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How to Do Short Sales Versus Buying Bank Notes — A short Comparison

How to do Short Sales, A difficult Investment

This article is for anybody who have tried your hand at short sales and realized that they’re harder than they look.

Here’s a quick side-by-side comparison.

How to do Short Sales, The prerequisites

Short sales are transactions that high quality undetectable counterfeit banknotes for sale involve a willing borrower you have spent time convincing that they would be a likely candidate for a short sale.

And a loss mitigation police officer overwhelmed with short sale recommendations who often takes forever to return to you documentation.

Short sales as compared to buying Bank Notes often require borrower financial statements, tax filings, bank statements, pay stubs, trouble letters and HUD-1s and money.

If you’re able to close a simultaneous short sale, you may not have to fund anything. Otherwise, you have to finance the invest in the bank.

How to do Short Sales versus Buying Bank Notes

Real estate note purchases involve a 2nd asset manager or loss mitigation police officer who has perhaps 5 to 30 investors. (they handle the documentation unlike a short sale). After you have reviewed the loan documents, you have a purchase and sale agreement, and an task of mortgage — they will be very similar for all lenders money. Short sale transactions require a lot more paper work.

In defaulted mortgages, you will need money to purchase the Bank Notes — however, there are strategies to pursue certain types of notes that basically require very little capital. More on that later.

Short Sales and buying Notes in California

Municipal Code 1695 doesn’t affect you (if you’re taking title as part of a deed-in-lieu negotiation, you’re exempt from the difficulties on fairness purchasers) You have multiple exit strategies (as averse to short sales where you need to find a buyer and get the property sold). These include refinance, mortgage loan modification, selling your bank note, foreclosing, or getting a deed-in-lieu.

Unlike short sales, there are no licensing requirements if you’re buying a bank note with a single (as averse to fractional) interest.

You are not susceptible to potential litigation as you are in rent option deals (e. grams. your rent option is interpreted as a loan and you’re accused of fairness stripping) — in a bank note purchase versus doing a short sale, you can simply modify your loan. You are, however, susceptible to changing foreclosure laws, since you’re now the financial institution.

A Closing Thought on Short Sales and buying Bank Notes

I’ll leave you with this — You may have thought that short sales were a pain-in-the-butt because of the uncooperative lender you’re talking with. You may find yourself opposed to this of the table if you buy a bank note, and have an investor come to you with an offer asking if you’ll take a discount on your defaulted mortgage in order to sell the property.

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