Monthly Archives: November 2011

Nov 23

Buying a HUD Foreclosure Property

Posted on by

Department of Housing and Urban Development or HUD foreclosure properties are readily available across the USA.  However the process for purchasing such a property is not the same as when buying a home from an individual.  So it is important that you read through this article before you make any decisions to go and purchase a HUD foreclosure property as an investment opportunity.

So what is a HUD property?
If a property has been purchased with a loan that is insured by the FHA (Federal Housing Administration) then the lender can file a claim with them for the balance which is due on the mortgage.  The FHA will then pay the lender’s claim and ownership of the property is transferred to HUD who is able sell the home.

How much do you expect to pay for a HUD property?
Such properties will be appraised and priced at what is considered a fair market value for the property for where it’s located.  Any home that is in need of repairs will have its price adjusted downwards in order to reflect any investment that the new owner will have to make to improve the property.

What one should remember if looking to purchase a HUD foreclosure as an investment opportunity is they are sold as seen and the new owner is responsible for all repairs and improvements that are required.

Where do I find a HUD property?
The best way to view any HUD listings is to follow the state links on the HUD’s website.  However it may take a while as each state’s internet destination is set up differently, so take some time to browse their search engine and its layout.

Once you have located a HUD foreclosure property that you would like to see then all you need to do is contact any HUD approved real estate office to arrange an appointment.  These real estate agents can also be found on the HUD website.

To purchase a HUD home can I just simply make an offer for it?
Unfortunately HUD foreclosures are sold using a bidding process and there is a period (Offer Period) of time in which sealed bids can be accepted from an agent.  At the end of the offer period all the offers are opened and generally the highest bid is the one that will be accepted by HUD or they may decide to accept the bid which brings them the highest net profit.

If a home remain unsold after the initial offer period then are bids opened as they are received?

Normally when a bid is accepted you will be notified by your agent within a day or two of the expiry of the offer period and you will be issued with a settlement date (usually 30-60 days from the date when your contract was accepted).  On such sales HUD will pay real estate agencies fees of up to 6% for any homes that are sold so be aware that in order for the selling agent to be paid they must insert the wording in their contracts that verifies that HUD will pay their commission on a HUD foreclosure sale.

Nov 22

Foreclosure Home Deals

Posted on by

Did you know that you can save tens of thousands of dollars on the purchase of your home by investing in a foreclosure or preforeclosure property? When you are trying to purchase a home for the first time, and you have limited resources and limited funds, it is particularly important that you get the most “bang for your buck”.

One way for a young family to get the most home for their money is to purchase a “distressed” property. With research and due diligence, you may just end up with a larger or nicer home than you thought you could afford, but without the extra price tag. One way to accomplish this is by purchasing a property that is in foreclosure.
You may want to look for an REO Foreclosure.

What’s an REO Foreclosure? This stands for “Real Estate Owned”, or in other words,property that was foreclosed upon by the bank holding the mortgage, and now belongs to the bank. But, the bank is a bank and not a real estate investment firm. They are simply not in the business of residential real estate and have no interest in the home other than to recoup their investment.

How does this benefit you? Well, more than likely the previous owners of the property have been making payments on it for some time, bringing down the amount the bank was owed and increasing the equity in the property. Since
the bank is only concerned about recouping what they are owed and not really attempting to make a profit, then you can essentially reap the benefit of the equity in the property and purchase the home for what is owed which is likely well below current market value.

This approach while simple in theory does require research, time, fixup, and perhaps even cash upfront. This approach is not for everyone, but if your situation allows for it, you may be able to snag a great deal on a nicer home than you could otherwise afford.

Amber Lowery is an online publisher and is responsible for maintaining a large network of home and finance sites. For more information on Foreclosures, visit: http://www.foreclosure-property-deal.com – the Foreclosure Resource. Current foreclosure property listings can be found here: http://www.foreclosure-property-listings.com

Nov 19

Are Free Foreclosure Listings A Great Way To Find Foreclosed Homes?

Posted on by

It is quite a challenge to find a reputable free foreclosure listing and because real estate investors earn the bulk of their income through purchasing properties cheaply and selling them for profit the demand for foreclosed properties is very high.

For those looking to buy a bank owned or foreclosed home as an investment they can expect to save between 20-50%. But the problem many people have is actually gaining access to foreclosed property lists. Although there are many sites offering foreclosure listings you will need to pay a subscription fee to them. That can be an option if you want to shortcut the process. But there are some sites who advertise free listings and there are many advantages and disadvantages to be gained from these types of listing services.

When searching for a free foreclosure listing online you will come across several sites that offer free information, however this information is usually provided only on a trial basis. You will find that the majority of listing services available online involve you paying a subscription fee prior to you carrying out any searches of their listings.

But do not worry – there are many services around which will offer a free trial, but it is important to note that before you can take advantage of any free trials the listing service will ask you to provide them with your credit card details. Unfortunately with these services they will bill you at the end of the free trial and then continue you to bill you until you request your credit card to cancel their standing order.

Although free foreclosure listings are not easily accessible, once you do locate a good one then you will be provided with the opportunity of purchasing an inexpensive home. The best way of finding a free foreclosure listing is through a realtor website as when banks work with such people they are given properties to sell and are able to list such homes on their personal or company sites. Plus in some states you will find that they compile a free foreclosure listing of properties throughout the region.

The benefit of a free foreclosure listing to a potential investor is that they can find homes for as little as $10,000 on them. Plus choosing a property from such a list allows you to shop for a home without having to move away from your computer. All free foreclosure listings include pertinent details on the property in question, such as square footage, number of bedrooms, bathrooms and any additional features, as well as the condition of the property and the sale price.

There are however a couple of negatives points to free foreclosure listings and that is that the information provided on these lists is readily available to anyone and normally such properties will have already been picked up by real estate investors just as you get to know about them. Moreover free foreclosure listings are not updated on a regular basis so it may be wise instead to spend a bit of money of getting an accurate and useful list sent to you.

Nov 17

Foreclosure Investing Fortunes through Timetables

Posted on by

You can build your fortune, starting today, if you use a simple timetable. In this article I will reveal the amazing power of creating and following timetables.

Your timetable is a plan for what you aim to accomplish, and when you’re going to accomplish it. Why is a timetable so important? It’s important because it tells your mind that you have got a project and a goal that you’re chasing. It’s fixing the plan in your mind.

The timetable’s important because you’re seeing ways that it can be improved. You’re giving yourself a strong push toward success. You’re directing your energies towards your specific wealth generation goals–instead of wandering around and mistaking movement for achievement.

Let’s say my target is to buy my next house within the next three months. No matter what, I am going to make those deals happen. No matter how many calls I have to make. No matter how many people I have to see. I will have my contract within 90 days. That’s building a timetable. Timetables will give you freedom. Are they a little overwhelming? Yeah, they are. However, those who are successful push themselves to be greater than they ever thought they could be.

Now you need to decide on the “when” of your timetable. You can leave your job when it is costing you too much money to stay there. But you’ve got to understand that you need to replace that lost income on a regular basis.

One of the biggest mistakes I see with young investors is that they don’t understand that they have to have cash flow monthly.  What you might want to do is establish an income goal for your foreclosure investing business. So you might strive to create 50 cents of income doing foreclosure deals for every dollar of your regular income.

For example, if you make $50,000 a year in your current job, you are going to figure out a way to make an additional $25,000 that first year in your foreclosure investing business. Year two, you make one dollar for every dollar, working the same amount of time. Yes, this is possible, especially with real estate. Now you make $50,000 in your regular job and $50,000 in your part-time job.

Year three becomes the year that you may actually quit your regular job. Once you can get to 150 percent of your regular pay, it’s time to quit. For example, if you’re making $75,000 to your job’s $50,000, you’ve made it. Make sure you can do it on a consistent basis, of course.

Also, take into account the benefits that your regular job pays you.  When you work for yourself, you don’t get health benefits, you have to buy them. You don’t get matching 401k benefits, you have to invest yourself. However, setting timetables and disciplined strategies will lead to great wealth generation.

About the Author

Paul Wells has been investing in foreclosures full-time for more than 5 years. For more foreclosure investing secrets like the one in this article, subscribe to Paul’s Free Foreclosure Investing course here: http://www.FreeForeclosureInvesting.com

Nov 15

Foreclosure Bank Owned Properties – Buying At low Cost

Posted on by

Foreclosure bank owned properties are an excellent opportunity for anyone who wants to save money on their next real estate purchase.  Whether you are a homebuyer or a foreclosure homes investor, foreclosure bank owned properties allow you to buy properties at a fraction of their market value.  In fact, foreclosure bank owned properties are priced at up to 5% to 50% off their market value, simply because of the way you can buy and sell foreclosure bank owned properties.

Quite simply, foreclosure bank owned properties are homes that have been repossessed by a government agency or lender due to non-payment of the mortgage.  In many cases, the lender or agency simply wants to get rid of foreclosure bank owned properties quickly – even if it means selling at a low price.  Upkeep of foreclosure bank owned properties costs more than selling them cheap.  The second reason why foreclosure bank owned properties are sold at below market value has to do with their condition.  In some cases, the former owners of foreclosure bank owned properties were in financial trouble before their home was seized, meaning that some repairs have not been made.  This disrepair pushes the price of foreclosure bank owned properties down further.  In some cases, foreclosure bank owned properties require little more than a coat of paint and some cleaning – but these simple and inexpensive changes can save you thousands.

Pushing the price of foreclosure bank owned properties down further.

Even though foreclosure bank owned properties are generally sold at prices below market value, this is not always the case.  In order to get the best deals on foreclosure bank owned properties, you need to be prepared and shop wisely.  Your first step is to find the right foreclosure bank owned properties.  Once you find some foreclosure bank owned properties you like, though, you still need to research.

Researching foreclosure bank owned properties can help you tell the deals from the duds.  You cannot let emotions rule your purchase, and you cannot assume that all foreclosure bank owned properties are sold at below market value.  Instead, you need to do all your math on paper, to determine how much you stand to save.  You can do this simply by:

Hiring a professional assessor and inspector to examine the property for you.  Get a market value for the home and an estimate for the repairs that need to be done.  Find out how much homes in the same neighborhood sell for as well.

Figuring out the total costs of any foreclosure bank owned properties you are considering.  For each home you consider, determine your closing costs, actual house costs, incidental costs, and financing costs.

Determining what you are using foreclosure bank owned properties for.  Whether you are looking for foreclosure bank owned properties that are investments or a home will determine which foreclosure bank owned properties are deals for you.  If you are seeking a home, look for foreclosure bank owned properties in areas you would like to live that have the amenities you want.  These foreclosure bank owned properties you are considering should save you money on your home so that you can enjoy equity fast. If you are looking for an investment, make sure that you will get at least 15% or more in profit through renting or selling, and remember that many foreclosure bank owned properties allow you to earn more on your investment than that.

Ernani Uchoa is the writer of foreclosuredeals.com – Find more bank owned articles at http://www.foreclosuredeals.com

Nov 11

Bank Foreclosed Homes – Great Investment Opportunities

Posted on by

Bank foreclosed homes are coveted by investors because of their profit potential. It is not uncommon to find bank foreclosed homes sold at prices much lower than their market value. If you follow the old business adage “buy low sell high”, you stand to get a nice return on your investment when you invest in bank foreclosed homes.

What Are Bank Foreclosed Homes?

Bank foreclosed homes are homes that are owned by banks or other lending institutions because of the lender having foreclosed on the property. When a homeowner cannot pay the mortgage for a few months at a time, the bank will initiate foreclosure proceedings against the owner. Up until the time that the foreclosure is final, the investor has the opportunity to buy the property directly from the owner. The owner will be anxious to sell to avoid having a foreclosure as a black mark on their credit report. If the property has accumulated enough equity, the investor will make a very nice profit.

After the foreclosure is final, the bank foreclosed home will be offered for sale, either directly by the bank, or through real estate auctions. At this point, the lender is very eager to sell the bank foreclosed home for several reasons:

It is not cost efficient for lenders to own bank foreclosed properties. They are expensive to maintain since the bank must carry insurance on the property, pay taxes, and maintain and secure the property.

It does not look good on the lender to have a large inventory of bank foreclosed homes. It just magnifies their bad lending decisions.

The lender needs to recover the losses they have incurred on bank foreclosed homes.

Bank Foreclosed Homes Auctions

Sometimes the bank foreclosed homes will be sold at real estate auctions. If you do your homework and play your cards right, buying bank foreclosed homes at auction can represent a great investment. On the other hand, if you do it carelessly, you could end up paying a lot more for the bank foreclosed home than it is worth.

You need to inspect the bank foreclosed home thoroughly before you bid on it. Once you calculate the cost of any repairs needed, add it to the total cost of the property. Remember to account for the time that it will take to repair the bank foreclosed home. Sometimes an inspection is not possible, so you should only make bids that leave a nice margin for any unknown repairs.

Bank Foreclosed Homes Listings

Good bank foreclosed homes do not stay in the market long. An important aspect of investing in bank foreclosed homes is having good listings so that you can get to the properties before they are gone. You can get bank foreclosed homes listings from courthouses, lending institutions, government agencies, etc., but unless you have a lot of time and resources, this is not a good option.

A better use of your time and money is to sign up with an online bank foreclosed homes listings service such as ForeclosureDeals.com, which provides you with accurate, timely listings of bank foreclosed homes so you can be the first one on the scene when a bank foreclosed home comes on the market.

Ernani Uchoa is the author of Foreclosuredeals.com, Leading source of Foreclosure Homes and Bank Foreclosure Listings. For more information please visit http://www.foreclosuredeals.com or subscribe to get our news feed on our foreclosures blog.

Nov 10

Foreclosure Investing: No Cash, No Credit, No Problem

Posted on by

Did you know you can invest in real estate even if you don’t have a lot of money and your credit isn’t perfect?

Well, you can…and I want to show you how.

My name is Matthew Griffin and I am a real estate investor and author.  In fact, I offer a full course on foreclosure real estate investing that you can check out by going tohttp://www.foreclosureprofitsnow.com/.  But today, I am offering you one of my seven foreclosure secrets at absolutely no charge.

Why would I do this?

Because most people think that they have to have a lot of money or great credit before they can even think about investing in real estate; and this mindset simply isn’t accurate.  In today’s real estate market, there are many ways for an investor to control a property without going to the bank or to a traditional mortgage lender.  All you have to do is be able to “think outside the box.”

YOU can be a real estate investor TODAY without a fat bank account or a five-star credit rating.  Here’s how to do it:

  • Locate a property where the homeowner is facing a foreclosure situation because they’re unable to afford their mortgage payments.
  • Pick up the telephone, call that homeowner, and make an appointment to come over and discuss their situation.
  • Get that property under contract by explaining that you are a solutions provider and real estate investor who can help them get out from under their debt.
  • Sell that contract to another real estate investor and collect an assignment fee OR finance the deal through a hard money lender and sell the property yourself on the retail market.

YOU HAVE JUST INVESTED IN REAL ESTATE AND MADE A 
PROFIT WITHOUT TOUCHING YOUR OWN MONEY OR HAVING 
YOUR CREDIT REPORT CHECKED.

I provide all of the details on how to do this and much more in my educational programs.  Just visit my website athttp://www.foreclosureprofitsnow.com/ to learn more.

Think about the difference this investment strategy could make in your life.  Do you have enough money to live the lifestyle you always wanted?  Have you funded your retirement?  Do you have enough money to make your future secure?  If you’re like most people, the answer to these questions is no; but investing in real estate can provide you with the money you need to live your life free from financial pressure.

I am going to be offering all seven of my Foreclosure Secrets at no charge for a limited time.  I want you to see that real estate investing does not have to be complicated, difficult, or stressful.  YOU can be a successful real estate investor TODAY if you’ll take the time to learn the right way to do it.

Be sure and look for the next installment of my series on 7 Foreclosure Secrets so that you can learn profitable ways to invest in real estate.  In the meantime, I encourage you to investigate all of the educational resources available athttp://www.foreclosureprofitsnow.com/.  You’ll be glad you did.

Don’t put off your successful career in real estate investing any longer.  Get started TODAY!

Matthew Griffin

Nov 03

Purchasing my First Foreclosure

Posted on by

by Jonathan Cochran

Three years ago, before I had even started thinking about the opportunities in Real Estate, I realized that I needed to stop paying for a place to live for nothing in return. So I decided to purchase my first home and start gaining equity on my money.

A friend of mine referred me to a Realtor that he had used and I called her up. She showed me a few place that were within my price range, but I ended up finding a neighborhood that I loved driving around one weekend. I let her know about it and sure enough she found multiple places within the neighborhood.

The property that I liked the best was considerably less than many of the other properties in the neighborhood (imagine that). After asking the reasoning for the low price, my Realtor informed me that it was a foreclosure and I would be dealing directly with the bank if I wanted to purchase this home. Needless to say, I purchased the home thinking I received a great deal on a foreclosed home…

Now that I have been researching and dealing with Real Estate for a little while, I realized that I received a decent deal but it could have possibly been better. When a someone goes into foreclosure it is a court process that they must go through. The sheriff may come and seize the premises, change the locks etc… The property then goes to sheriff sale where it will be auctioned off. You can usually find these listings on your counties sheriff web site which is usually listed off of your counties main web site. The county will use the proceeds from the auction to pay off the liens on the property. The mortgage is always the first lien to be paid, so most of the time the bank that lent out the money for the home will be at these sheriff sales. This is because they want to make sure that they are going to get the money that is owed to them. To do this, they will usually bid on the home until it reaches at least the amount that they are still owed. This will insure that they either get the home or the money they are owed on the home. Depending on many factors (how many properties the bank currently has, what size the bank is, etc) the bank may bid even more because they know that they can sell it for even more of a profit or stop there because they do not want to hassle with it (employee and legal fees can add up fast for them). The later is what you want to hope for, this is where you can get a great deal on a property. You may also want to look for a home that was last purchased many years ago, this could mean that more of their mortgage is paid off and the bank is owed less money so they will not bid as high (this is just a theory and will not always play out).

So it is possible that I could have gone to the sheriff sale and purchased my home for even less than my “Great Deal” via the bank. The downside of foreclosures is that you can not get in to see them a lot of times. Also you are usually purchasing them “As Is”, so anything that comes up after you purchase it is your problem. And finally you will usually need 10% of the final purchase amount the day of the auction.

I am planing on purchasing my next home at the sheriff sale, so look for an upcoming article on my experience with that.

I am by no means a foreclosure expert, so If you find any errors in my column please let me know so that I can provide the most accurate information to my readers. I will be sure to give you credit in my article for any updates that are provided. As always, checkwww.HaydenCanHelp.com for my weekly column.

Jonathan Cochran
Property Manager
Hayden Homes LLC
http://www.HaydenCanHelp.com