| Short sales and REO home (Real Estate Owned) | | | | sales are increasing. Choosing the short sale option |
| deals can be constructed by investors who have an | | | | remains a better path for home owners who are in a |
| understanding of how to create a positive outcome | | | | dire financial situation as a result of work layoffs and |
| for home owners facing financial difficulty. A short sale | | | | other problems. Alongside of this the number of home |
| is an option that a homeowner can choose to take up | | | | owners facing foreclosure and the amount of |
| to avoid a bank foreclosure. This differs from an REO | | | | foreclosed homes available is on the rise. Once the |
| home situation, where the property has already been | | | | bank has foreclosed and has a REO home that it |
| foreclosed by the bank. The major advantage for a | | | | needs to handle, they will aim to sell the property |
| home owner who opts for a short sale is that this | | | | quickly, usually at a discounted price, in order to regain |
| agreement will result less impact on the credit rating of | | | | any losses from the foreclosure process. If you want |
| the distressed home owner. When an investor | | | | to master making money in spite of the poor |
| understands flipping short sales and how to put | | | | economic climate, then knowing how to structure real |
| together property deals on REO properties, they are in | | | | estate deals that focus on flipping short sales and |
| a good position to structure a profitable deal. | | | | on-selling REO homes provides a solid solution for |
| At present the IRS will provide tax breaks when home | | | | wealth creation. |
| owners enter into a short sale agreement on their | | | | Generally, a home owner who is in financial difficulty will |
| primary residence. This tax relief will continue until 2012 | | | | aim to secure a short sale of their home, as this is still |
| and the owner will receive debt forgiveness through | | | | better than foreclosure. By investing wisely and |
| tax exclusions up to $2 million ($1 million if each married | | | | structuring a solid deal, you can take this situation and |
| partner files separately.) This benefit is only possible for | | | | create a better solution for the current home owner |
| those who have agreed to a short sale. Once the | | | | by pairing them with a buyer eager to purchase their |
| bank forecloses and the property becomes an REO | | | | home. This is good news for the investor, plus it is a |
| home, then this option is no longer available. Investors | | | | better answer for the home owner than going through |
| who know about flipping short sales can create real | | | | a foreclosure and ending up worse off when the bank |
| estate deals that will benefit the home owner, providing | | | | takes their home and sells it as a REO home. By |
| them with an opportunity in light of a very difficult | | | | gaining the knowledge needed to put together deals |
| decision. | | | | and create profit flipping short sales and selling REO |
| In the present economic climate, the opportunities for | | | | homes, you not only aid others, you'll also improve your |
| finding properties that are suitable for flipping short | | | | and your family's financial standing. |