Buying a Short Sale or Foreclosure Can Be A Great Investment

You can find short sale, pre-foreclosure, foreclosure and bank owned properties for a substantial discount since most lenders are eager to continue to get paid back the money that they have loaned out. Some lenders may also offer interesting, favorable financing terms. In a short sale, the seller plays an active role in the process and you will have their cooperation so most likely won't need to evict them upon taking possession of the home which sometimes is not the case with a foreclosure.

The short sale buyer must be well qualified. The bank will require the buyer to provide a pre-qualification letter with the submission package and in some cases may require a pre-approval letter. Proving to the asset managers within the loss mitigation department that the buyer is serious and capable sends a positive message and will strengthen your negotiating position.