Hello All:
Here is your July real estate tip of the month. When dealing with pre-foreclosures, and deciding whether to do a short sale, find out up front if the mortgage had PMI insurance! Why? If you were active in real estate investing in the late 80s early 90s when we were in a foreclosure cycle, but at a much lesser magnitude, most mortgages hadPMI insurance. This allowed lenders to take back properties and turn down the majority of short sale offers, and bring those properties into their REO inventory - thus lessening there financial exposure.
What's different in this cycle we are experiencing is that do to creative loans like 80/20s, the cushion is not there! So it stands to reason, if you know how to navigate the short sale process you will be able to get unbelievable deals ( just make sure you have someone in the wings to buy it).
If you stumble upon a deal that has PMI insurance you may want to move on to a property that doesn't have any! That doesn't mean that it is impossible to negotiate a good deal; just more complicated. If you would like to take your short sale skills and tactics to the next level, please do not hesitate to take a look at my investing tools at http://www.JGage.com and click on investing tools or products.
Be well.
