What is a Short Sale?If you've been wondering, "What is a short sale?" A short sale (house sale, not stock) takes place when a piece of property is sold at an amount lower than the debt previously encumbering the property. So for example, if you owed a hundred thousand dollars ($100,000) on your mortgage after falling behind by 6 months, and I came in and made you an eighty thousand dollar ($80,000) contract offer, we would have a short sale...if your bank agreed to it. A short sale house that had an outstanding mortgage balance of about two hundred thirty five thousand dollars ($235,000) when I made my first offer, eventually was sold to me for about one hundred twenty five thousand dollars ($125,000). Becoming a great short sale negotiator will open up whole new avenues to make money real estate investing and flipping. I used to have a detailed 1-hour Video tutorial on here but found that few beginners are willing to sit through a detailed 1-hour tutorial, so I've removed it and will release it eventually in another form. In any case, I've decided to include some shorter videos here:
This pretty entertaining video gives you an idea of the kinds of numbers and scenarios we see in short sale deals, and some of the ironic (silly) paradoxes you run across in dealing with the lenders.
This guy does a decent and concise job of explaining some of the most common reasons why short sales go ka-bloeey!!.
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