Srini Saripalli

What is a short sale? Simply put, a short sale is something that occurs when a homeowner can no longer afford to make their house payments and their lender is willing to accept less than the total amount of the loan for payoff. Sounds like a good deal, doesn't it? It might not be such a great deal. Here are a few reasons you should stop and think about it before jumping on that short sale.

The Housing Market vs. the Short Sale Amount

Knowing how much the home is worth, property values in the neighborhood as well as the price of the short sale. How much is the home worth, compared to the amount owed? What is the housing market like? If the housing market is in just such a downturn, it doesn't make sense to take on another home to try to sell, especially if it's one that needs repairs, is in a neighborhood that is worse than the general housing market or is worth less than what the short sale price is going to be.

Short sales can be found in many places today. Quite a few real estate investors are in the market strictly for these sales. Following the crowd is not such a good idea. Why should you do exactly what every other investor is doing? What happens when their practice yields poor results? You'll go down with the ship. Doing your own thing can sometimes seem scary; sometimes you'll even wonder why you're not doing what everyone else is doing. Following your own methods is the best practice, always.

While many lenders are open to considering short sales, rather than a foreclosure, you should be aware that the cash on hand required for these can add up to a hefty sum. Short sales are really not that much of a good deal, when considered in depth; they can carry some deep pitfalls and potential problems.

There is an option that requires less cash on hand and far fewer problems: 100% seller financed property. These provide you with the best of all worlds, low or zero cash requirements and fewer pitfalls. Upon owning..you can re-negotiate the interest, terms and as well as differ payments amicably