Los Angeles Real Estate Investors say, those who have gone through a short sale might be eligible to purchase another investment property immediately, at least in certain situations.
This means they can apply and borrow money for their next investment.
Although, real estate investors who experiences a foreclosure have to wait at least five years before they can buy other investment properties, or even obtain a second mortgage.
To also add, foreclosures stay on their credit report for seven years.
Los Angeles Real Estate Investors Selling vs. Saving
Los Angeles Real Estate Investors say, many in the business opt for a short sale over a foreclosure any day.
This is because it gives them the opportunity to market their investment property so that they’ll get the best and highest offer.
Looking at the nature of the short sale vs. foreclosure process, foreclosures usually sell for significantly less because the bank is trying to liquidate the asset as fast as possible.
This means that the deficiency balance could be a bit higher.
Los Angeles Real Estate Investors say, within the context of a short sale transaction, there may be entitlement to certain relocation incentives.
Lenders at times offer money to real estate investors or homeowners after a short sale, this is to help them move in.
While in the process of of a short sale, real estate investors are able to live in the home rent-free, this saves them a bit of money.
Benefits like this are not offered in the foreclosure process.
Real Estate Buyers
Los Angeles Real Estate Investors say, buying real estate properties through both short sales and foreclosures can be beneficial, both of these options are below the market value buying prices.
You can gain access to information about the real estate properties quite easily
Yet again, many real estate buyers would rather go for a short sale.
The first negotiation tactic for a short sale is over the purchase price with the real estate seller.
They would then seek approval from the lender.
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