A short sale of a property is something that a bank can request if your home is headed toward foreclosure. It’s a practical way for you to avoid foreclosure, and it can save the bank some money. Without the right guidance, navigating a short sale can be extremely difficult. It’s also a very lengthy process. Many short sales can take over one full year in order to be approved. For someone looking to invest in real estate, this is something that many avoid because of its complications. Luckily, there are some ways of avoiding a short sale of a property. While they can’t always be avoided, there are some things that can be tried first.
Avoid the Short Sale of a Property: Modify Your Loan
According to the Cunningham Team, a short sale usually happens when the property is headed toward foreclosure. Modification of a loan can sometimes make it easier for a property owner to pay their mortgage. These modifications and restructurings often include a longer payment plan, different interest rates, combining debt or securing an additional loan for repayment. Some banks will even switch the mortgage loan to another lender that is willing to take on the loan issues.
Avoid the Short Sale of a Property: Rent the Property
A really easy way to make money and avoid a short sale is to rent the property to someone who is reliable. If a steady stream of income is coming in, this money can be used to catch up on the loan amount. The key is finding someone who will occupy the property immediately. They must be willing to stay for a bit, and you need to be able to rely on the person who is going to be paying you monthly.
Consider Selling With Owner Financing
If all else fails, try selling the house by using owner financing. According to Nav, selling a house with owner financing just means that instead of having the buyer pay a bank for the house, they pay the seller. People do this all the time with lease option purchases and lease option sales. Just make sure that you get some help from a lawyer to make a good contract so you can make sure you can depend on the buyer to pay you so you can pay your mortgage.
Deciding to sell your real estate property through the process of a short sale can be a very practical and convenient option for a real estate investor or a homeowner who is trying to avoid foreclosure of a home. The process of a short sale may also be avoided through a loan modification or renting out the property.
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The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agents, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.
Our SWFL REIA General Meeting is held in Fort Myers where we provide education on hot topics in investing and an opportunity to enjoy the camaraderie of your fellow investors. You’ll get a chance to ask for advice from successful real estate professionals and even make a few deals on your latest projects.
To become a member, anyone can register as an individual, a couple, or a corporation. Being a member opens the doors for endless networking opportunities, advice from members with decades of experience, new ideas from entrepreneurs, camaraderie with those just beginning, and deals and contracts done in the meeting room. For those interested in Cape Coral rental property investment and/or Fort Myers rental property investment, SWFL REIA will be able to provide a network to help launch a successful investment career.
The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.
We meet twice a month.
One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that it does not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.
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