Three Short Sale Investing Myths
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Posted On :
Apr-15-2011
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Article Word Count :
556
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The article discusses the common myths associated when buying shortsale properties and the reality behind these fallacies.
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Lindsay Lohan was once heard saying: “Don’t believe everything that you read about me in the papers.” Now, I have to admit--even with all the allegations and rehabilitation going on in her life—that what she said was very, very wise. DON’T BELIEVE EVERYTHING YOU HEAR. Not only does this apply to child stars gone wild, it also applies to what people say about shortsales as well.
A short sale happens when a borrower cannot pay his mortgage loan, so the lender will sell the property at a discounted price so they do not have to go through the expense of foreclosure. Many investors have doubts whether to buy shortsale properties, only because they hear so many horror stories about the process. Sure it can be a time consuming process, and there is paperwork and hurdles that you have go through, but getting a good property at the right price can be worth it.
The truth is, buying shortsale properties can be good news for real estate investors. Buying the right shortsale property can be like finding buried treasure. However, make sure to separate the myths first before becoming all giddy about it. Look for the following:
Myth No. 1: Short sale investing is too complicated to learn for a beginning real estate investor.
Where did you hear that? From an Agent that wants to sell you a property quickly so they can get the commission? Understanding the shortsale negotiation process is easy if you invest the time to learn more about it. Just like with any other skill, things get easier if you build your foundation step-by-step. Also, make sure you are getting the right kind of knowledge from the right kind of people. Things will become complicated if you do the opposite.
Myth No. 2: The process of short sale investing is fast.
No, it’s not. It takes a lot of time before things get moving. Prepare for long hours of dealing with paperwork, red tape, formalities and other obstructions. You need a lot of mental and emotional strength not to get blown away and lose that focus.
Myth No. 3: You need to get the deed when you start the short sale process.
If you think this is true, then you will get stressed and frustrated—a lot. Here’s the scenario: many homeowners who are thinking of selling their houses will suddenly get cold feet; or they can suddenly change their minds and realize, in one brief Britney Spears wedding moment, that they made a mistake in their decisions. There are others who want to re-negotiate because they realize they didn’t set their price higher. Whatever the case, some gurus tell you that getting the deed will ensure that you have full control of the property. The problem is that in a lot of states, there have been laws passed specifically forbidding that process. Also, when you get the deed--whether it is filed at the courthouse or not--the title transfers can put you in a bad predicament when push comes to shove.
Always remember to take things with a grain of salt whenever you hear something about shortsales, so learn to separate the fact from the fiction. When in doubt, always remember the sage advice of Lindsay Lohan---and you will be fine.
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Article Source :
http://www.articleseen.com/Article_Three Short Sale Investing Myths_59292.aspx
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Author Resource :
Feel free to see more latest Real Estate trends in Seattle and San Jose California, including Real Estate Market Guides and Buy land real estate guides. Visit us at http://bloggericious.com/delicious/realestate/.
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Keywords :
real estate trends, real estate market guides, commercial real estate, real estate investors guide, buy land real estate guid,
Category :
Finance
:
Real Estate
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