Real Estate Foreclosure Investing
Investing In Real Estate Foreclosures
In the wake of the sub prime mortgage mess, is it still possible to make
money investing in real estate???? The answer is an emphatic YES. Investing with
real estate
foreclosures. But you must be careful. With buyers getting into their home with
no money down, there is little profit in some homes so you must do your home
work before investing in real estate foreclosures.
Inflated real estate prices and lenders willing to extend credit to anyone
has led to this foreclosure crises. With home prices, in many areas, less than the loan
amounts leaving a tremendous flood of foreclosure properties in their wake.
Investing in a foreclosure property has become much more difficult. Foreclosure rates are already weakening our economy. If lenders reposes,
borrowers lose everything.
There is a new program out there for owners facing
foreclosure. It's
called You Walk Away. All of a sudden people are having to choose between
paying their mortgage or paying their credit card bills, gas and food.
Losing their property to foreclosure is all to real.
More people are using their credit cards to finance their day to day living as
prices keep going up and up. You Walk Away is offering a solution (sort of) to
their problems. Helping people walk away from their mortgages they can no longer
afford. Showing people how to live in their house for free before their bank
forecloses on their real estate. Real estate owners are taking a big hit in their credit
rating, but at least now able to pay on their other debt, they are left little
other choice but to walk away from their property and start over. Investing in real estate foreclosure
is where you come in.
A knowledgeable real estate foreclosure investor can help troubled
property owners and help themselves as
well. If you want to buy a home to live in, rent or re-sell, you should look
into investing in foreclosure real estate.
To get instant equity you must be investing in real estate well below market value and the
best way to do that is investing in foreclosure property. To raise the value of
the property, paint and repair for instant equity. Make it look the way your home
does. Your goal is investing in real estate foreclosure property 20-30% below market value.
Investing in a $100,000 piece of property for $70,000-$80,000 etc. This make for greater profits at
resale or for rental property.
Word on the street is there are more real estate foreclosure properties than buyers so
investing in a 'good deal' should be easy.
There are drawbacks to investing at foreclosure auctions. The most obvious one
is coming up with the cash. Don't bring you credit card, they are not accepted. So
if your looking at investing in real estate worth $100,000 and a mortgage due of $70,000 guess what
you have to have in your hot little hand. And that's cash or cashiers check.
Another problem is seeing the interior of the property. The distressed owners
will not give you a tour of their home.
The good thing (if you can swing the cash) about investing at the
foreclosure auction is that
any junior liens (home equity loans, etc) are wiped out. Income tax liens and
unpaid property taxes are not wiped out, do your research.
All foreclosure real estate goes through four stages.
1. In the beginning the borrowers, because of financial difficulties stop
making payments.
2. The bank then files legal notices. The borrower then has so many days to
pay, sell, or re-negotiate with the lender. The foreclosure process has
started.
3. When that fails it's auction investing time.
4. If no one bids on the amount owed the real estate goes back to the
lender and foreclosure is complete..
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