Expert Foreclosure Help

Short Sale Vs Note Buying – Tips to Avoid Foreclosure

Today’s housing industry is a nation of many foreclosures, and even more on the horizon. Analysts are predicting a slowing in the latter part of this year, but what will be done until then? An investor strategy, short sale or an even better strategy of buying a homeowners note may do the trick.

Let’s look at each one individually. Short sale versus buying the note; One is not necessarily a better option than the other one, if a lender were to give a choice, not too likely, then buy the note.

A short sale is when a person facing foreclosure is allowed by the lender to sell the house for less than the price owed. In today’s housing market of foreclosure landslides, we will being seeing a lot of short sales in the hardest hit markets such as California, Florida, Nevada, Arizona, Georgia, Ohio, and Michigan.

There is truth to the old adage, what goes up must come down. What went up the fastest will fall the hardest.

The sub prime lending of the aforementioned areas will have many more foreclosures than short sales. This is due in part to a glut in the housing market. Too many homes available is the one big hurdle of a short sale.

If seller A has an impending foreclosure and has negotiated with the lender to sell the home on a short sale, and seller B, down the street has done the same thing, with a similar house, then the buyer now has two properties to chose from. If faced with the same area and similar home, of course the buyer is going to pick the least expensive house.

The only recourse for the other seller is to hope for another buyer without another short sale becoming available before hand.

Tip, on a short sale the homeowner may not occupy the house. So, please do not ask your friends and relatives to purchase your home on a short sale then sell it back to you at a latter date. This practice is illegal.

With a note purchase there isn’t any competition. It would not matter if the entire block, in many areas this actually could happen, were to have their defaulting note purchased by an investor to avoid foreclosure.

The purchasing of a note to avoid a pending foreclosure is a risky venture for the investor. If they purchase the note and the person defaults again under the new terms and agreement then the process of foreclosure could be avoided with a deed in lieu of foreclosure.

Tip, a foreclosure would not show up on your credit report if this option were to be exercised, thereby still avoiding foreclosure, but losing the home.

Many investors and investor groups, such as Immaculate Enterprises, LLC will inform the property owner that the foreclosure process has not halted until the homeowner finishes the terms of the new agreement. The new agreement lasts for a period of 3-5 years, and the monthly payments are lower than their current sub prime loan.

Tip, with a note purchase all parties win.

The bank wins by changing a non producing asset into a producing asset. The homeowner wins by being able to stay in the home without violating any laws. The investor wins by having a producing asset from very grateful people who would have other wised lost their American Dream.

Andrea A. Allen http://www.ImmaculateEnterprisesllc.biz/stopforeclosure.php

http://hubpages.com/hub/What-is-Immaculate-Enterprises–LLC-all-about

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