Hello all, I will be looking at a few homes tomorrow and one of interest is a short sale 2 family home. I have done research on a Short Sale, but in simple terms what exactly is it? Is it a good idea for a first time investor to invest in a short sale or should I look else where? I suppose PROS/CONS of it.
A short sale is simply a bank agreeing to take less money then what the borrower owes on their mortgage. There are 2 types 1} approved and 2} unapproved. An approved short sale is when the bank has agreed with a definite number that they would take and an unapproved it when the agent solicits offers to the bank with out approval. The process can take awhile a especially for unapproved. You will see a lot of low bids for this type that give people false hope. An approved short sale may or may not be a good deal and many times their could be multiple bids (due diligence}
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