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Last Updated: May 14th, 2012 - 22:24:01 |
What are the steps to getting cheap mortgage leads through buying foreclosures?
In today’s market, many homeowners suffer a notice of default that forebodes an imminent foreclosure proceeding. So, for the investment property buyer, what is the best way to purchase a foreclosure? My favorite method is buying the pre-foreclosure homes, because of today's market. However, you can look at the different steps in the foreclosure investment home buying process, and decide which you like.
Actually, the foreclosure process has three distinct periods that cover many steps each. The first period is called pre-foreclosure notices. Once the notice of default, also called a lis pendens, is filed, the owners, now in pre-foreclosure, must pay up in total or risk losing all their equity, and their property and credit. This is your time.
The first step towards purchasing a pre foreclosure home is to locate the investment properties scheduled for foreclosure. To find you a pre-foreclosure in the US use the link, http://208.229.144.62/us/us/igate/usahud/pages/index/pages.html. The web site will redirect you to http://208.229.144.62/dyn/13/i/flhud/h/flshell//search.html. There you can find the county auction sale or sheriff's sale. You are not ready to bid yet.
HUD will not allow you to view their list of investment homes until you first pre-qualify with them. And then, they will try to refer you to their investment real estate agent. If you prefer choosing your own agent you may; such as, Real Estate expert Donald W. Gomez Jr. of Tropical Paradise Realty in Miami, Florida. (786-202-0203) Also notify your local real estate lawyer to reveal your interest in purchasing foreclosed properties.
Once you have your free pre-foreclosure listings drive around and inspect the investment property to determine its condition and home mortgage market value; Always do the comps, that is obtain recent mortgage leads’ sales prices in the area as shown to you by your local real estate franchise.
Next, you must determine on the pre foreclosure list, which the ownership belongs to, identify potential problems, research any existing and request for notice of default liens by conducting a title search on the foreclosed property.
After that, you contact the trustee of the foreclosure sale to question the minimum bid that the mortgage holder will accept. Determine how you will finance the foreclosed property or find out if you may assume the current home loan.
Accordingly while tracking leads; you can mention the benefits they will encounter if they sell, such as preventing further credit damage, stopping the foreclosure; and getting a new start. Be friendly and tactful. Never offend or insult them by picking fault.
Next, you should investigate the foreclosure proceedings in your state. In South Florida, the local site http://www.miami-dadeclerk.com/foreclosure-sales/home.asp, explains the foreclosure auction procedures. For instance, the following procedures and criteria are usually established: All bidders shall fill out a registration form for each sale prior to bidding. If time allows, all canceled real estate investment sales will be posted and announced before the start of all sales, or when received during or after the sale
Then, successful foreclosure auction bidder shall post with the Clerk, before the conclusion of the sale, a "good faith" deposit equal to 5% of the final bid. All payments must be in the form of cash, cashier's check, or money order payable to the Clerk of the Court with the balance of the bid due by 4:30pm on the day of the sale.
Finally, you now own you very own mortgage investment, one that can start you on the road to earning big money in the investment properties business.
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