You're new at real estate investing and want to get a great buy on a house. Short sales seem to be the way to go, BUT ... When is the best time to buy? There are two things to keep in mind. First is timing. There are plenty of "Investors" waiting for the market to hit bottom. This is important if you're flipping houses but not so critical if you going to hold on to the property for 5 years or more. As we've discussed in an earlier posting, you won't know when we hit bottom until we already have. We will keep an eye on the trends and make sure that you're ready to go at a moments notice. Timing the market is tough enough. Another timing issue is mortgage rates. You could lose all the benefit of a low purchase price with a rise in the interest rate. Read "Did you miss the bottom of the market" dated 6/1/09. Second is crucial. "At what phase in the foreclosure process do I buy"? In the pre-forclosure and foreclosure phases, the bank will have formulas that govern how much they can accept for the property. They are a percentage of the Perceived Market Value of the home. At the end of the foreclosure phase is the auction. The amount the bank will accept is based on what is owed to the 1st mortgage holder plus any fees. Sometimes the condition of the property is a factor. When the property doesn't sell at the auction it becomes "Bank Owned". About 20% of all foreclosure properties end up as Bank Owned. This is the time to get the best DEAL on a home. The lender does NOT want to own a property. So "Let's Make A Deal". For more information about winning negotiations on short sales and to get access to lists of BANK OWNED properties go to www.BePicky.com scroll down to the yellow Foreclosure Box and click. To contact Tom Perry directly ShortSale@BePicky.com
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