What has been a normal practice by foreclosure bail out investors is becoming more popular in today's everyday transactions...
SHORT SALES!
A short sale is an option often used to escape foreclosure and happens when a seller is selling his/her property for less than owed. The sale has to be approved by the lender and the outstanding debt will be forgiven by the lender. It is a process that takes longer than a normal transaction and involves some patience.
There was an article this Sunday in the NY Times, see link: The Virtues of Short Sales
The key I found to these types of transactions are constant communication w/lender, organization and timely response from your seller when documents are requested.
As usual, comments and suggestions are always welcomed...
Michael,
I just did one and my Buyers got a good deal and the process went well.....the Listing Agent did a great job.
Dan - It's a win-win-win, the seller gets to unload his property, buyer gets a good deal and the bank doesn't have to foreclose...
Lina - This year I was the listing agent on my first short sale (I always thought short sales were a myth) and it is taking a lot longer than I expected as well... I was unaware of the tax ramifications, thanx for the tip.