Home buyers and investors are attracted to short sales and foreclosures because they want to buy a home for less than market value.The best way to make money in real estate is to buy low and sell high.Not all the homes that go into default go all the way through foreclosure.
To pull a home out of foreclosure, buyers need to make up back payments to the lender, pay all imposed fees and either pay off the loan or make arrangements to sell the property.
Buyers and sellers who want short sale or foreclosure needs to seek legal advice before entering into an contract.There might be few lenders who lets buyers assume an obligation for buying short sale homes like:
1.Buying Distressed Homes-Involves three way process from seller in foreclosure,negotiating a short sale,buying from the lender.
2.Buying Short Sales-Its much complicated as it takes much longer to close the transaction.As not all the short sales are profitable.
3.Buying Foreclosures-Involves negotiating directly with the seller and buyers have the option of bidding on foreclosure at the auction.
Sellers have rights in foreclosure along with few options like:
1.Stop Foreclosure-lets seller to keep a home through mortgage modification or any repayment plans.
2.Short Sale for Sellers-Through negotiating what lenders want from sellers by accepting unpaid mortgages.
3.Foreclosure and Short Sale Taxes-Sellers can owe the government taxes even if they lose money on sale.