Investors refer to an individual or group of people who invest money into specific projects. All types of investment opportunities exist. People invest in stocks, bonds, small businesses, corporations, and real estate. Each type of investment comes with its own set of pros and cons. Some can be quite profitable while others take a large chunk out of your savings account.
Investors need to become educated about the market, product, business or individuals they are investing in. It would be rather foolish to invest your life savings into a project or person you know nothing about. Although you might possess beginner's luck and strike it rich your first time out, investing is a game that requires research, planning and a watchful eye over where your investment money is being spent.
Many people were financially crippled when the financial and real estate markets plummeted last year. The fallout still continues as investors attempt to pick up the pieces and determine how to recover from their losses.
One of the most affected groups was homeowners. Millions of people are now facing foreclosure because they invested in overpriced real estate purchased with subprime loans. Now, they are stuck with properties they cannot afford and forced to either abandon their home or file for bankruptcy protection.
The new bankruptcy laws enacted in 2005 have made filing bankruptcy considerably more difficult. The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) require debtors to repay a portion of their debt; forcing them to file for Chapter 13 and develop a repayment plan.
If debtors are unable to adhere to their repayment plan, creditors can petition the court to request the bankruptcy be dismissed. When this occurs, debtors fail out of bankruptcy and mortgage lenders can commence with foreclosure proceedings.
The only option left for distressed homeowners is to attempt to obtain short sale approval through their lender. Not all lenders offer the option of short selling, but those that do can help borrowers prevent foreclosure and incur less damage to their credit.
When banks engage in short sales they allow borrowers to sell their property for less than they owe on their mortgage loan. The process is rather complicated and time-consuming, but with patience and persistence borrower's can walk away from their home without owing additional money.
Real estate investors can be the saving grace with short sale transactions. Many mortgage lenders require borrowers to have a buyer in place before granting short sale approval. With today's shaky economy, many investors are purchasing distressed properties with cash. Doing so helps expedite the transaction and improves their chances of obtaining a successful outcome.
Individuals who are struggling to pay their mortgage payments and on the brink of foreclosure would be wise to seek out real estate investors who specialize in purchasing short sale properties. This one single act can improve borrowers' chance of obtaining short sale approval tenfold. Banks are more willing to work with a borrower who has a buyer with cash in hand than those who need to list their property and hope they find a qualified buyer in a short period of time.
Short sale real estate can be a good choice for newbie or seasoned investors. Many of these properties require repairs or renovations and can be purchased well below market value. Before jumping into this arena it is important to become educated about the process of short selling.
If you need to locate a real estate investor to purchase your property or want to learn how to become a successful investor, we invite you to browse our comprehensive investor article library. Not only will you learn valuable information, you will also discover additional resources to help you make informed decisions about buying and selling financial and real estate investments.
Last, but not least, I am currently accepting a limited number of participants in my unique short sale program. If your property fits the criteria, I will purchase your home and assist in negotiating with your lender to obtain short sale approval. Learn more about this limited-time offer by submitting information about your property via the "we buy houses" form. Upon receipt of your information, I will contact you to discuss available options.
Tagged: Distressed Properties, Fail Out of Foreclosure, Foreclosure, Investors, New Bankruptcy Laws, Real Estate Investors, Short Sale Approval, Short Sale Properties, Short Sale Real Estate, Short Sales, We Buy Houses
Published on July 15, 2009 at 02:20 AM