Short Sales

9 Replies

I have heard horror stories about short sales, but see a lot of them in my demographic that could bring in a great cash flow if I decided to make the move. My agent says they just take time, but I have heard of people losing time and money if the sale gets rejected by the bank. Can anyone in South Jersey give me any feedback on their experience with short sales? Thanks in advance 

Yes, it is true you do lose time because they take so long. But so many homes are short now because of the market, I would suggest looking for the ones that state that they have already received third party approval. 

Great luck.

@Greg Wake  

is correct.  Look for the ones that already have a short sale approval letter.  It will take less time and be less of a headache.  

Just had a buddy of mine complete a short sale in California.

It took 1 year and 5 months.     Crazy

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I LOVE short sales as an investor. When we did it for a primary, it was dicey (we were homeless) but SO worth it for the price.

I wrote a great article (although I am biased) on short sales for the bigger pockets blog.

@Elizabeth Blazina   

In the 4 short sales I have closed in the NUMEROUS others I have worked on including the 3 I Neck deep trying to close. None of them require inspections or appraisals until you have the bank approval. Very few even require ernest deposit. 

While they can take a crazy long time as investors they can be amazing "vehicles". They are my favorite. Since they are already swindling feel free to not jump on the band wagon. *smile*  JK

Let me know if I can help!

@Elizabeth Colegrove  Thank you so much for your insight and for posting the link to your blog! I am new to investing and my fiance and I are developing our plan and strategy to acquire homes in the future and we were wondering how short sales would work. We kind of thought for rental properties the time doesn't matter so much because we already have a place to live, but I didn't realize some of the other benefits as well. Your tips will come in handy in the future and make us a bit more brave when we see short sales!

@Account Closed  

That article is actually part of the bigger pockets blog. I write for them weekly (or at least try too!) You should definitely check it out as there are tons of great resource from all topics!

You can find people's individual blogs located in their signature :0 

Mike, Im not from South Jersey, but so far the key for me is to fill up my pipeline with pre-foreclosure opportunities. 

What they would cost you is the down payment and the contractors report. A contractors report is optional. 

You'll know what the bank will want when the approval letter comes in.

Smart negotiators are a factor as well.

Hope this helps.