Why it might be better for investors to purchase during the short sale phase of foreclosure

Well I must say that I am a little shocked to find out that it costs the lender SOOO much to foreclose on a property.What am I talking about? Well when a lender starts the foreclosure process on a homeowner that has failed to make their payments the costs start accumulating for the lender. In a recent example with Countrywide we find that the lender incurred total sale expenses of $52,100 on a home with an approx value of $425k on the Westside of Redding.

So the point is this...if you purchase directly from the Lender in the BEGINING of the foreclosure process you stand to save money in the sense that the lender has not had to pay out ALL the expenses...yet...as more time goes by the expenses start accumulating to the point that the lender just doesn't want to talk "Short Sale" when they can take it to the Trustee's Sale and get back their money...That is assuming that they have the first of course!

Find them fast and find them early...that's the tip for the day.....

There is much less competition in the short sale purchase as many Realtor's don't like to do short sales because they are SO time consuming and sometimes don't work out (stubborn lender, or Stubborn Second holder etc).

Many times it is the second note holder that screws everything up....You would think that they would want take a couple thousand rather than ZERO AT THE SALE, but you would be surprised how many don't want to work with Realtor's who try and get them something....it's amazing!!

Regards,

Rick Goates

ECO Broker

Redding California

530-248-5627