About Short Sales

The first thing you should bear in mind is that real estate is always a wise investment, even when you’re trying to determine what makes a good investment condo. While it might seem that there’s an overabundance of available real estate now, remember that after a recession those properties will be in high demand again. And also the market will change again. It always does. And since there’s only so much usable real estate on the earth no matter what piece of property you want to buy, somebody will eventually wish to buy it from you when you are ready to sell. The key though, to determining what makes a good investment property, is not to think about making a profit once you sell the property, you need to make your profit when you buy it.

Buying investment property is different than buying a condominium for you and your family to live in for the next 20 or 30 or years. When you purchase that condominium you look for bound amenities – a backyard for the kids to play in, an additional bathroom and a guest bedroom, a den or family area, new appliances, etc.

However buying a house is more often than not an emotional decision. You find a home that your family likes first and then you worry about the monetary details. You walk into the place and say, “Yes! This is the one!” and THEN you look at the roof and the pipes under the sink and check the basement for leaks. You’re not the least bit concerned about how much you may be able to resell that house for because you plan to live there for years so you purchase it for the best price you can get and move in. You will worry about making a profit off of it if and when you decide to sell it.

But if you purchase investment property with your heart rather than your head you’re going to be in big trouble. With investment condos you can’t always count on somebody who makes even worse decisions than you to come along and buy that property at a high enough price for you to make a profit. So you need to buy it for a low enough price to begin with. There are several things you need to consider to determine what makes a good investment property.

One thing that you need to think about is how long you intend to keep the property. If you’re planning to sell it after 5 years or so you may only have to make a few minor repairs while you own it. And patching a roof or repairing some plumbing pipes are tax deductible. However if you intend to own the property for twenty years you already know that in that time you are going to most likely have to replace the roof, replace the plumbing and replace the appliances at least. None of which are tax deductible and if you would like to recoup that investment you’ll need to be able to get it out of the sale of the condos. Thus the length of time that you intend to own the property is just one of the many decisions you’ll have to make in order to determine what makes a good investment condos.

Want to find out more about Bank Owned Condominiums, then visit Scarlett Pierce’s site on how to choose the best REO Florida Condo for your needs.

With every passing day someone some where is looking for possible ways to save their home. There are a number of different ways to actually prevent foreclosure from taking place. As many as 6 million families are predicted to experience foreclosure in the next coming years. Recent studies project, 1 out of every 200 homes will be foreclosed on.

Two increasingly popular options that homeowners dealing with foreclosure consider are:

1. Short Sale
2. Home Loan Modification

The selling of a real estate property in which the sale proceeds fall short of the balance owed on the property’s loan is termed as a short sale. It usually takes place when a borrower is not able to pay the mortgage loan on the property and the lender thus finds that selling the property even at a loss is better than harassing the borrower. This often proves to be gainful to the borrower, because it negates foreclosure. It should be noted that this mutual agreement, however, does not necessarily release the borrower from his obligation to pay the remaining balance of the loan to the lender, and this remaining balance is often known as deficiency.

Home loan modification, on the other hand is an option for homeowners to lower their monthly mortgage payments by re-negotiating the conditions of the original loan. This is one of the best alternatives to short sale as it permits people in the midst of financial turmoil to reside in and keep their home. By securing a new payment arrangement through mortgage modification people can stop short sale and lenders still receive payments.

It is best for homeowners wanting modified terms to look for an experienced loan modification attorney, especially if the homeowner has not been able to make payments due to verifiable hardships.

One of the biggest mistakes that homeowners make is waiting too late to attempt to bargain a deal to save their home.

Special mortgage help programs such as Obama’s Loan Modification Plan are designed to enable borrowers in distress to pay back debts by borrowing from designated banks participating in programs developed by the US Treasury. This can be a win- win situation for all concerned.

To learn more information about restructuring your mortgage contact Janian and Associates for a free consultation.