short sale, foreclosures and short sales
Many ambitious real estate investors are faced with a tough choice these days in deciding between pursuing foreclosures and short sales. Which is a better deal for real estate investors? Well, it's no secret that a short sale is usually the better deal for the mortgage lender. Going through foreclosure proceedings can cost a lender as much as 30% of the value of the property. So believe me when I tell you that banks would much rather do a short sale than have to do home foreclosures. On the other hand, even though it's in their best interests to do short sales than foreclosures, banks and other mortgage lenders are so overwhelmed with all of the properties that they must take possession of that these transactions can take months and months to complete, simply because the mortgage holders just don't have the staff in place to process all of the paperwork that these transactions require. So, if you want to buy a short sale property, thinking it's a good deal, then it probably will be a good deal, but it will take a lot of patience to see it through.