Saturday, June 04, 2005
Pro's and Con's of Buying Real Estate Foreclosures
The mortgage foreclosure process creates three real estate investing opportunities: the "Default/Pre-Foreclosure" phase, the "Auction/Sale" phase and the "REO" phase.
Buying pre-foreclosures involves working directly with the homeowner. The objective is to create a winning scenario for all parties.
To accomplish a successful preforeclosure purchase, most real estate investors would recommend you follow at least these steps:
1. locate defaulting borrowers
2. determine which homes have equity
3. complete a home inspection
4. determine what the homeowner's needs are and how you can accomodate them
5. determine a fair market value based on local comparable sales
Some Pros to Preforeclosures are:
If done correctly this is a great real estate investment opportunity because you can buy for discounts of 20% to 50% of fair market value. You often can structure a low down payment loan. Due to the sellers situation you can be creative with your purchase agreements.
Some Cons to Preforeclosure are:
1. Finding and contacting the property owner is often difficult.
2.Competition can be significant.
3. Locating the county courthouse records can be tiring.
For more info visit: http://www.massiveforeclosureprofits.com
Buying pre-foreclosures involves working directly with the homeowner. The objective is to create a winning scenario for all parties.
To accomplish a successful preforeclosure purchase, most real estate investors would recommend you follow at least these steps:
1. locate defaulting borrowers
2. determine which homes have equity
3. complete a home inspection
4. determine what the homeowner's needs are and how you can accomodate them
5. determine a fair market value based on local comparable sales
Some Pros to Preforeclosures are:
If done correctly this is a great real estate investment opportunity because you can buy for discounts of 20% to 50% of fair market value. You often can structure a low down payment loan. Due to the sellers situation you can be creative with your purchase agreements.
Some Cons to Preforeclosure are:
1. Finding and contacting the property owner is often difficult.
2.Competition can be significant.
3. Locating the county courthouse records can be tiring.
For more info visit: http://www.massiveforeclosureprofits.com
