Foreclosure
Finding investment home earnings by working the Foreclosure Homes
By Buyncomeproperties.com
Sep 21, 2005, 10:15

What a bargain, to Find Area Real Estate in the foreclosure arena. Yes, this provides people with the greatest tool for making profits. Lists of foreclosed investment homes are everywhere. Why? That is because many homeowners are defaulting on their home loans.

When a homeowner falls three months or more behind, the mortgage brokerage acting as the lender, files a public default notice. This “Foreclosure Default Notice,” is one of many steps in the lender’s process to recover the money that was loaned out. The process can end with the lender repossessing or taking ownership and then reselling the property.

A perceptive buyer of investment real estate only feels a little sorrow for the losing homeowner. Why? Because that person in default usually had several steps that could have been taken to halt the foreclosure process. In fact, expert investors usually offer to rescue the defaulting homeowner, of course at a sizeable profit to themselves.

So, there are four ways that you the potential buyer can cash in on these investment properties before, during, are immediately after this foreclosure happens.

Initially, you may help the defaulter get a secured loan during the pre-foreclosure stage. Why would you want to do that? Because, if the house has enough equity in it to have drawn refinance leads, eventually the owner will probably use the refinancing to get out of foreclosure. Each State in the US has laws requiring certain grace periods that allow the defaulter to pays off the default amount and reinstate or refinance the loan.

Also, you can suggest home improvement financing be acquired at the same time by the pre-foreclosure customer. The more the defaulter refinances for, the greater the chance is that they will use your mortgage broker to secure their loan. You as the once potential buyer do not have to be a licensed mortgage broker to earn a client and origination fees.

Conversely, you should be pre-qualified for a low rate mortgage before you talk to the pre-foreclosure resident. That way, if they decide that they do not want to afford the equity with another loan, you may quickly buy the Real Estate For Sale from them. This second stage, when the previous borrower/owner now becomes a seller, establishes your best, unearthed treasure.

Buying equity in pre-foreclosure Homes For Sale brings the most profits and requires the least cash or credit. If you take the time to research the title and condition of the property, you can realize discounts of twenty to forty percent below the market value. This brings greater windfall than buying Real Estate For Sale at most auctions.

Once again, these real estate leads should be sought guilt free. Although, you make great income due to the perceived losses of the sellers, in reality, you have benefited them. Why? Because your home financing allows the defaulter to pay-off the loan and avoid having a foreclosure on his or her credit history.

Yet, what if the real estate leads refuse your tactful advances. Do not give up on receiving part of the equity left in that property. Go on pursuing the investment property at the public auction at the end of pre-foreclosure. At these auctions, you can also find sale leads as you will meet potential buyers. You bid with them on the property and these buyers normally have cash to pay. Yes, these auctions often present bargains and help you the investment property buyer, avoid the volatility of bartering with the defaulting one.

You can still follow your leads lists to find your repossessed home. These types of homes are called Bank Owned Real Estate or REO properties. When no bidders buy your prospective house at the foreclosure auction, many lenders desire quickly disposing of the property at bargain prices.

Immediately contact the Bank Owned Real Estate broker to inquire if you may purchase the residence at a price close near the amount of the foreclosed mortgage. Do this before the local real estate franchise convinces the mortgage franchise that the house can be sold at full retail market price. The lender or bank will usually show a clear title to you the buyer for Bank Owned Homes For Sale. Still, less money is made on these properties, unless they are “As Is” Fixer Uppers. More info on “As Is” properties can also be obtained at this pages web links.

Yes, Great Profits can arise from tracking leads in the foreclosure arena. Developing a tracking system to record the free foreclosure listings and Bank Owned Homes For Sale does not have to be difficult. You can start the hard way by scouring through all of the legal newspapers or privately published, daily or weekly newsletters for the Free Foreclosure Listings. Or you can waste time networking with your local real estate attorneys, realty brokers and title insurance officers, all of whom are your competitors and who also are investors. Or instead, you can do what is the most reasonable and profitable step to take: follow the links located on this web page. This will help you find all the HUD Foreclosure real estate and Bank Repo Properties that you need to keep earning cash by working the Foreclosures.