Putting out homes on short sales to resell them later for a higher cash profit is now evident in the real estate market. Such activity is seen to be carried out by real estate brokers and title companies. The numerous blogs on real estate are now filled with articles that talk about how such practices are illegal and against realtor ethics. It is now time for real estate customers to know the truth and act accordingly!
As a customer, you must know the actual process of a short sale. To begin with, an investor will buy the house of a seller who has a heavy debt to repay. This sale is negotiated by the seller’s lender on influence from the investor. Once the seller’s lender approves the short sale, the investor will pay up the seller to acquire the house for a value mush lesser than its market value. The investor then resells the house at the actual market price and pays the lender only to earn a huge profit in the end. On the overview, such a short sale is similar to a regular sale except wherein the investor, instead of paying the sender’s lender in full, pays him at a discount for the house and then covers the remaining amount in fees.
Such short sales have got many realtors and title companies thinking that there must be a complete disclosure to the seller as well as lender about the property resale after the short sale. If this is not done, then they consider that the bank and actual seller are being defrauded. But legally speaking, someone can be defrauded only on owing a legal disclosure duty.
However during short sales, the disclosure to the seller is not an issue as he will not be receiving any money from the deal. As the seller’s lender will not approve of the seller making money in the deal, it is fair on the investor’s part to make a profit. As investors invest on property only to make profit, there is no necessity to disclose to the lender that the property would be resold. The investor however gets a copy of the short sake package from the investor. Hence there is no necessity for the investor to disclose to the lender that you have a buyer waiting to buy the short sales property for a higher resale value as it is very obvious!
For additional resources and information please visit the following sites.
Resource Links:
Bill Fields All Star Coaching Program: http://www.AllStarCoaching.net
GreatWest GMAC Search all MLS Listings: http://www.LocalHomeLink.com
GreatWest GMAC Consumer Buyer/Seller Blog: http://www.GreatWestBlog.com
T. Sami Siddiqui (Broker/ Owner) Buzz About Sacramento Blog: http://www.samisiddiquiblog.com
Brodie Stephens (Executive Vice President) One Stop Blog: http://www.brodiestephensblog.com
GreatWest Podcasts- Weekly Updates on new REO, Short Sale, Bank Owned Foreclosure Listings: http://www.HouseTalkOnline.com
GreatWest Videos: http://www.youtube.com/brodiestephens
Facebook Brodie Stephens Profile Page: http://www.facebook.com/brodiestephens
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Global Employee Relocation: http://www.employeerelocation.blogspot.com
Apply for a Loan: http://www.choice1funding.com
ActiveRain Blog Brodie: http://activerain.com/blogs/brodiestephens
ActiveRain Blog Company:http://activerain.com/blogs/greatwestgmac
Sacbee:http://www.sacbee.com
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Real Living:http://www.realliving.com
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