Yielding Wealth | Personal Finance

Real Estate Investing: Short Sales

by miranda on November 20th, 2007

For the savvy investor, it is possible to find opportunities all around, and especially in times like this. The subprime lending crash has created a number of opportunities, from cheap real estate stocks and REITs to the opportunity to take advantage of the current buyer’s market in many areas. And one way to do this is through short sales.

What are short sales?

Short sales take place when the seller offers the home for less than he or she still owes on the mortgage. Most of these types of sales require lender permission to go through, and in cases of foreclosure the lender is more willing to allow such a move. Other motivations for short sales include a need to move far away, making renting the home inconvenient, or some other need for a quick sale.

In this market, you can find good deals if you look for short sales. But remember, the current real estate market downcycle could last for a while. You need choose carefully to ensure that your choice is one that will increase in value.

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POSTED IN: Investing, Real Estate