| The real estate market crashed leaving many | | | | bank must keep seven dollars for every dollar in bad |
| homeowners upside down in their homes. Many were | | | | assets which they can not lend. |
| unable to continue to meet their financial obligations | | | | So if they take back a $100,000 home, the bank |
| and started defaulting on their loans. | | | | cannot lend $700,000. Since they make money by |
| Investors ran to the wave of opportunities within the | | | | lending, taking property back through a foreclosure |
| foreclosure market. Many, however, became | | | | hurts them more than discounting the loan amount. |
| discouraged because they found plenty of homes | | | | This strategy is a way for a buyer to get into a |
| with no equity in them. | | | | property by getting the bank to discount the loan to |
| That was until they learned about short sales. | | | | an amount that leaves the buyer with a strong |
| In these situations, the home owner owes more to | | | | equity position if negotiated right. |
| the bank than what the home is worth. This creates | | | | If you are looking to get into short sale investing |
| a problem in that no buyer will pay over market | | | | what you need to know is... |
| value and unless the bank discounts the amount | | | | How to prepare and put together a short sale |
| owed, the home can not sell. | | | | package. |
| The bank is usually motivated to negotiate a short | | | | Where to find home sellers who qualify to sell their |
| sale because the home owner is often already in | | | | homes using this method. |
| default,and the home will be going to foreclosure | | | | How to negotiate with the banks so your file doesn't |
| unless they discount the loan amount owed. | | | | end up at the bottom of the pile. |
| If they fail to negotiate the short sale, then the bank | | | | When you are able to negotiate a short sale you will |
| will have to take the property back. When this | | | | be able to invest in real estate even if the market |
| happensthe home becomes a bad asset and the | | | | iscoming down. |