Perhaps you're not fully aware of what a Short Sale is. If that's the case... read on.

When a bank makes a loan on a house, they take a calculated risk that the borrower will default and the bank will have to take it back during a (in most states) lengthy and (in all states) expensive foreclosure. This concept is as old as dirt.

Where it get's interesting is when the home owner or an investor approaches the bank, before the foreclosure sale, and makes an offer that's less than the outstanding mortgage balance, and the bank accepts it. Most people have no idea this is even a possibility! They think that a bank would never take less than what their owed. The fact is, it happens all the time and creates a huge opportunity for those in the know.

So, why would a bank EVER take less than what they're owed? There are a number of reasons. One is that disposing of this "non-performing" asset and getting it off their books is a big one. The foreclosure process gets very costly with attorney's and the courts involved. These expenses, can be avoided. Then there's the cost of holding the house in the banks R.E.O. portfolio - taxes, insurance, etc. But that's just the beginning of where the expenses come in. The Fed puts huge restrictions and limitations on lenders, based on the aggregate value of the properties in their R.E.O. Portfolio. These restrictions and limitations choke the banks ability to lend to other new qualified borrowers which is where the bank makes it's money. They don't want to go through the costly process, and then they REALLY don't want the property in their R.E.O. portfolio.

Taking your offer, of something less than what's owed, is VERY attractive given these issues and is indeed the Path-Of-Least-Resistance.

Then you might ask, why is now such a good time to do this? There are a number of reasons. It's sort of a perfect storm of ingredients stewing in the pot. If you look at the number of adjustable rate loans that were originated over the last couple of years and the crazy low "teaser" rates most of them start at, you'll realize just how many of them are going to have interest rate increases. Rising market rates is a big part of that, but also consider that the low, low teaser rates would be going up even if market rates were not. Add the two together and watch out. It is predicted that hundreds of thousands of A.R.Ms are headed for default because as those rates increase, so do the payments, and many of the people that originated those loans could barely qualify at the low, low teaser rates let alone where they're headed.

Then you might ask, why are there so many of those loans out there? The reason is because we've just come off an unprecedented period of growth in property values resulting from many things including demand. People wanted in the game so badly, because of how much money everyone was making on their houses, they didn't concern themselves with the reality of a rising, potentially crippling payment. They figured, "no problem. I'll just sell it if I can't make the payment anymore. Heck, it'll be worth twice what I paid for it in a few months anyway!" Right. Right up until the bottom dropped out of the market and demand has fallen dramatically. Now, they can't sell. Or at least not easily or quickly.

Result: MASSIVE FORECLOSURES. The wave has already started and if I were in the banking or secondary mortgage market, I would be trembling in my boots. For us, this spells MASSIVE OPPORTUNITY!! (that is if you know how to do it correctly and in a way that helps your seller and creates a win-win-win transaction that everyone can be proud of)

Have I made enough of a case for you to be interested? If not, you need a check up from the neck up! Use one of the replay options below and learn how you can get in this game, now. Learn how you can put the menial part of it on autopilot too.

Ben Pargman is the nation's leading authority on Short Sales and has become the best there is at what he does. That makes him more than qualified to teach you all he can on the call. You can bet I hit him with some hard ball questions, making sure he delivers the goods too.

Best regards,

Cameron Dunlap