short sale processing, short sale flip

To paraphrase Charles Dickens, it was the best of times for short sale processing, and it was the worst of times. It’s the best of times for short sale processing because prices are low, and there are many, many different properties available in a variety of price ranges. But it’s also the worst of times for short sale processing unless you’re well supplied with cash. All of the recent bank and brokerage failures will just make it hard for all but the best-qualified buyers to obtain credit. So it appears that many would be real-estate moguls will be thwarted in their desire to snap up some of the many cheap residential and commercial real estate deals that are currently flooding the market so they can make money with the short sale flip. Because of recent changes in real estate law, borrowers who get FHA money for their home loan are barred from turning around and doing a short sale flip. My guess is that a lot of the ‘for sale cheap’ properties that are out there will be snapped up by the so-called ‘vulture consortiums’, but let’s hope that there will also be plenty of homes left over to be resold as starter homes for young couples or families needing a bigger house.  It would be a shame if all of the cheap real estate got snapped up by speculators. Home values might never recover.