| A short sale is a form of pre-foreclosure sale where | | | | buy the home. That's where you need to emphasize |
| the lender agrees to accept less than the loan amount | | | | the benefits of the deal to them. |
| to avoid foreclosure. Such a short sale results in a | | | | For the home owner, selling to you during the |
| discounted purchase price for you as the purchaser, | | | | pre-foreclosure stage of foreclosure proceedings |
| and can benefit home owners and lenders too. | | | | allows them to save their credit history from being |
| One of the key differences between this and other | | | | marred by having their home foreclosed. While the |
| kinds of property purchases is that you are under a | | | | short sale will be noted on their credit file, this outcome |
| time constraint - you must negotiate the sale before a | | | | is still much better than having their home foreclosed, |
| specified date or the home will go into foreclosure. | | | | their credit history ruined, and the possibility of enduring |
| Foreclosure proceedings typically follow a tight | | | | bankruptcy. |
| time-frame, so you need to identify a suitable property, | | | | Meanwhile, if the home owner doesn't have much |
| get in touch with the home owners, inspect the | | | | equity in the home, the lender may also favor a short |
| property, and make an offer that's acceptable to both | | | | sale. Basically, the less able the lender is to foreclose |
| the owners and the lender all within this period of time! | | | | the property and sell it for close to its retail value, the |
| The most obvious benefit to you as the purchaser of | | | | more likely it will agree to a short sale. Plus, lenders |
| a pre-foreclosure property is to get the property for | | | | often want to avoid the hassle of going through |
| much less than its true market value. If you are | | | | foreclosure proceedings. |
| confident that you can get the property at a | | | | If you are able to reach agreement with both the |
| substantial discount, you can virtually lock in a low risk | | | | home owner and lender, you'll have the chance to |
| profit. | | | | derive a substantial profit from the property you buy |
| Even so, to secure a short sale, you must convince | | | | via a negotiated short sale. So be sure to include this in |
| both the home owner and the lender to allow you to | | | | your arsenal of exit strategies! |