Short sale madness!!! (newbies PLEASE read!) - Posted by Ironlung

Posted by Ironlung on October 09, 2003 at 20:39:23:


Short sale madness!!! (newbies PLEASE read!) - Posted by Ironlung

Posted by Ironlung on October 09, 2003 at 13:37:10:


I would like to study the archives to find out more information on liens, various priorities, etc. I’ve been doing wholesale flip deals, but as I want to branch out to do different types of deals, I feel I should have a BETTER understanding BEFORE I delve off.

The reason I asked newbies to read this is, I, along with other posters, have noticed a surge of interest in short sale deals. This in and of itself is fine, IF the situation calls for it. I think too many times what happens is, someone reads a success story or two that involves a short sale. The reader then feels like that is method they should use for ANY deal they come across, without understanding the particulars of the deal.

Another thing I’ve noticed, and something I’m slightly guilty of, is a lack of understanding about liens/lien priority. I’ve seen, not only on this board, that we are ignorant of what goes on (i.e. what happens when 2nd forecloses; how does a tax lien affect other liens; what happens at auction, etc.)

I think we need to have a firmer understanding of this BEFORE we just shoot off phone calls to loss mitigation departments. I know that we are told we need to take action, but I think there is a limit to what we should be doing without a basic knowledge of what’s going on. In dealing with short sales, we are dealing with people who probably aren’t of the creative mindset, and if we don’t know what we’re doing, we certainly aren’t helping things anyway. I think this unfair to the rei “veterans” who DO know what they’re doing.

This will not only have a more positive affect on how others view creative real estate transactions, but with a firm, solid understanding, your/our confidence will soar! When you have that certain energy that comes from KNOWING what your talking about, people’s perception of you changes. I would bet that would lead to more deals being accepted.

Anyway, enough rambling. Can someone suggest some terms I can plug into the archive search that would help me study some more?