What is a Short Sale System?

Article Details
  • Written By: Jim B.
  • Edited By: M. C. Hughes
  • Last Modified Date: 09 February 2020
  • Copyright Protected:
    Conjecture Corporation
  • Print this Article

A short sale system is a series of strategic tips designed to help real estate investors benefit from the process of short sales. These sales occurs when a homeowner who owes a great deal on his mortgage sells the home at a discount to avoid the possibility of foreclosure. It is common for a short sale system to also advise investors on the practice of "flipping" houses, which occurs when a property-buyer invests to upgrade the property and then sells it at a premium. Many systems devoted to short sales are advertised on the internet, although some may be scams out to fleece investors of their money.

In difficult economic times, homeowners may have a hard time keeping up on their mortgage payments, which repay the loans they took out to buy their homes. When this occurs, the possibility of foreclosure on these homes becomes very real. A short sale allows a homeowner to sell a property for less than he owes on the mortgage, while the lender forgives the rest of the debt to avoid the difficulties associated with selling a foreclosed home. Real estate investors might seek out a short sale system to benefit from discounted home prices.


The most common way that a short sale system benefits real estate investors is that it reveals opportunities to them. It does this by providing extensive listings on homes and other properties that might be available for short sales. Short sale systems also show investors how to make the right offers that can be agreeable to both the home sellers and the mortgage lenders.

Once these short sales are made, an effective short sale system will show real estate investors how to turn these investments into profits. By investing more money into these properties, the new owners can increase the value of the homes they have purchased. They can then turn around and "flip" these houses, which is another way of saying that they are selling them for much more than they bought them.

Unfortunately, many companies and websites touting foolproof ways of making profits from short sales may actually be attempting to exploit gullible real estate investors. These establishments promise huge returns for investors, but they only offer their services for significant fees. There is no guarantee, however, that any short sale system can produce positive results, since every form of investment carries with it some level of risk. Since this is the case, investors should do proper research before paying money for access to any system.



Discuss this Article

Post your comments

Post Anonymously


forgot password?