The days of the "foreclosure fairy" dropping deals down from the
courthouse steps may be over. But, according to savvy real estate
investors, there are still thousands of deals out there. The trick is
knowing where and how to find them - before the competition beats you to
it.
It is during the period called PRE-foreclosure that real estate investors can strike gold. Pre-foreclosure refers to the time during the foreclosure process when a lender files notice of default in official public records, and the date the property is scheduled to be sold at a public foreclosures auction or trustee's sale.
Many homeowners who are facing foreclosure have been struggling
financially for as long as a year before they throw in the towel. And, while some people feel uncomfortable - as if they are taking advantage of someone else's misfortune, the reality is quite the opposite. Legal experts say that, fraudsters have moved into the foreclosure business and are positioning themselves as "rescuers," They are stealing large numbers of homes and fleecing owners out of money across the country. Honest investors who know how to buy a property in foreclosure can literally help a homeowner save his credit and his dignity. Many homeowners end up being grateful for getting helped.
Apparently relationship building is key to the process. Some distressed home-owners are more motivated to sell than others. Some just need direction to finding proper solutions to their foreclosure process. There's no way to turn an ugly situation into something beautiful. The goal is to create a scenario where everybody comes out ahead.
To accomplish a successful purchase, experts have outlined the following seven steps:
o Locate loans in default
o Evaluate and narrow selections to pursue
o Inspect the property
o Evaluate property owner's needs
o Determine property market value, fix-up costs and potential sales price
o Arrange default work by negotiating with owner and lender
o Close on property, repair and resell quickly
Not all foreclosures are previously owned homes. In some areas, a slow economy has left builders of new mid and upscale homes at the end of their construction loan periods without finding buyers. In such cases, the banks involved take possession of the homes and attempt to sell them using real estate agents to handle the deals. These are called "hidden foreclosures."
The term "hidden" is used because no one associated with the sale of these properties will refer to them as foreclosed homes. They are not as easy to identify and rarely appear on national lists. Another term used is "before foreclosure." As you'd expect, this is earlier in the process, where a homeowner is about to go into default. Rather than losing all equity, a property owner accepts a position of the difference between the equity and the home's market value.
The number of homes facing pre-foreclosure has reached an all time high. While no one claims to have a crystal ball, if you're thinking of dabbling in the real estate market, it appears that now is prime time to start the learning process.
So what appears to be the cause of all this? Falling behind on mortgage payments can be precipitated by job layoff, divorce or even illness. But a new phenomenon is at work -- homeowners who pull out the equity in their home to pay for cars, college, renovations or even credit card debt.
Also because of high housing prices, many first-time buyers have been enticed by adjustable rate and interest-only mortgages. They hold down costs in the early years of a loan, but can create problems when payments rise later. The sad fact is that some people who would have been laughed out of the bank years ago because they had poor credit or no down payment are eagerly sought after today.
Mortgage rates can only rise from where they are now so, when you add 2+2 together, everything suggests that the default rate will only go higher. Since the key to making money in real estate is finding motivated sellers, investors who are organized, informed and persistent are bound to make a bundle.
The deals are out there. The ones who will make the most money and who will get rich are the people who get the inside information and the proper training.
You can easily get $300,000 in cash from my money system found @ http://www.cashflowexperts.biz
Take advantage of these once in a lifetime investing opportunities now while the trend keeps growing.
It is during the period called PRE-foreclosure that real estate investors can strike gold. Pre-foreclosure refers to the time during the foreclosure process when a lender files notice of default in official public records, and the date the property is scheduled to be sold at a public foreclosures auction or trustee's sale.
Many homeowners who are facing foreclosure have been struggling
financially for as long as a year before they throw in the towel. And, while some people feel uncomfortable - as if they are taking advantage of someone else's misfortune, the reality is quite the opposite. Legal experts say that, fraudsters have moved into the foreclosure business and are positioning themselves as "rescuers," They are stealing large numbers of homes and fleecing owners out of money across the country. Honest investors who know how to buy a property in foreclosure can literally help a homeowner save his credit and his dignity. Many homeowners end up being grateful for getting helped.
Apparently relationship building is key to the process. Some distressed home-owners are more motivated to sell than others. Some just need direction to finding proper solutions to their foreclosure process. There's no way to turn an ugly situation into something beautiful. The goal is to create a scenario where everybody comes out ahead.
To accomplish a successful purchase, experts have outlined the following seven steps:
o Locate loans in default
o Evaluate and narrow selections to pursue
o Inspect the property
o Evaluate property owner's needs
o Determine property market value, fix-up costs and potential sales price
o Arrange default work by negotiating with owner and lender
o Close on property, repair and resell quickly
Not all foreclosures are previously owned homes. In some areas, a slow economy has left builders of new mid and upscale homes at the end of their construction loan periods without finding buyers. In such cases, the banks involved take possession of the homes and attempt to sell them using real estate agents to handle the deals. These are called "hidden foreclosures."
The term "hidden" is used because no one associated with the sale of these properties will refer to them as foreclosed homes. They are not as easy to identify and rarely appear on national lists. Another term used is "before foreclosure." As you'd expect, this is earlier in the process, where a homeowner is about to go into default. Rather than losing all equity, a property owner accepts a position of the difference between the equity and the home's market value.
The number of homes facing pre-foreclosure has reached an all time high. While no one claims to have a crystal ball, if you're thinking of dabbling in the real estate market, it appears that now is prime time to start the learning process.
So what appears to be the cause of all this? Falling behind on mortgage payments can be precipitated by job layoff, divorce or even illness. But a new phenomenon is at work -- homeowners who pull out the equity in their home to pay for cars, college, renovations or even credit card debt.
Also because of high housing prices, many first-time buyers have been enticed by adjustable rate and interest-only mortgages. They hold down costs in the early years of a loan, but can create problems when payments rise later. The sad fact is that some people who would have been laughed out of the bank years ago because they had poor credit or no down payment are eagerly sought after today.
Mortgage rates can only rise from where they are now so, when you add 2+2 together, everything suggests that the default rate will only go higher. Since the key to making money in real estate is finding motivated sellers, investors who are organized, informed and persistent are bound to make a bundle.
The deals are out there. The ones who will make the most money and who will get rich are the people who get the inside information and the proper training.
You can easily get $300,000 in cash from my money system found @ http://www.cashflowexperts.biz
Take advantage of these once in a lifetime investing opportunities now while the trend keeps growing.
About Thomas Kish.
Thomas Kish is an author, speaker, business consultant and an active real estate investor. He is a national expert in the area of business credit and has shared the stage with best selling authors Robert Allen, Mark Victor Hansen, and Robert Kiyosaki. Tom has bought and sold 8 million dollars worth of real estate using business lines of credit instead of using his own money. And he has helped thousands of people change their lives with business lines of credit.
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Thomas Kish is an author, speaker, business consultant and an active real estate investor. He is a national expert in the area of business credit and has shared the stage with best selling authors Robert Allen, Mark Victor Hansen, and Robert Kiyosaki. Tom has bought and sold 8 million dollars worth of real estate using business lines of credit instead of using his own money. And he has helped thousands of people change their lives with business lines of credit.
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