foreclosures and short sales

Increase Your ROI with Foreclosed Homes and Short Sales in Pigeon Forge, TN and Gatlinburg, TN

Foreclosures and short sales of investment properties not only represent great opportunities for bargain hunters, but investment real estate profitability can be greatly enhanced by prudent investment in foreclosure and short sale properties.

The utilization of foreclosures and short sales is one of the best ways to invest in Tennessee real estate for both new and experienced property investors. Foreclosure homes and short sales in Pigeon Forge, TN or Gatlinburg, TN also provide a sustainable source of revenue as rental properties due to the hospitality and tourism business that the area thrives on.

A Pigeon Forge Tennessee foreclosure purchase opportunity of an income producing rental home is shown below. This investment pro forma statement is made more reliable by the strength of actual property earnings and actual foreclosure sale pricing being incorporated into the figures. It is easy to see that investment properties with proven track records of rental earnings are serious opportunities for strong financial returns under short sale and foreclosure pricing.

Eden Crest Properties is the leader is selecting investment properties that have either proven track records of high rental earnings, or show the potential to earn well, based on our years of experience in successful rental management operations. Since we know our guests’ preferences in rental homes first hand, we can easily pass that knowledge on to our real estate investment clients.

Don’t forget to let the investment real estate experts at Eden Crest show you how to roll your IRA funds into these investment properties to gain the best advantages of both your IRA tax benefits and foreclosure and short sale properties.

Pro-Forma
One Bedroom with pool
Gross Rental Revenue	$66,626
Purchase	$194,500
Percent Down	20%
Initial Out of Pocket Investment	$38,900
Amount Financed	$155,600
Annualized Expenses	$18,828
Projected Gross Income To Owner	$39,976
note: projected rental income is based on past performance, but is not guaranteed
Approximate Annual Appreciation of 6%	$11,670
Tax Deduction
Tax Deduction	$8,200
Tax Bracket	30%
Net Tax Benefit	$2,460
Summary
Rental Income	$39,976
Net Tax Benefit	$2,460
Annual Expenses	($18,828)

Net To Owner	$23,608
*I am not a tax attorney or practicing CPA. You should seek their professional advice on your own. This information is based on information supplied to us by individuals in the rental business.

Short Sale FAQ

Mortgage holders and servicers often work with their customers through these difficult economic times to reach an acceptable resolution. One possible option for a homeowner is a short sale, which is often misunderstood. These FAQs can help you to understand what a short sale is, and how it can work for you.

Click any question to view the answer.

What is a short sale?

A short sale may allow eligible customers to sell their home for less than the amount owed on the first mortgage. In doing so, customers may be released from their obligation to pay back the first mortgage under its original terms.

Does a short sale settle the entire debt?

Customers should consult their tax advisor and a legal advisor about the implications of a short sale. A “deficiency balance” may result, which may still need to be paid when or after the home is sold.

How might a short sale help a homeowner?

A short sale may help customers avoid a foreclosure sale. The mortgage lender or servicer may consider allowing a short sale even if the foreclosure process has already begun.

How does someone get started?

Customers facing mortgage payment difficulties should contact their lender or servicer to discuss all possible options. It is important to determine if a mortgage qualifies for a short sale, and if it is the right course of action. Any investors, the mortgage insurer, and any secondary lien holders must also approve a short sale.

What happens next?

If the mortgage qualifies and is approved for a short sale, the lender or servicer works with the customer and their Realtor to determine an acceptable sales price and allowable time frame to sell the home. Make sure your realtor has experience and/or accreditation specifically in handling short sales. Eden Crest professional realtors have that experience, and are certified SFR (Short Sales & Foreclosure Resource).

How might a short sale help a home buyer?

A short sale situation is a more amenable way of providing a way out from under a mortgage for a homeowner. As a result, the current homeowner is still in control of their property, and has a vested interested in making sure it is in the best condition possible and answering any questions you might have. While deep discounts are possible with a short sale, these homes usually have not suffered deterioration from prolonged vacancy.

Get more answers… Contact the Eden Crest team of professionals, or phone (888) 231-6607 for more information.

(Segments of these FAQs are from On the House, a Wells Fargo Home Mortgage Newsletter)