Short Sales- Long Term Strategy

[Mitch Kenney]

My wife and I were having a discussion the other day. She feels that we cannot count on short sales as a long term strategy (for the next 10 years) and I believe we can.

I believe we can because as long as the banks have the non-performing asset ratio and need to get a property off their books then they will always be willing to do a short sale.

I also believe that when the market picks back up and there are not as many foreclosures then there will be less competition, but homeowners will still be willing to work with real estate investors.

How does everyone feel about this?

[Nick J.]

As the case with most wives, they're right and we just have to smile and nod :)

In reality, I think she's right though. As it may seem that banks will still have non-performing assets for years to come, the same banks are also spending a lot of money in lobbying to increase rules, regulations and laws further preventing an investor from getting involved at all.

There are too many legal cases being carried out against scam artist and they're all going to jail which I completely agree with, however, we as investors are guilty by association even though we may fly straight.

With increasing internal policies tightening up from the lenders helped by lawmakers creating blanket laws that are easy to make considering the sammers out there, I don't think Short Sales will be a popular strategy, if a strategy at all in less than 10 years.