How to Do Short Sales Compared to Buying Bank Notes : A short Comparison

How to do Short Sales, A hardcore Investment

This article is for those who are who have tried your hand at short sales and realized that they’re harder than they look.

Here’s a quick side-by-side comparison.

How to do Short Sales, Certain requirements

Short sales are transactions that super undetectable bank notes involve a willing borrower you have spent time convincing that they would be a likely candidate for a short sale.

And a loss mitigation specialist overwhelmed with short sale proposals who often takes forever to make contact with you documentation.

Short sales as compared to buying Bank Notes often require borrower financial statements, tax filings, bank statements, pay stubs, problem letters and HUD-1s and money.

If you’re able to close a simultaneous short sale, you may not have to fund anything. Otherwise, you have to finance the obtain the bank.

How to do Short Sales compared to Buying Bank Notes

Real estate note purchases involve another asset manager or loss mitigation specialist who has perhaps 5 to 30 investors. (they handle the documentation unlike a short sale). After you have reviewed the loan documents, you have a purchase and sale agreement, and an project of mortgage : they will be very similar for all lenders money. Short sale transactions require a lot more paper work.

In defaulted mortgages, you will need money to purchase the Bank Notes : however, there are strategies to pursue certain types of notes that truly require very little capital. More on that later.

Short Sales and buying Notes in California

City Code 1695 doesn’t connect with you (if you’re taking title as part of a deed-in-lieu negotiation, you’re exempt from the limits on money purchasers) You have multiple exit strategies (as against short sales where you need to find a buyer and get the property sold). These include refinance, loan mod, selling your bank note, foreclosing, or getting a deed-in-lieu.

Unlike short sales, there are no licensing requirements if you’re buying a bank note with a singular (as against fractional) interest.

You’re not at the mercy of potential litigation as you are in hire option deals (e. gary. your hire option is interpreted as a loan and you’re accused of money stripping) : in a bank note purchase compared to doing a short sale, you can simply modify your loan. You are, however, at the mercy of changing foreclosure laws, since you’re now the provider.

A Closing Thought on Short Sales and buying Bank Notes

I’ll leave you with this : You may have thought that short sales were a pain-in-the-butt because of the uncooperative lender you used to be fighting with. You may find yourself on the reverse side of the table if you buy a bank note, and have an investor come to you with an offer requesting if you’ll take a discount on your defaulted mortgage in order to sell the property.

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