Did you know that banks are holding back properties from foreclosure?  How is this done, well let me explain.  Instead of banks proceeding with foreclosing on delinquent homeowners, they modify the loans, knowing homeowners still cannot afford the property.  This drags out the foreclosure process to keep the list of foreclosures down. 

Now there are approximately 1.5 million loans in foreclosure.  There are 3.5 – 4 million loans that’s seriously delinquent that are being modified or slowed by banks.  Take a look at this video from CNBC for more details.

If you are an investor, now is the time to focus on short sales.  Again, a short sale is when the lender agrees to take less then what’s owed on a property in a sales transaction.  Short sales are not for the faint at heart to negotiate.  You must have some experience and knowledge in order to be successful in getting your short sale offer accepted.  I recommend 1st Choice Loss Mitigation as the negotiating party for short sale negotiations nationwide.  They are experienced and have a reputation of successful short sale negotiations.  Also, if you have a possible short sale lead, 1st Choice Loss Mitigation will partner up with you on the short sale and assist you with selling it.  The profit will be split down the middle with the investor and 1st Choice. 

Based on the information in the above video, this is a perfect storm for available short sales that’s been brewing for some time now.  I know that on the last 2 short sales we’ve been able to pick up through 1st Choice Loss Mitigation, the lender accepted our initial offer.  There was NO COUNTER OFFER at all, Wow!!  That’s why this market is perfect for buying short sales, cause banks are very flexible and they need us, not the other way around.

If you are an investor, now is the time to buy short sales.  Find you a couple of good Realtors to work with, a great loss mitigation company to negotiate your short sales, and some deep pocket buyers and you can make boat loads of cash in the next 2 years flipping short sales to buyers. 

Till my next post….