Just thought I'd share some interesting information I learned during the holidays related to foreclosures and short sales.

A short sale is when a bank is willing to settle for less than the actual mortgage balance when the loan is going to be paid off at the closing. Most short sales are done on properties in which the owner is in foreclosure. However, I have known of a few short sales being closed on properties that were current and not in foreclosure. But the majority are either in foreclosure or the properties are worth less than the mortgage balance.

As many of you already know, banks that have approved a short sale do not allow assignments at the closing to another buyer. I recently received an email from a short sale Realtor/Investor, in which a bank will allow an assignment at the closing as long as it is all being disclosed and the process to acheive the assignment is approved by the bank. So as long as all of the steps are followed, the bank will approve the short sale assignment.

Also, some banks that are foreclosing on homeowners are now allowing these same homeowners that just lost their home to foreclosure to stay living in the home under a lease agreement! Isn't this unbeleivable? This shows how much banks do not want vacant houses.

Now is the time to "just ask" banks if they'll consider ___________.

You never know, they might approve your request!

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