• Tuesday, January 12th, 2010

how foreclosure sales work

How are people making money off of short sales? Can someone explain how this works?

I see all these infomercials for programs like the “millionaire mindest collection” and I have not been able to figure out how they expect you to make a check off of someone else’s near foreclosure. If you know what you’re talking about, please explain the steps, thanks!

Basically it’s asking the lender to accept less than what’s owed. So if a piece of property is worth 100k and has a loan on it for 105k and the lender is willing to take 80k, you now have a 20k profit if you sell the place.

Here’s a good book:
Make Money in Short-Sale Foreclosures : How to Bypass Owners and Buy Directly from Lenders by Chantal Howell Carey

The same authors wrote a book called “quick cash in foreclosures”.

Regards


how foreclosure sales work

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