| How to do Short Sales vs Buying Bank Notes - a Short Comparison |
| Articles - Mortgage |
|
How to do Short Sales, Not so Easy!
How to do Short Sales, Not so Easy! Here is an article is about Short Sales and the difficulties that you have experienced when trying to close them. A comparison of the two... How to do Short Sales...What is Required? A Short Sale transaction involves a lot of time convincing to a borrower. You also have a loss mitigation officer who is probably neck deep with short sale proposals who cannot get back to you with documentation needed in a timely manner. Compared to buying bank notes, short sales require bank statements, tax information, proof of income, letters explaining hardship, closing statements, and cash. In some cases if you can arrange for a simultaneous close on your short sale. If you cannot, you might be required to finance the purchase transaction. How to do Short Sales Compared to Buying Bank Notes Purchasing real estate notes involves 1 other person that are works with about 5-30 investors. They are the secondary asset manager or a loss mitigation officer. They take care of the documentation, you only need to review it. You only need to worry about the purchase and sale agreement and the assignment of mortgage, this process is very similar with all lenders. In defaulted mortgages, you will need money to purchase the bank notes - however, there are strategies to pursue certain types of notes that actually require very little capital. More on that later. Short Sales and Buying Notes in California First of all, Civil Code 1695 won't apply to you (when taking title in a deed in lieu negotiation, you are exempt from the constraints that equity purchasers have). As opposed to having to find a buyer and selling the property, there are multiple exits for you. They include loan mods, deed in lieu, refinances, and selling the note. There are no licensing requirements when you are buying bank notes with a singular interest. You're not subject to potential litigation as you are in lease option deals (e.g. your lease option is interpreted as a loan and you're accused of equity stripping) - in a real estate note purchases, you can simply modify your loan. You are, however, subject to changing foreclosure laws, since you're now the lender. My Last Thought on Short Sales and Buying Bank Notes I'll leave you with this - whereas you may have thought short sales were a pain-in-the-butt because of the uncooperative lender you were negotiating with. You may find yourself on the other side of the table if you buy a bank note, and have an investor come to you with an offer asking you if you'll take a discount on your defaulted mortgage in order to sell the property. Hows that for a change of pace? DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Interested in learning more about the Note Buying Business? Watch Hours of FREE Training Videos here: Buying Non Performing Notes Real-life, Up-to-Date Information for You. Visit NoteBuyingProfits.com or Call 718-783-7605 Or Click Here: Buying Bad Paper From Dean Engle & NoteBuyingProfits.com - This time on How to do Short Sales |