I noticed in FR on the Preforeclosure list there are some properties that have some equity, can these potentially be short sale prospects or do all short sale prospects have to be upside down with negative equity? For example if a homeowner has 30-40% equity or any equity showing and a NOD has just recently been filed what is the strategy an investor would use to go after this property and talk with the homeowner?
A short sale is only a short sale if an owner is selling a property that is over encumbered by loans and the lender is agreeing to take a reduced amount and release the lien on a property. If someone is in default and has equity they could sell the property and it would be a traditional sale. There may be other factors like HOA liens, mechanics liens, IRS liens or other issues that are preventing the homeowner from selling the property and avoiding foreclosure. If you are interested in buying the property you should absolutely contact the homeowner.