From David Petrovich at Active Rain comes a story on "The Perfect Storm..." :
There looms a perfect storm on the horizon, a storm that will highlight the need for realty professionals to fully understand the construct of successful preforeclosure short sale transactions.
scheduled expoding ARM resets (subprime 80/20s, ARMs, interest only, etc.)
the increase in minimum monthly credit card payments, and not so
coincidentally, changes in bankruptcy law, and
a correcting/deteriorating real estate market
Now that the real estate market has cooled, and mortgage lenders are tightening up lending criteria, fewer delinquent borrowers will have the needed equity to refinance their loan, or to sell their home to avoid forecloure.
What is a Short Sale?Just about everyone investigating the various methods or techniques of speculative real estate investment have heard or read about preforeclosure short sales.
They've heard or read about ‘short sale secrets' which purportedly unlock the door to mortgage lenders' huge giveaways resulting in the monitization of previously unrealized profits and untold riches.....
So what is this thing called a short sale?
Hold on a second! I have been told by realtors (Active Rain is a realtors website) that its a great time to buy? Why would I buy when there is a perfect storm coming? Wouldn't that imply that I should wait until the storm is over? The NAR has a $40 million ad campaign begging people to buy a home right now and yet their own members think its a perfect storm?