Equity For A Short Sale
Does there basically have to be little to no equity in a property in order for a property to be a short sale candidate? Otherwise if there is equity it would a a good sub to and owner financing? Please let me know if I have this correct? Thanks
The generalities of your post are correct. Short sale usually depends on motivation of the bank - with less equity, there is usually more motivation as they won't have to go through all the costs to take the property back only not to be able to recaputure those costs. Though there are other motivation that can drive banks to short like high REO inventories, but that varies and it will depend on how the property you are dealing with matches up with their remaining inventory.
If there is a decent amount of equity to make it worth your time and effort, than subject to, L/O, or OWC are are good options to go with to control a property.
Thanks for your time and answer.
I should have reworded my answer to "that is a very good, basic understanding" Get much more complicated than that would be too complicated of an answer.
It basically boils down to the motivation of the banks to short sale a property changes, but what remains the same is they are responsible to the bank for their actions, so if you can justify the short sale price in THEIR MIND you have yourself a deal.