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
Friday, June 03, 2005
make big money in the real estate business
If you want to make BIG money in the Real Estate Business you must know the 'truth' about preforeclosures; not only do you need to know exactly what preforeclosures are, but you also have to learn how and when to invest in preforeclosures.
As an investor you'll have to understand and be up-to-date with the foreclosure laws in the state where you live.
A foreclosure takes place when the owner (borrower) is unable to pay his lender the monthly mortgage payments; the lender will notify the borrower and let him know to find the money within a specified amount of time (varies in each state) otherwise the lender will be forced to repossess the home and begin the foreclosure procedure.
The borrower will have to leave his home; more than that, he will not be able to save his credit for other purchases.
The lender will try to sell the home at public auctions for a price lower than the actual market value of the house simply because he wants his money back.
Sometimes the house sells quickly, but often the lender is unable to sell the house and it will remain unoccupied.
Hope you get the BIG picture about foreclosures. Now, you must understand what a preforeclosure is.
A preforeclosure happens before the foreclosure procedure has taken place. In a preforeclosure, you contact the borrower yourself and let him know that you have a serious investor who is interested in buying the home from the borrower.
The borrower has the advantage of receiving money from the investor so he will not be forced to leave his home and his credit will not be ruined.
The lender receives the rest of his money (the borrower's mortgage) from your investor. Once you resell the house both you and your investor will remain with a NICE profit.
In a preforeclosure, ALL involved parties benefit: the lender, the borrower, you and the investor. It's a Win-Win situation.
Discover a simple, yet proven formula for building massive wealth through real estate foreclosures.
As an investor you'll have to understand and be up-to-date with the foreclosure laws in the state where you live.
A foreclosure takes place when the owner (borrower) is unable to pay his lender the monthly mortgage payments; the lender will notify the borrower and let him know to find the money within a specified amount of time (varies in each state) otherwise the lender will be forced to repossess the home and begin the foreclosure procedure.
The borrower will have to leave his home; more than that, he will not be able to save his credit for other purchases.
The lender will try to sell the home at public auctions for a price lower than the actual market value of the house simply because he wants his money back.
Sometimes the house sells quickly, but often the lender is unable to sell the house and it will remain unoccupied.
Hope you get the BIG picture about foreclosures. Now, you must understand what a preforeclosure is.
A preforeclosure happens before the foreclosure procedure has taken place. In a preforeclosure, you contact the borrower yourself and let him know that you have a serious investor who is interested in buying the home from the borrower.
The borrower has the advantage of receiving money from the investor so he will not be forced to leave his home and his credit will not be ruined.
The lender receives the rest of his money (the borrower's mortgage) from your investor. Once you resell the house both you and your investor will remain with a NICE profit.
In a preforeclosure, ALL involved parties benefit: the lender, the borrower, you and the investor. It's a Win-Win situation.
Discover a simple, yet proven formula for building massive wealth through real estate foreclosures.
Thursday, June 02, 2005
bank foreclosure list
Many people ask me where the best place is to locate a list of properties in foreclosure. While there are several free ways to uncover these lists, I still prefer the services of companies like Realty Trac that offer a huge national database of foreclosures for a nominal monthly fee. It saves me incredible time and money by having a subscription to membership sites.
However, if you're just getting started and are looking for free lists, then contact the banks in your area and simply ask them if they have a website for their bank owned properties. Many of them will direct you to exactly where you can find their list of foreclosed homes.
However, if you're just getting started and are looking for free lists, then contact the banks in your area and simply ask them if they have a website for their bank owned properties. Many of them will direct you to exactly where you can find their list of foreclosed homes.
property investments
When it comes to real estate property investments, single-family homes are likely the best choice for first-time property investors.
As perhaps the most widely available form of housing, the single-family home is most coveted by buyers and renters. As such, the investment is easier to finance, refinance, manage and liquidate, when compared with larger, multi-family property investments. But residential property investments require up-front cash, financial feeding, management and maintenance -- especially during the early years.
Unless your down payment is at least 25 percent or more, the rent you can charge usually won't begin providing positive cash flow for several years after your purchase.
Buying a property that is below market value, as in the case of a foreclosure, you can usually get positive cash flow right from the start.
For more information on foreclosures try:
http://www.massiveforeclosureprofits.com
As perhaps the most widely available form of housing, the single-family home is most coveted by buyers and renters. As such, the investment is easier to finance, refinance, manage and liquidate, when compared with larger, multi-family property investments. But residential property investments require up-front cash, financial feeding, management and maintenance -- especially during the early years.
Unless your down payment is at least 25 percent or more, the rent you can charge usually won't begin providing positive cash flow for several years after your purchase.
Buying a property that is below market value, as in the case of a foreclosure, you can usually get positive cash flow right from the start.
For more information on foreclosures try:
http://www.massiveforeclosureprofits.com
Tuesday, May 31, 2005
Deleware Real Estate Foreclosure Law
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: No
Primary Security Instruments: Mortgage
Timeline: Typically 90 days
Right of Redemption: No
Deficiency Judgments Allowed: No
In Delaware, lenders may foreclose on a mortgage in default by using the judicial foreclosure process. Judicial ForeclosureLenders in Delaware are given a number of options in which they may pursue judicial foreclosure, but the most commonly used procedure is the Scire Facias. This proceeding is quite different from other judicial foreclosures because instead of the lender having to prove the borrower is in default of the mortgage, the borrower has to prove he isn't. Although the suit to obtain an order for foreclosure is filed by the lender, the borrower must appear in court within twenty (20) days of being served a writ to provide evidence as to why the foreclosure should not take place. Unless the court is satisfied with the borrowers explanation and evidence, they will authorize a foreclosure sale. Said sale must be conducted by the sheriff and held either at the courthouse or at the property itself at least fourteen (14) days after the notice of sale is posted on the property and in other public places throughout the county in which it is located. The buyer has no right of redemption once the court has confirmed the sale.
http://www.massiveforeclosureprofits.com
Non-Judicial Foreclosure Available: No
Primary Security Instruments: Mortgage
Timeline: Typically 90 days
Right of Redemption: No
Deficiency Judgments Allowed: No
In Delaware, lenders may foreclose on a mortgage in default by using the judicial foreclosure process. Judicial ForeclosureLenders in Delaware are given a number of options in which they may pursue judicial foreclosure, but the most commonly used procedure is the Scire Facias. This proceeding is quite different from other judicial foreclosures because instead of the lender having to prove the borrower is in default of the mortgage, the borrower has to prove he isn't. Although the suit to obtain an order for foreclosure is filed by the lender, the borrower must appear in court within twenty (20) days of being served a writ to provide evidence as to why the foreclosure should not take place. Unless the court is satisfied with the borrowers explanation and evidence, they will authorize a foreclosure sale. Said sale must be conducted by the sheriff and held either at the courthouse or at the property itself at least fourteen (14) days after the notice of sale is posted on the property and in other public places throughout the county in which it is located. The buyer has no right of redemption once the court has confirmed the sale.
http://www.massiveforeclosureprofits.com
