First Deal a Short Sale Property?

2 Replies

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}

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here