short sale investment

[semtex]

I am invited to invest on a short sale property.
389 Mark Tree Rd, Setauket, NY 11733 - Zillow

I have no clue this kind of stuff. Could someone give me a quick education?

Thanks ahead,
Semtex

 

[REWahoo]

I am invited to invest on a short sale property.
389 Mark Tree Rd, Setauket, NY 11733 - Zillow

I have no clue this kind of stuff. Could someone give me a quick education?

Sure.

If you don't understand it and need a "quick education" to make an investment decision, odds are you're going to lose your shirt.

 

[semtex]

Not yet,

One of my friends got this and he would like me to join. Very hesitate since as said I have no clue, but it does not hurt to know the tricks. I know I have a wisedom pool here.

 

[brewer12345]

What is the plan/exit strategy? Will this become a rental, flip, something else?

 

[calmloki]

I've avoided short sales as they seem to lock in the buyer with an offer for an indeterminate time, while the bank being urged to accept less than they are owed can take as long as they wish to accept and may change their minds at the ultimate instant.

YMMV. When I want to buy something I want it to happen.

 

[Martha]

It looks like REO property, already owned by the lender, so a quick decision from the lender is possible with a deadline placed in any purchase offer.

Like Brewer says, you need to know what the plan is for the property and why they think the plan will work.

 

[semtex]

What is the plan/exit strategy? Will this become a rental, flip, something else?

rental I guess. My friend is a local. From his view, the price is ok, but I do not know whether this kind of house is clean or hidden trap behind.

 

[JOHNNIE36]

We were just in the market recently looking to buy another house. Looked for and considered foreclosed homes and short sales. Short sales were new to me but found out that if may take a long time to close because everything is up to the mortgage company. There is no definite end to the process as they can change their mind in an instant. In fact if you are looking to get the income tax rebate of $8000 don't consider a short sale because the contract has to be entered into by 4-30-10 and closed by 6-30-10. You could never get a mortgage company to stick to the 6-30-10 closing.

 

[Martha]

We were just in the market recently looking to buy another house. Looked for and considered foreclosed homes and short sales. Short sales were new to me but found out that if may take a long time to close because everything is up to the mortgage company. There is no definite end to the process as they can change their mind in an instant. In fact if you are looking to get the income tax rebate of $8000 don't consider a short sale because the contract has to be entered into by 4-30-10 and closed by 6-30-10. You could never get a mortgage company to stick to the 6-30-10 closing.

You could have in the purchase offer that if it does not close by 6/30 the price goes down by $8000.