Preforeclosures with Equity?

Submitted by CIP from CA - 08/23/2010 - 6:46pm

I noticed in FR on the Preforeclosure list there are some properties that have some equity, can these potentially be short sale prospects or do all short sale prospects have to be upside down with negative equity? For example if a homeowner has 30-40% equity or any equity showing and a NOD has just recently been filed what is the strategy an investor would use to go after this property and talk with the homeowner?

You are not watching this post, click to start watching

Comments

Submitted by Michelle - 08/24/2010 - 8:55am

A short sale is only a short sale if an owner is selling a property that is over encumbered by loans and the lender is agreeing to take a reduced amount and release the lien on a property. If someone is in default and has equity they could sell the property and it would be a traditional sale. There may be other factors like HOA liens, mechanics liens, IRS liens or other issues that are preventing the homeowner from selling the property and avoiding foreclosure. If you are interested in buying the property you should absolutely contact the homeowner.

Post new comment

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.

More information about formatting options

Before You Post

All comments should be relevant to the topic of the post and are subject to the terms found in our User Agreement.

Asking a Question

If you'd like to ask a new question, please start a new topic.

Please no SPAM.

We nofollow all links and promptly remove unsolicited advertisements - spamming here is a complete waste of your time, so don't bother. Vendors who actually answer questions and provide value to our forums may include links to their company or service as part of their signature.