Many new investors thrilled by the novel idea of making money by buying and selling real estate, are persuaded by short sales or sometimes called “foreclosures”. Short sales are the real estate equivalent of repossession auctions.

Occasionally, homeowners are forced to sell their property for less than the mortgage they own on it. This is what a short sale is.

The main consequence of a short sale, for the property owner in particular, is that the bank sets the final guide price and the terms of sale.

Banks and other mortgage suppliers dislike short-selling so it can take a long time for them to approve any offer made on a short sale property. This usually amounts to a wait of up to six weeks for the mortgage-provider’s approval.

During this period, in the current market, mortgages will have changed. Interest rates will have risen and it is possible that you will be unable to buy the property that you bid on six weeks previously.

Obviously, for any sort of speculator, time is money. Even for buyers interested in personal property as a home, this is a lot of time on such a risky deal.

Fortunately, there are other strategies available to investors that allow for changes in the market.

Investing in a buoyant market such as the one in Las Vegas now, is sure to build a very positive portfolio in the years to come. There is no harm in buying property for a high price if you are confident that the value of that real estate will grow. A true investor understands this and so will usually avoid the temptingly low prices of short sale real estate.

In fact, Las Vegas provides decent profits for any sensible real estate investor for reasons pertaining to the current market. Constant developments and new employment opportunities make it a reliable market.

You are likely to find many examples of short sale properties in Las Vegas because to the current market conditions. There are a lot of people that paid too much for his or her property originally; or who has altered the real property state in a way that was damaging to its value.

The key point to take away from this article is while short sales are risky, the can be very profitable if you have patience in the market. The key is to find a buoyant real estate market like the one that exists in Las Vegas. Sensible investments in a good market will repay you with a nice profit margin. Equally, people buying real estate as a permanent home may want to ensure that they don’t waste their family’s time on short sales or markets that will lose them money.

I hope this has helped you in your efforts to make money from real estate.

Simpsonville SC Real Estate Weekly Market conditions Report Homes Sold, Homes for Sale, House Values, Properties and Listings for Sale for May 24th-30th 2009

There were 33 Simpsonville properties sold during the week of May 24th-30th. The median price for Simpsonville homes was $189,000. Average Days on Market(DOM) was 130 days for this period. 

During this period, 5 homes in Simpsonville went under the pending or contingency contract status with a median price of $160,000.

There were 32 newly listed residential homes during this period, at a median price of $172,400. There were also 8 Simpsonville homes expired during this period.

Real Estate in Simpsonville is still very desirable as more and more people relocating to Greenville county are choosing to make Simpsonville their home. There are also several foreclosures and short sale homes available for sale for those buyers who are looking to walk in with instant equity.

Contact Me with your Simpsonville SC Real Estate Needs, and for Your Home’s Value Needs

START YOUR SIMPSONVILLE HOME SEARCH

· Victor Amadi – Your Simpsonville and Greater Greenville SC Real Estate Resource

As your Simpsonville SC and Greater Greenville residential Realtor, I am committed to staying up to date with local information, education, and technology. My intention is to be an invaluable real estate resource. So, whether you are buying or selling real estate in Simpsonville SC, Greenville SC, Greer SC, Easley SC, Mauldin SC, Fountain Inn SC, or other Upstate SC areas, I have the tools, knowledge, experience, and resources necessary to make your experience an enjoyable and successful one. Call me at 864-525-0201 so we can discuss how I can help make your next real estate transaction a success. Stats shared in this post was gathered from GGAR, it is deemed reliable but not guaranteed.

Before I begin, you should know my name is Ross Treakle and I interview real estate investors as part of my job. In each interview I try and pick and pry at each investor to get the highest quality information so that my subscribers can hear up to date, high content interviews.

Below I have taken an exert from the very first interview I ever conducted. I conducted this interview with my brother, Graham “Mr. Banker” Treakle. Graham is a short sale investor with special insider knowledge as he has worked in some of the nation’s largest banking institutions.

I always start off every interview asking the speaker to speak briefly about there particular area of expertise. Below is Graham’s answer to what a short sale is and why banks accept short sales.

“We’ll go over the numbers, Ross. A short sale is pretty simple. If you have a property that’s worth $150,000 and let’s say it has a first mortgage for $100,000 and a second mortgage for $40,000-what that means is the total debt on that property, or the total mortgages, is $140,000. Being a real estate investor, I wouldn’t want to buy a $150,000 house for $140,000. It doesn’t make sense.

A short sale is when you get the bank to not take $140,000, you get them to take less, like $110,000. The banks are going to do this for several reasons. First, they’re going to have a lot of expenses that are associated with a foreclosure. They’re going to have realtor’s costs, foreclosure costs, holding costs, repair costs-they’re going to have all sorts of fees associated with a foreclosure.

Inevitably, the bank is only going to recoup somewhere around 70% of the value of the property. That’s why banks will take short sales on foreclosures. The natural follow-up to that is, “Why are foreclosures such a hot commodity right now, and why is there a lot of buzz about them?” There are several reasons to that too, and it’s really scaring the banks right now.

The first one is: when I was at the bank and someone had equity in their home and I found out they had equity, I would call them up and say, “Hey, Mr. Smith, I see you have $30,000 in equity in your home. How would you like to get a home equity line of credit?” Or, “How would you like to pay off that car with a home equity loan?”

So banks are constantly calling these homeowners to use equity in their home because there are some potential tax savings in structuring your finances that way. That’s one of the things.

Secondly, inflation is outpacing wage growth. That means what it takes for you to buy milk and eggs today is going to increase faster than how much your earnings are going to increase on average. For instance, if you have someone who’s making $100,000 a year, let’s say inflation is 3% and your raise every year is 1.5%. So inflation is growing at twice the rate your salary is. That’s another component. That means folks are earning less and less, relative to the goods they’re going to have to buy.

The next thing is that a lot of folks may recall this brief refinance boom we’ve been going through, which is pretty important. People went out and got a lot of mortgages called “Adjustable Rate Mortgages,” which have an extraordinarily low interest rate to start, let’s say 3% in some cases. But in a couple of years, maybe two to five, depending on the term of the Adjustable Rate Mortgage, their rate is going to go up, it’s going to adjust upward.

So people went out and bought more house than they could normally afford, or they refinanced, got the low payments, and bought a car that they couldn’t afford if their payment had to adjust upward. What’s going to happen here in the next two to five years is that all of these ARMs are going to be adjusting upward, and that’s pretty critical because people aren’t going to be able to afford them.

They aren’t going to be able to afford them because they didn’t count on it, and also because inflation is outpacing wage growth. All of this sounds great, but you may say, “How is that going to affect my business?”

Here’s the way it affects your foreclosure real estate business. If you’re in a judicial foreclosure State, where properties that are in foreclosure go through a judicial process before a foreclosure is complete; or a non-judicial foreclosure State, where the properties go through a trustee as they’re going through a foreclosure-you’re going to see less and less equity in these properties.

So if you know, like I said earlier, that banks are going to take short sales because of the numbers-meaning they have to pay all of these expenses-and the foreclosed properties aren’t going to have a lot of equity in them, you have to be able to negotiate short sales effectively if you’re going to be working in the foreclosure market.

The foreclosure market represents the most motivated sellers. Traditionally, with motivated sellers, you’ll find really good deals. That’s why banks are going to take foreclosures on the conditions that are spurring on all these foreclosures. It’s an amazing phenomenon that we’re working on right now.

Folks might also ask about a common [inaudible]. Well, what if we’re in a real estate bubble? If we’re in a real estate bubble, that means values are going to go down, which means folks are going to owe more than what their property is worth. Again, negotiating short sales is going to be critical to your success in the foreclosure business. If we’re not in a bubble, that’s fine too.

We already [backed out] the numbers; still negotiating short sales is going to be critical to your real estate business because people are borrowing up to, and sometimes above 100% of the value of their property. Whatever way you slice it, as far as having a skill, negotiating short sales is probably, in my opinion, one of the most lucrative skills that someone can have as a real estate investor.”

I hope the above information gives you some insight into the world of real estate investing and short sales. Graham has worked very hard at becoming an expert on this topic and is a resource you should inevitably add to your business. If you would like to hear more information similar to this exert and many other interviews please visit my site at and sign up to receive all of my interviews at absolutely no cost. Also, if you would like to learn more about Graham “Mr. Banker” Treakle you can follow this link to his website.

Short sales are now a large segment of the Southern California real estate marketplace. Many agents, let alone buyers, do not understand short sales and tend to avoid them. The first big issue in pursuing a short sale is finding a broker willing to put the time necessary for the job. Most don’t want to show these for several reasons. The big three are short sales are a lot more work, homebuyers get very impatient, and they can be stressful if done wrong.

Let me explain these three issues in order. First, short sales are more difficult because in the place of a two party negotiation with just a buyer and seller, you have a four party deal with the buyer, seller, and two banks. And in this situation the seller and two banks don’t act the way a traditional seller would act. The current owner is upside down financially and just wants the loans of their back. They don’t always care about getting the best price which is wonderful for you. But the homeowner can also work a little against the purchase at times by not letting people see the house in the best of shape or even at all.

Meanwhile, the banks aren’t owners, adhere to certain bank rules and can be difficult to reach and negotiate with. They often use agressive type strategies in their efforts to maximize the absolute most money. In fact, the first and second loans fight between themselves because what one bank gets moneywise the other doesn’t. And getting access to those people require completed paperwork packages from the seller and an purchase contract from a potential buyer before the clock can start. Eventually there has be an agreement between two banks, a seller, and a buyer. By the time you get this all set, a period of 2-3 weeks can easily pass. Plus with the significant amount of short sales flooding in many banks are understaffed to handle the increased workload.

Once you are over that hurdle, the second biggest one is buyer impatience and lack of understanding. The worst buyer for a short sale is usually an excited first time homebuyer unless they have a solid communication level with their real estate agent. Because after the broker has everything forwarded to the financial institutes, the banks will take 10-14 business days to even examine it and pass it to a closer.

Preparing an pumped up couple to wait this out is tough. This is doubly true in Menifee and neighboring real estate marketplace now that there are a large supply of properties to look at. Plus, housebuyers today have the people around them in their head whispering that they should get better price or more service when they buy. Buyer lack of patience can be the most important variable and should be discussed before any bank short sale properties are looked at. If the clients are able to handle their patience, they just may get a fantastic deal!

Here is an example. Last month I promoted a Temecula home possible short sale deal to a new client of mine where they could get a house for over 70k off the its real value. But they would to have to wait a bit for bank approval, perhaps up to 3 weeks. The home was perfect for the buyer and was turnkey condition. Their response was in this market they would demand a response within 48 hours.

I risked my client contact and told them this opportunity isn’t for you because the banks don’t remotely care about you. They are 8-5 employee’s and have no attachment to the property and if you want to miss a fantastic deal, that is up to you. But I am willing to put in the time and effort if you can have the patience. And when we get approved, you will be moving in with significant equity and I will secure your business for the next time. After breaking out the details, they put in an purchase offer, got approval, and will close at the end of this month. Clear channels of communications, integrity, and patience can get the job done!

The last big issue is stress. Part of this has already been discussed when dealing with patience. However, the stress of what the bank will do, what people are telling you, and how drawn out the process is can make you crazy. For the broker, dealing with the other party and banks is downright tough. For the buyer, not screaming out your frustration on your broker is vital. Much of the tension is reduced by a thorough understanding about the situation and a twice a week update. If the buyer hears that the banks have not returned calls, they shouldn’t get upset.

With all that said, why do I suggest looking into bank short sales? Because short sales can offer a huge opportunity to get a great new home at a significant price. These homes are usually in great shape than REO houses and often they are still being taken care of. Also, they can be great for price negotiation for many of reasons.

Right now, banks are filled to the gills with foreclosure properties and the last situation they desire is another, especially when there is a solid buyer ready to buy. Why would a bank want to gain another when given the chance to sell one while more expenses accrue or the market goes down further? Their deduction is your gain and an good agent’s goal should always be to get you, the buyer, the greatest investment possible for today and in doing so, earn your business tomorrow.

Short sales are becoming more of a topic as overburdened real estate investors in Pensacola and Destin Florida look to relieve themselves of top heavy mortgage obligations. Savvy investors know to be aware of possible tax liabilities and the effect short sales have on your credit rating.

Homeowners will need to consider the effect short seeing will have on their credit rating. A lender will typically report a short sale transaction to the credit bureau. While it may be better than a foreclosure, a short sale will definitely leave a considerable mark on your credit report.

Short sales occur when a lender accepts an amount less than the amount mortgaged as the total payment to settle the real estate debt obligation. Essentially the lender allows the homeowner to sell his or her property for less than what is owed on the mortgage. For example, let’s assume your home’s mortgage is $200,000 and you have fallen behind on your mortgage. You decide you need to sell your home to be relieved of the remaining mortgage. Your real estate agent tells you based upon recent sales in your area that similar properties sell for $170,000 today.

The problem is that the homeowner who sells their home in a short sale may face a considerable tax bill based on the amount of the mortgage balance. Having the lender forgive the debt does not lessen the tax liability. The property will be taxed as if it were sold for the total outstanding amount of the real estate loan, or the sale price, whichever is higher. If the bank were to forgive the $30,000 deficit the money will be reported to the IRS as cancelled mortgage debt on your behalf.

Short sales are considered by the IRS to be a debt cancellation. Your Bank will send you an IRS Form 1099C-Cancellation of Debt. The IRS views the cancelled or forgiven mortgage as income to the borrower in the tax year the debt was cancelled. You may end up with a large and unexpected tax bill on April 15th of the next year.

Banks don’t always agree to short sales and generally will not consider one too early in the process. Short sales are easier to negotiate if you already have a purchase contract from a qualified buyer. The Bank will make its decision based upon a number of factors including the best interest of the depositors and the hardship of the homeowner. Homeowners are required to prove that they are insolvent in an audit like process that can take weeks or months to complete.

The taxability of the gain and deductibility of the loss depend on the nature of the property. The loss may be tax deductible if your property is a rental property. Talk to your tax adviser to see what options are available to you before you short sell your real estate.

A foreclosure home can be a profitable real estate investment. However, it is important to understand the pros and cons of this type of investment venture before plunking down your hard earned cash. While you might be fortunate enough to locate a foreclosure home in perfect condition, chances are you will need to engage in physical labor before the property is fit to live in or rent to tenants.

Your quest for the perfect foreclosure home should begin by obtaining pre-qualified financing. This will provide you with extra bargaining leverage and ensure you are qualified to buy the distressed property.

When seeking a foreclosure home for investment purposes, there are four options available. One of the most popular options is to purchase distressed properties through foreclosure auctions. Although you can usually buy foreclosure homes under market value, buying from an auction can lead to many headaches.

In order to buy a foreclosure home at auction, you must be prepared to pay the asking price along with any tax or creditor liens which may be attached to the property. Many foreclosure properties are sold “as-is” and require extensive repairs and renovations. Another downside to purchasing a foreclosure home at auction is sometimes the homeowner refuses to leave their property. You will be responsible for evicting the homeowner, which can be a harrowing experience.

Less stressful ways to invest in a foreclosure home include:

• Buy directly from the Seller
• Hire a real estate firm to bid on the foreclosure on your behalf
• Work with a real estate owned (REO) or bank foreclosure specialist

If you have never purchased a foreclosure home it is best to work with a Realtor or REO specialist. Working with foreclosure home specialists will provide you greater bargaining power and may help you obtain reduced closing costs or a lower purchasing price.

Realtors and REO specialists have a wealth of knowledge at their fingertips. They can help you locate a foreclosure home more quickly than if you search for them on your own. Additionally, they can you locate distressed properties in the area where you wish to reside or invest in rental property.

Should you decide to seek out foreclosure homes without the assistance of others, you will want to thoroughly research the area. Determine the availability of public and private schools, average property values and the anticipated value growth in the area.

After completing your research, compile a list of potential foreclosure home properties. Gather the contact information of the individual selling the property, than contact them to arrange a viewing appointment.
Be certain to take along a pen and pad of paper so you can make note of potential problems. If possible, take a digital or video camera as well. Inspect the house from top to bottom and make note of any structural damage, plumbing and heating issues, pest problems, and potential renovations such as broken doors, cabinets or flooring. The more problems you can locate, the better your bargaining power.

Many novice investors make the mistake of being tempted by low-priced foreclosure homes. Realize if a foreclosure home requires extensive repairs, it can cost a fortune and quickly deplete your profit margin. Investing in a foreclosure home that has a higher price tag, but requires fewer repairs might be a better option.

Prior to making an offer on any foreclosure home, be certain to find out if there are any liens attached. Creditor and tax liens can be an enormous legal hassle that consumes a great deal of time and money to resolve.

Once you locate the perfect foreclosure home and have conducted thorough research, it’s time to negotiate with the seller or place a bid through auction. The goal is to obtain the lowest price possible. Working with a foreclosure specialist can help you waive closing costs or reduce the rate of interest on the mortgage loan.

With foreclosures on the rise in Southern California, the team at REALESTATE-SANTAMONICA.COM has been getting a lot of inquiries about short sales. Mostly people are asking what they are. Well in short…no pun intended, a short sale is a transaction where the lender is willing to take less money than what is actually owed on the mortgage. The point behind this is to avoid a foreclosure.

Foreclosing on a home is something that the bank as well as the borrower usually tries to avoid. When the borrower defaults on a mortgage (doesn’t pay for months in a row), the borrower begins to accrue much more than just the mortgage payment. Quickly other expenses begin to add up, such as late fees, attorney fees etc…not good.

With a foreclosure the lender can lose nearly half of the mortgage amount because of the costs involved in foreclosing on a property: attorney fees, lost interest, property maintenance, court costs etc. Foreclosure is also a very drawn-out process. It can take over a year in some states. Because of this, many lenders are amenable to a short sale over a foreclosure so that they can simply cut their losses and move on.

Short sales can also be in the homeowner’s best interest as well. Most agree that the primary benefit to the homeowner is that he/she is able to get out from under the mortgage without suffering through a foreclosure. Additionally, the homeowner’s debt is getting taken care of for much less than is actually owed on the home. The homeowner’s credit is usually spared some of the wear and tear caused by foreclosure as well.

What is the process?

When a homeowner gets behind on the mortgage and wants to try and avoid foreclosure, the lender must be contacted immediately. The last thing a lender wants to do is foreclose, but there is a process that needs to be started to make a short sale possible.

The lender will usually require quite a bit of information including:

- Hardship Letter. Basically the homeowner is telling the lender the story behind being late with the mortgage. Additionally the letter should request a short sale.

- Bank Statements. This is to verify assets…or sadly, the lack thereof.

- Income documentation. W-2’s or 1099’s to verify the borrowers’ income.

- Value of Home. Banks will either order an appraisal or a CMA “comparative market analysis.” CMA’s are generated by realtors and we at realestate-santamonica.com can help with that.

- Listing Agreement. This just documents that the home has been put on the market. After it sells, the purchase agreement is included as well.

With any luck the lender will approve the short sale and the home will not go into foreclosure. If the short sale occurs, a preliminary proceeds sheet is generated. This document lists the net proceeds of the sale after the mortgage is paid off, as well the closing costs and all other related fees. This amount will be negative…and is the shortage.

Potential Consequences

Before requesting a short sale, a borrower should consult with his/her attorney and/or accountant as there are a few things to be mindful of.

First, the lender may require the borrower to sign a note to repay the shortage. Also the lender may file a collection or judgement to recover the shortage. A good real estate attorney will be able to guide the borrower through this.

The IRS may also come calling for the income taxes owed on the amount of the shortage. A tax professional should be contacted by the borrower regarding this.

Hopefully this shed a little light on the world of Short Sales and remember REALESTATE-SANTAMONICA.COM is here to help you.

It was a real estate boom like no other. Interest rates were dropping incredibly, homes were garnishing appreciation by the week, the stock market wasn’t moving and first time home buyers were getting their piece of the American dream. Mortgage brokers, Real Estate Agents and New Home builders were raking in the cash. It seemed like it would never end. Month after month, year after year the sales of new and existing homes climbed. Investors threw their money into the housing market and then as fast as it came it went thud.

The thud started around November of 2006. It started incrementally with a slower than expected August, a quiet November and the news articles started to reflect which was inevitably going to commence. In January of 2007 the Real Estate Taxes were due and crash it went. What seems to be happening now is a rush to unload. From the outside looking in you can see the stock market rise as the housing market falls. New home builders with still a glimmer of hope increase the price of new homes yet offering larger than expected home incentives. Upgrades galore, creative financing, buyers agents bonuses and yet they continue to build on the land they have allocated for future expansion. If it seems familiar, it is. It has an uncanny sense of 1983 all over again.

How did this happen and what makes this housing thud different from the last? There are some minor differences that make this more unique than the last housing crash. Back in the 80’s interest rates were at sometimes 16%. At that point it made sense to try to assume a mortgage that was a lower interest rate and throw your cash into their equity. But it wasn’t realized equity. It was an inflated sense of a market share. As prices dropped home owners found they were in an over valued situation and as the job market suffered they could no longer pull their money out of their house to move on with their lives. It caused a ripple affect of people walking away from thousands of dollars just to save what they had left. Real estate was sold at auction in a manner that you would buy livestock or sheriff’s sales and the late night infomercials were non-stop. “No Money Down” was the catch phrase. You can still find those publications that cite 20% interest rates and how finding a home with a 10% interest rate was a real steal.

So what happened in the last decade? Feeding on that premise that no money down is something of a desired situation and interest rates dropping most people would assume the best investment was their home. Out the window went the premise of paying down your note and having a secure position in your most valued asset. For some time it was just a matter of the educated investor refinancing a higher note and gaining equity in their home just by dropping their interest rate. It was a normal progression of an intelligent move. Refinancing could shorten the length of your home loan in some instances by 15 years and also lower your monthly payment. And then arose the hungry new home builder, the starving loan officer competing in a new market and the incredible increase of Real Estate Agents flooding the market.

Here’s how it worked. In most instances this was a first time home buyer. They were to purchase a house no money down. There would be two loans. The 80% back loan that was a fixed rate of sometimes as low as 5% and then the front loan. The front loan represented the 20% down that was typically the homeowner’s down payment. That 20% loan was an adjustable rate mortgage that was incrementally to increase over 5 years and then a balloon was to sit waiting at the end. The buyer confused by all this new jargon would ask, and then what? It was explained with the advent of interest rates dropping it was standard practice at that point to refinance that loan with another fixed rate loan or refinance the entire note at one fixed rate. It became such a standard practice that the next step made even less sense. Why not just incorporate your closing costs as well? And they did. Up to 6% of your closing costs could be rolled back into your loan. The buyer would ask what their monthly payment was and assumed that was an affordable note and there you have it. It was a disaster waiting to happen.

The second victim was the investor. The investor that in most instances was watching their money sit either in CD’s that showed a dropping interest rate or a stock market that refused to move. The investor would buy these new homes with incredible incentives and it was explained that the home had these upgrades to the standard built home, the home would ofcourse appreciate to where they could sell in 5 years and realize the equity of a moving home market, and then reinvest. They even came with appliances so that they could rent them immediately. Could there be a catch?

So here’s where it all plays out now. The new home buyer is in the home of their dreams. And the interest rates instead of dropping are now increasing. So incrementally their payment increases. Then to add insult to injury the home they purchased had an estimated tax base of an empty lot. So the taxes figured at closing were estimated on a fraction of the value of completed construction. Here comes the new appraisal on completed construction and your tax base increases by 150%. These new home buyers revisit that 20% loan and notice that the note is coming due. Struggling to understand the increase in their monthly mortgage payment, coming up with the added cash for their balloon, compounded with the increase in gas and consumable goods is overwhelming. So, as suggested by their loan officer they search to refinance.

What was not explained to them is with the rush of foreclosures on the market and millions of people in the same situation, you must have equity to refinance. You must show the ability to be able to support your note. And they are turned away.

The investor finds themselves in a new subdivision competing with new home sales and no equity. The builder has built in their contract that they can not erect a sign in their yard advertising the property for sale until the subdivision is completed. There are not to hang a lock box on the door. So basically they must rely on the local MLS to market their property. To add insult to injury now the new homes are selling the exact same house they purchased 2 to 5 years earlier for less than they purchased it and adding more upgrades and incentives to new home buyers.

This created a flood of foreclosures on the market. People frustrated are electing to walk away from the home and their good credit rating. Lenders are found at the court house steps now purchasing these homes, fixing them up and reselling them. In some instances the homes are not even rehabbed but placed back on the market sold “as-is, where-is”. That would be the new catch phrase.

In order to circumvent the costs of the foreclosure the lending market created an alternative for a homeowner to stop their foreclosure. This system has now been name a “short sale” or a “pre-foreclosure”. The short sale is handled this way. The homeowner without any equity in their home approaches the mortgage company and requests a short sale. They are to fill out financial information substantiating that they are no longer able to pay the note. Upon acceptable of the package the home is then listed by a real estate agent on the local MLS and marketing as a “short-sale” or “pre-foreclosure”. The offers are then submitted directly to the lender and the lender will make the decisive move as to whether to accept the offer or renegotiate. The homeowner at this point is nothing more than a signature on the listing agreement or the closing statement.

Once the lender comes to an agreement with a prospective buyer the closing date is set and the house changes hands. In most instances the loan is reported as being satisfied and the homeowner now can relax and move to a more comfortable situation. There are floods of new seminars on purchasing property in this type of distressed situation and even though it is a reliable way to purchase property the best case scenario is ofcourse an end user. This is a particularly good way for a home buyer to purchase a property in relatively good condition for a discounted price.

As a real estate agent in the Houston area I have found it difficult to find documentation to send my sellers to to educate them in the process. Most websites are about buying real estate in a short sale situation but I have been limited in finding documentation to support how you would sell such home. Henceforth the publication of this article.

If you want to be a competitive vendor in the market of real estate, you must know the technique of short sales. The main advantage of this technique is to allow discount to real estate investors from the lender.

What are short sales in real estate investing?

A short sale process comes in the picture when lender accepts a discount on mortgage in order to avoid a possible bankruptcy or foreclosure auction. In this method, instead of buying the property from a seller itself, you have to purchase the corresponding property from the lender. As an advantage you will get a handsome discount on that property. For instance, suppose a home owner facing foreclosure, has an existing mortgage of $400,000. Then you offer to the lender directly for $300,000, which may be accepted as a full payment loan.

The question arises here that why they are willing to accept this kind of deal and give discounts? Well, there are two main reasons behind this deal. First reason, banks do not want bad loans to be written on their books or record because bad record hinder the growth of the banks. Therefore, whenever banks get the opportunity to sell the property without any huge loss, they will sell it. Second reason, lenders know that if property goes to auction, they will pay heavy loss because if the property goes for auction, there are so many fees involved in it. Thus, they would give discount and finished it.

It is the best time to jump in the short sale process of real estate and invest in it since the foreclosures are increasing rapidly.

Lenders’ willing to give discount

Almost every lender offers discount. Market is inundating with lenders, who are willing to give discounts. It might be possibility that you find lender who dose not provide any discount but it is rare. Only two or three lenders in many may not offer any loan or provide small discount.

What kind of property is best for investing in short sale?

According to shrewd investors in short sale investing system, the best property for investing is the houses that requires lot of repair and renovation because on these kinds of properties, lender will give you a huge amount of discount to investors. Properties that are leveraged are also very good for investing. Most experienced investors are willing to invest in over leveraged properties.

Properties having large amount of second mortgages are also recommended as gold because second mortgage can be eradicated at the foreclosure auction.

Important step while dealing in short sale

There are many steps required to take while dealing in short sales. But the most vital step is to getting the deed of property. Most of the investors forget this essential step while investing in short sale. It might be the case when, homeowners change their minds, and want to back out from the deal as they scared or in other case, they want to do negotiation again. If you have property deed then you could easily escape from the trap, otherwise you might get in trouble by bearing heavy losses.

 Simpsonville SC Residential Real Estate Weekly Market Condition, Homes Sold, Home Values, Properties, Listings, and Homes for Sale – July 5th – July 11th 2009

For the week of July 5th – July 11th 2009, there were 9 residential listings sold. High list price was $235,000, Low list price was $132,900, Median list price was $168,445, and total volume was $1,543,944. High sold price was $225,000, Low sold price was $130,000, Median sold price was $164,500, and total volume was $1,496,999. High Days on Market (DOM) was 364 days, Low DOM was 0 days, Average DOM was 147 days, and Median DOM was 90 days.

During this period, there were 15 listings that went under Pending, and Contingent Contract status. High list price for these listings was $589,000, Low list price was $59,900, Median list price was $129,900, and total volume was $2,915,545.

Also during this period, there were 44 new listings that were put on the Greater Greenville real estate market. High list price was $535,000, Low list price was $84,999, Median list price was $208,950, and total volume was $10,362,543.

Feel free to contact me at any for the activity in your Upstate South Carolina neighborhood, and for all your Upstate real estate needs.

Simpsonville SC Residential Real Estate Weekly Market Condition, Homes Sold, Home Values, Properties, Listings, and Homes for Sale – June 28th – July 4th 2009

For the week of June 28th – July 4th 2009, there were 31 residential listings sold. High list price was $389,900, Low list price was $38,500, Median list price was $159,900, and total volume was $5,541,275. High sold price was $369,000, Low sold price was $32,000, Median sold price was $163,400, and total volume was $5,350,435. High Days on Market (DOM) was 421 days, Low DOM was 2 days, Average DOM was 115 days, and Median DOM was 55 days.

During this period, there were 10 listings that went under Pending, and Contingent Contract status. High list price for these listings was $487,000, Low list price was $59,900, Median list price was $194,900, and total volume was $2,025,900.

Also during this period, there were 38 new listings that were put on the Greater Greenville real estate market. High list price was $549,900, Low list price was $89,900, Median list price was $199,950, and total volume was $9,295,161.

Simpsonville SC Residential Real Estate Weekly Market Condition, Homes Sold, Home Values, Properties, Listings, and Homes for Sale – June 21st – June 27th 2009

For the week of June 21st – June 27th 2009, there were 22 residential listings sold. High list price was $535,000, Low list price was $94,000, Median list price was $164,900, and total volume was $4,823,100. High sold price was $459,000, Low sold price was $94,000, Median sold price was $163,700, and total volume was $4,564,100. High Days on Market (DOM) was 495 days, Low DOM was 0 days, Average DOM was 86 days, and Median DOM was 62 days.

During this period, there were 14 listings that went under Pending, and Contingent Contract status. High list price for these listings was $399,900, Low list price was $44,900, Median list price was $151,950, and total volume was $2,448,910.

Also during this period, there were 38 new listings that were put on the Greater Greenville real estate market. High list price was $299,000, Low list price was $88,000, Median list price was $224,479, and total volume was $11,758,459.

Simpsonville SC Residential Real Estate Weekly Market Condition, Homes Sold, Home Values, Properties, Listings, and Homes for Sale – June 14th – June 20th 2009

For the week of June 14th – June 20th 2009, there were 25 residential listings sold. High list price was $474,900, Low list price was $91,000, Median list price was $150,000, and total volume was $4,711,888. High sold price was $457,450, Low sold price was $87,000, Median sold price was $149,900, and total volume was $4,533,348. High Days on Market (DOM) was 322 days, Low DOM was 6 days, Average DOM was 85 days, and Median DOM was 59 days.

During this period, there were 14 listings that went under Pending, and Contingent Contract status. High list price for these listings was $399,900, Low list price was $66,499, Median list price was $162,950, and total volume was $2,734,355.

Also during this period, there were 32 new listings that were put on the Greater Greenville real estate market. High list price was $724,900, Low list price was $112,000, Median list price was $248,950, and total volume was $8,934,805.

Feel free to contact me at any time for the activity in your neighborhood, and for all your Upstate South Carolina real estate needs. Stats gathered from the Greater Greenville MLS.

Victor Amadi – Your Simpsonville and Greater Greenville SC Real Estate Resource

As your Simpsonville SC and Greater Greenville residential Realtor, I am committed to staying up to date with local information, education, and technology. My intention is to be an invaluable real estate resource. So, whether you are buying or selling real estate in Simpsonville SC, Greenville SC, Greer SC, Easley SC, Mauldin SC, Fountain Inn SC, Pickens, Powdersville, Taylors, or other Upstate SC areas, I have the tools, knowledge, experience, and resources necessary to make your experience an enjoyable and successful one. I can also help you avoid foreclosure, find Foreclosures and Short sale Properties, listings and Homes for Sale. Call me at 864-525-0201 so we can discuss how I can help make your next real estate transaction a success.