Buying short sales is definitely an extremely profitable way to purchase a single property or invest in multiple properties. A brief sale is a real estate transaction where the seller has stopped making payments on the mortgage and has little, or no equity left in the house. The bank trying desperately never to need to foreclose (costing them thousands in legal fee's and time) allows many times for the seller to market the property for less then the amount owed and forgive the difference.

In the bank's mind either way they have a major problem if the borrower cannot make the payments: either they spend legal fees, time, and take the chance that the property will be in sub-par condition due to the fact that most times folks are foreclosed upon the homes aren't properly maintained. Then they need to get the property back in shape hire and pay a real estate agent to sell the property for the most they are able to enter a REO situation. OR the lender can allow the current seller to sell for just as much as the market will allow and just pay all costs associated with the sale (that they would have to pay anyway) and get a check for what the house netted following the sale, a much faster and many times much more profitable situation for the lender and better situation for the seller looking at the chance of being foreclosed upon.

To find short sales your best bet is to hire the services of an agent that focuses on them or at least includes a excellent grasp of how they work. quần short that is very experienced inside them would be the optimum resource to find, negotiate, and assist you in the purchase of the property. Banks by their nature have become difficult to cope with and take an extremely long time to make decisions in what price they will let their homes sell for. The loss mitigation department of the bank that's servicing the loan will be the department handling each of the banks deals in relation to short sales, and that department of the lender is in charge of getting the best terms for the lender and getting as much out of your assets they are in charge of. Many times losing mitigators can make bonuses for maximizing the amount they get for the properties that they are currently taking offers on. A sharp real estate agent will be your very best asset in defending why, and what terms you as a buyer encourage from the lender handling the sale.

The short sale process is very detailed and every bank does things differently so this should be looked at as a guide but for probably the most part this is the basic routine that occurs when buying a short sale. First an offer is submitted to owner (which is still in charge of the property) and they have to sign off on the offer first. As a buyer you will need a iron tight loan approval or often the bank will not even look at the offer for fear that you as a buyer are not even qualified. Once you submit the offer, seller signs off onto it your offer with loan approval will be submitted to the bank. It will take typically 3-6 weeks for the bank to react to the offer. What they do throughout that time is order an appraisal of the property to determine what the fair market value of the property is in it's present state, and marketplace. They then put your offer in line that a loss mitigators desk these mitigators handle all the offers and review them for the lender and since they handle sales for all over the country they're typically very supported and take a very long time to respond. Once they do respond they will probably counter the offer submitted because they want to get the buyer to offer the most money for the bank as possible. Here's in which a experienced and competent real estate agent will help you to deal with the bank and negotiate terms in your favor not the bank's.

When all of the terms have been agreed to and the offer now becomes a contract escrow timelines start. (escrow is opened at the time of the initial offer that is accepted by seller but hasn't yet been submitted to bank.) Most buyer's will request a home and termite inspection and they are conducted just as a normal deal is, the hang-up often is that any issues (and you will see issues) that are found with the home will never be able to be fixed in most circumstances since the seller has no money to accomplish repairs. Buyer's who buy short sales should place offers low enough that whenever small issues are located during inspections they're OK with proceeding to close, if large major issues can be found in the home it is most likely best to get back to the bank and ask for repairs or just cancel your contract and discover another property. After inspections are complete the short sale follows exactly the same closing activities as a normal sale does.