When does a short sale work?
- The home should have a large second mortgage
- Equity that will give you a good return
- A property that needs repairs and would need to fixed or sold for a large discount.
- Other liens on the property.
Examples of lien holders:
- Contractors
- Child Support
- IRS
- State Tax lien
- Title Companies
- Private Mortgages
- Judgments
What to look for and avoid
I always prefer 3/2 or larger ( 1 and 2 bedrooms are harder to sell ) Mobile homes that do not sit on there on land are not a good deal( I personally do not like mobile homes for the simple fact that they are hard to finance and the people buying them typically have a harder time getting financed.
Highest end home and the lowest end home. You do not want to work hard for little profit.
Where can you find deals ?
Go to the County Government (all of this is provided in our site) where you can learn what has been recorded within 24 hours. (truly current information) look for Notice of Defaults (NOD) in a non Judicial State or a Lis Pendis ( LP) in a Judicial State. Learn the Foreclosure Laws in your state.You need to know what you are looking for and you will need to spend some time at the Recorder's Website if they do not have a website I have provided phone numbers so you can contact them You will use the Tax assesor's site to learn property description, history of the prior sales, tax information and market value
You will need to make yourself familiar with these websites because you can do most of this from your computer. You will need to go to the courthouse at some point mainly to find out the amounts of the liens. I would also order preliminary title search ( about 45.00) to make sure you know of anything that might make it a bad deal.
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