Quote:
Originally Posted by look 171
From what i understand, you almost have to be the first one to make the offer when it comes on the market. They are looking at your qualification and if its an all cash offer. Then they go from there. There are a lot of BS who you know going on there, I feel. I have lost a few of them that way. All our offers were over the asking.
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This is not quite correct. You as the buyer are responsible for getting your financing secured through a lender. The owner of the Note in default doesnt care about the buyer's qualifications because you either have your financing or you dont. The owner of the Note will receive their cash from whoever you secured your financing at closing.
Many defaulted Notes have certain restrictions placed on the Note by the investor or owner of the Note. For example, there are restrictions limiting short sales to family members, requiring that the property be listed by a real estate agent for 90 days prior to short sale approval etc...
Always ask for proof that the owner/holder of the Note has "approved" a short sale and ask for it in writing. This written document exists and I would ask to see it before I made an offer and wasted my time.
When you see a house listed and it mentions a short sale, that does not always mean that a short sale was approved because as i said above, the seller may be required to list the property for x amount of days before the owner of the Note will even authorize the possibility of doing a short sale.
Obviously most of the precautions and restrictions are to limit sellers committing fraud