By James A. Gage
Here is a short sale tip
for you to think about before pursuing a deal with a
pre-foreclosure. When dealing with pre-foreclosures, and
deciding whether to do a short sale, find out up front if
the mortgage had PMI insurance! Why? If you were active in
real estate investing in the late 80s early 90s when we were
in a foreclosure cycle, but at a much lesser magnitude, most
mortgages had PMI insurance. This allowed lenders to take
back properties and turn down the majority of short sale
offers, and bring those properties into their REO inventory
- thus lessening there financial exposure.
What's different in this cycle we are experiencing is that
do to creative loans like 80/20s, the cushion is not there!
So it stands to reason, if you know how to navigate the
short sale process you will be able to get unbelievable
deals ( just make sure you have someone in the wings to buy
If you stumble upon a deal that has PMI insurance you may
want to move on to a property that doesn't have any! That
doesn't mean that it is impossible to negotiate a good deal;
just more complicated. If you would like to take your short
sale skills and tactics to the next level, please do not
hesitate to take a look at my investing tools at
http://www.JGage.com and click
on investing tools or product.
"You are who you are and where you are because of what you
have put into your mind."
For more information or pricing please do not hesitate to
call or e-mail. I can be reached at (508) 595-9567.