In today’s market, finding foreclosure homes is not difficult. Foreclosure homes in Cochin can be incredible business investments, especially if one is capable to find a house below market value then gain immediate equity upon achievement of the purchase.
Short sales do not present as much risk as other options; however, less return is gained. When a bank consents that the home owner may sell the home for a lesser amount than is owed to the bank by way of avoiding a foreclosure, the outcome is a short sale. In other words, lien holders agree to take a short payoff. One pessimistic feature of this kind of sale includes that buyers will have to tolerate waiting, and this sort of sale is usually not concluded for many months. Additionally, there is a likelihood the bank may not give approval in the end. Estimates show that one out of three short sales close. Those that do not close typically end up in auction.
At public trustee or sheriff auctions, the bank bids less than is owed. This allows the depositor to obtain a property at far less than market value, leading to high profit margins. These sales typically can be flipped at market value. Buyers have to be able to purchase in cash, having certified funds on hand for the entire amount of the property. The day before the auction, bids by the mortgage holder are posted. This allows a short time frame to study the property.