There is certainly no shortage of potential short sale transactions in today’s real estate market. In fact, by some estimates, about 1 in 4 homes for sale is short-sale. That’s 25% of the market! However, with the advent of government programs designed to help homeowners conduct short sales smoothly and efficiently by working closely with their banks, the process is, for many investors who relied on creativity to close your deals and sell them to others. buyers, becoming more complicated instead of less.
Fortunately, not all properties are eligible for these programs, and these properties are much more likely to be in distress than your average primary residence. That’s how it is; I’m talking about vacation homes. Across the country, second homes are hitting the market in record numbers. In Minnesota, “the land of 10,000 lakes,” lakefront properties are succumbing to foreclosures in record numbers as homeowners struggle to negotiate short sales while analysts predict serious foreclosure on luxury properties. beachfront Florida, as vacation home owners in that area try to get out before the oil hits the shore or simply opt to get away. Second homes are not eligible for federal assistance or short sale programs of any kind in almost all cases, making them prime candidates for more traditional short sale negotiations. It’s not that lenders don’t want to make a deal; it’s just that with the heavy emphasis on HAMP and HAFA, most people don’t realize there are other short sale options available to them.
As an investor, you can help people whose finances and livelihoods are in jeopardy due to a second home they can no longer afford and cannot sell traditionally. These properties are a great source of potential clients for you and are often sold at higher values because they can be considered “luxury properties”. Make sure you don’t overlook this great potential source of deals when you’re researching leads.