Category Archives: Foreclosure Home Deals

Feb 02

Foreclosure Home Investment: The Time has Come

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Several years ago, right after I purchased my home after a divorce, a housing boom made its way into the American real estate market. Housing prices soared as interest rates fell; sellers had the opportunity to evaluate several offers at a time on one piece of property; buyers scrambled to purchase the home of their dreams before interest rates rose again; some sellers even had bidding wars going on over their property.

All that has changed now! The seller’s market has turned around, and many of those people who were so willing to pay top dollar to get the house they wanted are finding themselves in financial woes. It is now a buyer’s market as houses all over the country sit with for sale signs in the front yard for months and even years at a time. Asking prices are being slashed to the bare minimum; the number of foreclosures is at an all-time high, and economists predict that the number of foreclosures is only going to increase for quite a while.

Regardless, real estate can still offer a decent return on investment if you take advantage of the market conditions wisely. One way to do that is to venture into foreclosure home investment.

Whether you want to purchase a house to live in or are looking for a way to make your money grow for you, foreclosure home investment is a strategy whose time has come. With the increased numbers of foreclosures that have already taken place and the forecast of even more to come, lenders are finding themselves with too darn many houses and other pieces of property in their possession.

Many folks believe that banks and other lenders are thrilled with the idea of foreclosing on a piece of property, but the opposite is really true. Banks, credit unions, asset management companies, and the like would much prefer to do what they are in business to do—banking. Most lenders find the foreclosure process ridiculously time-consuming, expensive, and contrary to their fundamental purpose which is to loan and invest money, not sell houses.

With that understanding, it becomes clear that the possibilities to make a profit via foreclosure home investment are upon us. With so many foreclosures already happening and the likelihood of even more in the near future, real estate is available at all-time low prices.

After purchasing a piece of property, you can choose one of several paths to travel in your foreclosure home investment travels. You can purchase a home to live in and sell later. You can purchase a distressed property – one that is in need of repair – and fix it up to turn around and sell it again. Many lenders find themselves not only owning houses they don’t want, but also owning houses that are in bad shape. They definitely are not in the carpentry business, so fixer-uppers can often be purchased at a steal

You may also consider using your home foreclosure investment as a rental property. All those people who are losing their homes still need a place to live, and they find themselves renting. Some people are hesitant to buy in today’s economy, so they choose to rent as well. Students rent all the time. Lots of people rent.

Home foreclosure investment is an opportunity whose time has come.

Jan 30

Extreme Home Makeover Foreclosure

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The economy is in a downward trend. The housing boom that gave rise to about a thousand buy-and-flip-this-real-estate television shows and created little mini-investors all over the country has become more of a whisper than a boom. You know that when even that gorgeous house that underwent an extreme home makeover hits foreclosure, the market is crazy, right? Actually, that is not really true, as when the real estate industry suffers, it is often the higher-end homes and the lower-end homes that take the biggest financial hit.

In the case of the two extreme home makeovers that were shown on television and have ended up in foreclosure, there are probably several reasons why that happened.

Do you remember that old question that people would often be asked to help determine elements of their personality? Would you rather live in the best house in a bad neighborhood or the worst house in a good neighborhood? Well, the best financial answer is the “bad” house in the “good” neighborhood. Any realtor will tell you that price is important, but location is paramount. The extreme home makeover foreclosure was probably due in part to the fact that the houses were way too big, way too expensive, and…well…way too extreme for the neighborhoods in which they were built. A gigantic house in a sea of modest homes cannot get a true reflection of its worth with the traditional “market value” approach of comparing prices in a general area.

In addition to the ill-conceived placement of such enormous houses, it is also necessary to take a look at the past history of the homeowners. Most of the people featured on extreme home makeover shows, and definitely the two extreme home makeover foreclosure homeowners are not used to owning such a huge and potentially valuable piece of real estate. Despite the fact that the huge houses located in modest areas are never going to reach their true price-per-square-foot value, they are still more valuable than the other houses in the area, just by their sheer size. People who are familiar with investing and wealth are generally better suited to knowing how to properly handle it. M Those who are unfamiliar with the ins and outs of real estate investing and home ownership are less likely to be successful with it. In much the same way that a child whose father owns an Italian restaurant learns how to manage restaurants, homeowners of big, expensive houses learn how to manage them.

The whole premise of the show is to provide a gift to folks who are obviously unfamiliar with the taxes, bills, and accompanying opportunities to use the house as collateral without getting burned.

The humongous homes built by the extreme makeover show is really an inappropriate gift, as the new owners were really not prepared to properly manage them. As any homeowner knows, the costs of maintaining, repairing, heating, insuring, cooling, and paying the taxes on any home must be factored into the price of it; my first thought when seeing an extreme makeover home show once was, “Oh my goodness; I couldn’t afford to run the AC in that house.”

Of course, no one wants to tune in to see a plain old cinderblock house being built, and no huge corporations want to donate products to a boring show that no one watches. So, there you have it. There is an extreme home makeover foreclosure waiting to happen.

Jan 23

Mobile Home Foreclosure Information

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Whether you live in a site-built home or in a mobile home, the possibility of facing foreclosure exists, especially in this economic climate that includes a volatile real estate market, increasing unemployment rates, and increases in fuel, food, and related prices. At the same time, you should remember that if you find yourself in financial difficulty and are having trouble making your mobile home loan payments, there are options available to you; it is generally in your best interest and the best interests of your lender to keep you in your mobile home.

Mobile home foreclosure is becoming more common, as is foreclosure in general, but contrary to what many consumers believe, most banks, credit unions, and other lenders are not a giant hurry to process a site-built or a mobile home foreclosure.

The foreclosure process is costly and time-consuming; most lenders would much rather re-negotiate the terms of the loan or otherwise assist the homeowner than they would have the headache of foreclosing on a property.

Foreclosure laws vary by state; there is no national, unified system of laws regarding mobile home foreclosure or other property foreclosure. Similarly, some states consider mobile homes the same as any other dwelling, so they are subject to the same regulations. Other states have different rules for site-built foreclosures than they have for mobile home foreclosures.

Some states have different regulations based on how you registered your mobile home when you purchased it. Depending on whether or not you declared your mobile home as “real property,” your mobile home foreclosure may be handled differently from other foreclosures or in the same way as other foreclosures.

In any event, if you are considering a mobile home foreclosure as an investment or as a residence purchase, you would be well advised to do a sufficient amount of research into the particular legislation regarding mobile home foreclosures. Some realtors can advise you, there is information available online, there are online and traditional companies that specialize in mobile home foreclosure purchases and banks and legal firms may also be able to assist you with what you need to know about mobile home foreclosure purchases.

If you are a mobile home owner who is falling behind in your loan payments, you too should probably consult and experienced professional to help you keep possession of your home. Most bankers do not want to foreclose or repossess property, and as such, can be quite willing to work with you if it appears that renegotiating the deal will result in their getting the funds down the road, even if it takes longer than expected. This basic concept is especially true in today’s current conditions as lenders face more foreclosures than ever.

So whether you are in the market to stop a mobile home foreclosure or purchase a home that is now owned by the bank because of a mobile home foreclosure, today’s real estate conditions may be favorable for you after all. Consult a qualified professional to assist you in whatever state you live in.

Jan 15

Home Foreclosures

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With the real estate boom of several years ago behind us, many Americans are facing losing their homes, and that seller’s market that had home prices soaring and people scrambling to buy has made a downturn. Home foreclosures are on the rise every day, and, in fact, some real estate professionals and economists are calling today’s real estate market conditions a home foreclosure boom.

Homeowners who are facing home foreclosures are likely devastated to realize that what they thought was a great investment has turned sour; there are even some who are simply walking away from the houses – and mortgage payments – that they fought so hard to get just a few short years ago. Faced with an uncertain economy, unemployment, skyrocketing costs of living, and an iffy-at-best real estate market, lots of other folks who would otherwise be unlikely to shy away from purchasing a home are afraid to buy real estate.

Whether you are a homeowner faced with a possible foreclosure, an investor considering the possibility of buying property while the buyer’s market is upon us, or a “regular Joe” who needs a place to live, it is possible to evaluate your circumstances and goals, take a look at the real estate market trends, and make the best decision for your personal needs.

If you are a homeowner and can afford your monthly mortgage payments, this would probably be a good time to hold onto your house. If your situation has changed little, you still have the same (or better) income that you had when you purchased your home, this is not the time to sell unless you absolutely must for some personal reason.

If you are a real estate investor, home foreclosures can offer a giant opportunity for you to buy low and sell high. The premise is– very basic, the idea behind any investment is to start with as low an investment as possible and sell for a profit. Home foreclosures offer just such an opportunity. With the numbers of home foreclosures that are occurring, you may consider purchasing real estate as a long-term investment.

Do not, however, expect to be like the folks on television who buy, make a bunch of cosmetic repairs, and sell for amazing net profit all in a thirty-minute program. If you are going to invest in real estate – through home foreclosures or otherwise – you must be prepared to hold onto the property until selling conditions are more favorable.

If you are a regular American adult who is tired of paying the landlord every month, you too may be able to benefit from the buyer’s market and/or home foreclosures in your area. If your income is reasonably steady, reasonably safe, and reasonably high enough, there is no need to avoid real estate like the plague.

In fact, with conditions being what they are, as long as you are likely to be able to afford your mortgage payments, this would be a very logical time to kiss the landlord goodbye. If you do decide to look into home foreclosures as a potential source of housing, be sure to consult an experienced and qualified professional to assist you, as there are some nuances to consider when purchasing foreclosed-upon property.

Dec 06

Can You Make Money Investing In Foreclosures Today?

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Today both home buyers and real estate investors have become more aggressive in their hunt for bargain homes and the competition for the best priced and most attractive homes is on the increase.  Because of this foreclosure houses are now becoming the prime interest of both home buyers and real estate investors.

Whilst a foreclosure house can offer you some financial benefits there are also some risks involved as you might expect with any house purchase.  Unfortunately not every foreclosure is the same and whilst interest in them is growing you should be aware of what to look for when deciding whether the purchase of a foreclosure house is for you or not.  Below are a number of things that you should be looking for if you want to invest in a foreclosure house.

1.  Pre-Foreclosures

This type of property can offer you an attractive investment or home purchase opportunity if you are willing to work for it.  There is a period of time when a homeowner will be notified that their loan is in default and before the bank will actually seize the home so that they can put it back on the market in order to recoup their monies.  It is during this period that it will be possible to purchase the property and satisfy any financing requirements that are outstanding on it.

Unfortunately there are two disadvantages when deciding to purchase a property using the pre-foreclosure route which discourages a lot of potential investors from choosing this route.

Firstly and probably most importantly is that you will only have an extremely brief period of time available to you in which to complete the deal.  The period of time available is normally regulated by the individual States in the US and is generally a couple of months.

Secondly is the necessity that you deal with the homeowner directly.  The homeowner is probably not only embarrassed that their home is in pre-foreclosure but also they were likely to be unaware that such information is available to the public.

2.  Foreclosed Homes

This is the final step of a bank or lending institutions foreclosure proceedings and this is when the home is put up for sale on the real estate market.  Unfortunately with this method because the bank is in no hurry to lose money on any loan against a property the savings you will make on a foreclosure house may be quite small.

But there are positives to this method as well.  Banks and lending institutions will offer these kinds of properties at a discount (although it may only be small) and also deals on foreclosure houses are much easier to put together as often these transactions will follow the format that is used for common real estate transactions and will offer you similar protections as well.

Nov 22

Foreclosure Home Deals

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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

Oct 17

Investment Opportunities To Be Gained From A Foreclosure Home

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There are many investors today who covet bank foreclosure homes as they see the potential profit that they can make from one.  It is not uncommon to find a foreclosure home being sold at a price which is much lower than the actual market value.  If you follow the old saying “buy low sell high” you stand to earn a nice little return on your investment.

So what is a Bank Foreclosed Home?

These are homes that are owned by a bank or other lending institution because the lender has had to foreclose on the property.  Often foreclosure proceedings will be initiated by a bank when the owner can not pay the mortgage over a period of time.  But before the foreclosure is finalised an investor, if they so wish, has the opportunity to purchase the property directly from the owner.  Many owners are anxious to sell by this method so that they do not have a foreclosure black mark on their credit report.  Should the property have accumulated enough equity then the investor is likely to make a very nice profit from it if and when they sell it on.

However if the foreclosure becomes final then the property will be offered for sale either directly by the bank or the lending institution through a real estate auction.  When it reaches this point you will find that the lender is very eager to sell the property as well for several very important reasons.

1. It is not cost efficient for any bank or lending institution to own a foreclosed property as they are expensive to maintain.  They will need to cover the insurance on the property, pay any taxes that the property is liable for, as well as maintain and keep the property secure whilst it is vacant.

2. It does not look good for any bank or lending institution to have a large portfolio of foreclosed homes as this will just magnify what bad lending decisions they have made.

3. Many banks and lending institutions when selling a foreclosed property will recover any losses that they have incurred upon its sale.  They don’t care if they make a profit as well.

What is a Bank Foreclosure Home Auction?

This is where banks will sometimes sell foreclosed homes through a real estate auction.  If you do your homework right then buying a foreclosure home at auction can be a sound investment.  But if you do it carelessly then you could end up paying a lot more for a foreclosure home than it is actually worth.

What you need to do is inspect any foreclosure home thoroughly before you put a bid on it.  You will need to calculate the cost of repairing the property as well as what it is actually going to cost you to purchase.  Unfortunately there are times when an inspection of the property cannot take place so only bid on these kinds of property if you have a nice margin for any unknown repairs that may occur.

Unfortunately, as with anything that is going cheap, foreclosure homes do not stay on the market for long, so an important aspect of investing in such properties is to have good listings so that you can get to these properties before they are sold.   You can obtain foreclosure home listings from Courthouses, Lending Institutions or Government Agencies (but only use these methods if you have time to spare).  Otherwise the best way of finding good foreclosure home listings is to sign up with one of the online bank foreclosed homes listing services that are now available.  These will provide you with accurate and timely listings of foreclosed homes so that you can be one of the first investors on the scene when a foreclosure home becomes available.

Sep 12

Foreclosure Investing: Deals – Find Them!

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Some people never accomplish their real estate investment goals because they think there are no good deals left.

That is absolutely NOT true. If you know where to look, you will soon realize that there are great opportunities in your area every day of the week.

Welcome to another installment of Matthew Griffin’s 7 Foreclosure Secrets. Be sure and look for others in the series at http://www.foreclosureprofitsnow.com/. While you’re there, check out all the other great educational materials that will help you succeed in real estate investing.

But for now, I’m going to tell you how to find great real estate deals at absolutely no charge to you. Why? Because if you’re like most people, you aren’t living the life of your dreams. The vast majority of people are under some type of financial pressure, or don’t have enough money put away for things like college or retirement. Is that you?

If it is, I have great news for you! Real estate investing can change your life. And one way for you to be a successful real estate investor is to know how to find great deals. Here’s how:

Legal notices. Properties that are in foreclosure are required to have their procedural details printed in the local newspaper and/or posted on a public bulletin board at the county courthouse. Because investing in foreclosure and pre-foreclosure properties can be so profitable, these notices are a great place for the savvy real estate investor to find their next great deal.
Banks, Brokers, Closing Attorneys. If you take the time to build positive business relationships and network with other real estate professionals, you will discover that they will be more than happy to refer deals to you. Simply let your colleagues know that you are a real estate investor who is interested in assisting property owners who are in foreclosure or pre-foreclosure. You may be very surprised at how many great deals you find simply by word-of-mouth.
County recorder’s office. Most people don’t understand that any legal proceeding involving a foreclosure or pre-foreclosure is a matter of public record. Any person can walk into their county recorder’s office and look for property information, tax liens, mortgage records, notices of trustee sale, and other indicators of residential property that might present a great deal for an investor. Take a little bit of time and visit your county courthouse; you could just walk out with the deal you’ve been looking for.
To be honest with you, there are great real estate investment deals everywhere. It doesn’t matter whether people think the local market is hot or cold; you can find the deals. You just have to know where to look.

To learn more about finding great deals, real estate investing in general, or other installments in the Matthew Griffin’s 7 Foreclosure Secrets series, be sure and visit http://www.foreclosureprofitsnow.com/. You’ll be glad you did.
Matthew Griffin