Of course it's really nothing new but it's new to a lot of people doing short sales. Once upon a time there was a very hot real estate market pretty much across the nation. If a home went into foreclosure it went all the way to the courthouse steps because of many reasons - mostly lenders really didn't have to sell short.
So What is the Change?
Talk has been going around on the lender side for weeks about starting the bidding short at auction. In other words where auctions on first mortgage foreclosures were generally started at the first mortgage payoff price more and more lenders are going back to The Old Way and opening the bidding on properties short of the payoff. Now for those of you who have been in that side of the industry for a while (a decade or so) you'll know this is nothing new. But for the past 4, 5 or even 6 years most auctions were opened at payoff of the first mortgage balance.
A Word Of Caution
Don't let this change your approach to short sale investing. Firstly if you can successfully negotiate a short sale pre-foreclosure you're helping the lender and the homeowner by preventing that foreclosure. You will also be helping yourself because there will be no bidding competition - just you, the homeowner and the lender.
Still don't know about Short Sales? Still missing this fantastic opportunity? Well, what are you WAITING FOR?
Ken Cook - Georgia - FHA, USDA, VA and Conventional Home Loans (678) 439-8683 NMLS ID 208452
My employer: AmericaHomeKey, Inc., 2870 Johnson Ferry Road, 150, Marietta, GA 30062 NMLS ID 102930. Georgia residential mortgage licensee 23191. Equal housing lender.
