Hello All,
I heard about ‘short sales’ where you somehow buy a property that is about to foreclose from the bank for a small amount. You ineffect get the property severley under valued then sell it for what it’s really worth and make a bunch.
I heard about it from an American site so I don’t I don’t know if you can do it in Australia. I’m not even sure I get the whole concept.Does anyone know what I’m talking about?
Kosmic[blink]
GKD
I know what you’re talking about, but not really what is involved in foreclosures, except to say that here in the US it is a big business – for the people who supply the lists and info relating to the selling of these properties. Do a google search on ‘foreclosures’ and you will see a multitude of businesses selling info, or lists of properties. They are usually at a cost to subscribe to.
From what I have observed (which is not that much) it is not really likely to get a foreclosure very cheap. The lenders aren’t in the business of giving away their properties and taking huge losses on their loans. Also, there are many investors vying for these properties, so they force the prices up to around market value I suspect.
There is some provision for taking over the loans on these properties at cheap rates which makes them attractive. I don’t know how this works, but I have seen ads on tv almost every day advertising foreclosed properties for sale by the govt, with repayments at a round $200 per month.
The process of purchasing this way seems to be rather complicated and fraught with pitfalls for the inexperienced. Do a Wikipedia search on foreclosures for a brief explanation on how they work.
Maybe Chad (WorldChanger) can shed more light on this for you.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
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