SHORT SALES (Pre-Foreclosures)
Short Sales are properties about to go into foreclosure. The mortgage company is allowing the property to be sold for less than whats owed on the mortgage. This keeps yet another foreclosure from being on their books. The seller makes no money and pays no commissions. Typically the sale prices allowed are from 10%-20% below comparable market value. There is almost always multiple offers on short sales. The process from listing to closing can take many months. Most Buyers get impatient and drop out of the bidding after a few months. About 80% of short sales actually close. There is no guarantee of buying a short sale... the mortgage company can change their mind at any time. Great for cash investors!