rule of thumb is, small house in an area with bigger homes brings your value up. Big house in an area with smaller homes brings your value down.

There are some great pdf documents and reports you can download free at the site below.

Answer 3

A 'short sale' merely means that the seller owes more than the property will bring on the market. I do not know why you are looking for 'short sales', but assume that you think these are somehow great deals.

This is far from the truth. Any lender who actually agrees to a short sale is NOT going to sell the property for less than actual market value, if possible.

Think about it. If a property has a market value of $300,000 and the seller owes $350,000, do you think that, in some sort of psychedelic fit, the lender is going to accept anywhere less than the $300K the property will bring ?