Short Sale
Hi,can any tell me what's the difference between
Short sale & Buying at a discount(birdog/investor)
thanks
confused 
Hi,can any tell me what's the difference between
Short sale & Buying at a discount(birdog/investor)
thanks
confused
A short sale is when a lender agrees to accept a lesser payoff amount of the actual loan balance...One must provide valid reasons to their offer to justify the discounted payoff which is usually through repairs that are needed to said property. Along with a list of these repairs it is beneficial to include estimates from at least three different contractors or an appraisal showing the value of that property "as is". Also include pictures.
Buying at a dscount (birddog/investor) is just that, buying property anywhere from 30%-65% below FMV/fair market value...This is where most investors make their profit.
I hope this helps.
A short pay is when the property is valued at less than what is owed on it. Example a property is appraised at $40,000 but there is a mortgage for $60,000 on the property. As you can tell the mortgage company is already at a lost because the most they will recoup from the property if they take possession through a foreclosure is $40,000. Of course, that’s not actually true either because if they have any outstanding taxes that will have to be paid and deducted from the appraised value as well as attorney expenses from the foreclosure sale. All of these things are factors in determining the exact amount a lender will receive. It is all used in calculating the amount they are willing to accept as a Short pay. I hope that helps!
Thanks a bunch www.you.guys.I had no idea of the difference ,now i see.[ Edited by WANNABINVESTOR on Date 12/22/2004 ]