what is a short sale

Do you have any information for Realestate in Ontario, Canada?

What is the price they are asking?

where is it located ?

A short sale is just what it sayes. You are reducing the sale price with the bank to make it more affordable. It is a main tool in getting the price to a marketable range.In most cases it is a lot of paper work and time with the bank.If a home was purcased for 500,000 and that is what is owed but the market is only supporting a 450,000 value it must be short saled.In order to sell the home and make a profit you must calculate all costs.Such as cost of funds legal fees convance tax capital gains holding and repair cost and such.Lats just say you need to convince the bank it is only worth about 365,000 to make a profit, but it can be done.This must be done with any 1st 2nd and so on lones on the property.

If all the pieces fall in place are you the owner in the end and then you try and resale?
Obiviously at a good price.

What on earth is hard money, I love this but I am new and I need to absorb everything or I get stuck

Hard money is considered cash or "real money". If you are buying a house for $100k and you put down $20k down, and finance the other $80k, you are using $20k "hard money" and $80k "soft money".

A hard money loan is also called an asset based loan. Typically 65-70% of the value. The lender loans based on the strength of the property, NOT the strength of the borrower. It's typically short term and expensive (both in terms of points and interest rate). It is most often used by rehabbers who then either sell the property or re-finance into longer term (and more attractive financing).

Short simply means -- the property is not selling for the total amount of the current outstanding mortgage or first trust (or combined 1st & 2nd or 3rd) -- the total amount owed on the property. The owner, in selling, would normally have to come to the settlement (escrow) table with cash money to make up the difference to their current lender between what the house sold for and what is owed to the their lender. In other words -- the seller is "short" on proceeds. Many banks are willing to work with owners on this just to get the house out of their inventory. Schedule a brief time with the real estate attorney (settlement officer/escrow officer) who understands short sales and can advise you on the nuances so that you don't get caught in a bad place -- the one you've selected to be on your team. The laws do vary from state to state. It can be done, and it's being done more and more in this market. Talk to the DG advisors about how to handle -- they won't steer you wrong, and it's important for you to have it down step by step. Then -- GO FOR IT !

A foreclosure is just that -- the owners are unable to pay, the bank has gone through the legal process and has "reposessed" the property. It is now a REO. Increasingly, banks are also selling these REO houses in their inventory short -- for less than is owed on them -- just to get them out of their inventory.

Short sales are offered usually 1-2 months prior to auction. This exit strategy works well with property that is upside down. Meaning more is owed on the property than what the comps are now saying it is worth. The first thing to do is to evaluate the property, using new comps and all the costs involved. Write an offer where the owner needs to agree (if the owner still lives there). But the final offer has to be approved by the lender, since he is the one that will take less than what is owned on the property. With that you need to provide information to him along with the contract proving more is owned that what the home is worth.

This is true. With the large amount of inventory available there are banks that are accepting short sales before the notice of foreclosure has been given. That means you could work a short sale on a property where the seller has been late by even 30 days or less. There are companies on the internet that offer to help you to do this, again before the foreclosure notice, and for a hefty fee.