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Profiting in other ways

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Selling and refinancing are two of the quickest and most common ways to realize the profit from foreclosures, but other strategies are available:

 Negotiate a short sale. With a short sale, you persuade lenders to accept less than they’re owed, which increases equity in the property, providing you creative ways to help the distressed homeowners out of their jam. (See Chapter 15.)

 Lease the property to renters other than the previous homeowners. (See Chapter 18.)

 Lease the property back to its previous owners. (See Chapter 19.)

 Sell the property to the homeowners’ family members. (See Chapter 19.)

 Sell your position in the property to another lienholder. If you control the first mortgage, for example, you can sell it at a markup to a construction company that has a lien against the property so that the company can protect its interest in the property; otherwise, it risks losing all the money it’s owed. (See Chapter 19.)

Foreclosure Investing For Dummies

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