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Posts Tagged ‘Short Sale’

Extreme wealth can be captured simply by investing in real estate and foreclosures. Purchasing a property in foreclosure can be a complicated process, and to make money investing in foreclosed houses, you have to appreciate the process thoroughly. Getting into this form of real estate investing while uninformed can be a very risky proposition

As you start to learn about the foreclosure process, you need to take a look at your community and state laws that oversee the purchasing and selling of foreclosed houses. Depending on the state in which you live, there may be restriction on the length of time you you need to live in the home after purchasing it at auction. Depending on your investment goals, these laws may place steep barriers to your investment goals.

If, as part of your foreclosure investing goals, you want to fix and flip a property, the next step is simply to unearth a residence that is in foreclosure. Your regional county posts a list each day, and if you don’t want to go down to the recorder’s department, there are a number of online services that do present a daily list of public sale foreclosures. Tap into as many of these resources as possible in order to stay informed on what houses may be coming up for auction that meet your investment profile.

In addition to finding the foreclosed home, you must also determine how you will pay for it. Buying a foreclosed home from a court sale requires a sizable down payment, or more often, the full cash total on purchase. As a result, you have to have your financing in place before you buy the house.

Finally, if you have your financing in place, and have found a property that will meet your investment goals, the next steps are basically to bid and subsequently buy the foreclosed home. Through the buying process be sure not to overbid for the home; at auction you may be contending with extra investors and it is very easy to bid yourself right out of your return.

Subsequent to you have closed on the home and it is yours to keep and administer or rehab and repair, it is just a matter of getting to work. In conclusion, purchasing a foreclosed home is an uncomplicated process; you just need to know what you are doing.

Investing in real estate and mi foreclosure can be a great way to earn significant return. If you have ever though about real estate investing, visit us today to learn how to buy foreclosed homes.

Recently, Bank of America sent out close to 100,000 solicitations to distressed homeowners offering them a chance at a deed-in-lieu transaction. “Deed-in-lieu” means giving the deed to your home to a lender in order to circumvent the foreclosure process. You get to walk away from your house, and the lender states the debt resolved because you returned your collateral. Many lenders have announced that they will offer a variety of incentives for this type of transaction because it saves them a great deal of time and money in processing costs even though they may take a hit when they try to sell the home in today’s market.

Some short sale investors are viewing this new trend with concern, particularly since some lenders have stated that they find deed-in-lieu transactions preferable to short sale transactions since they take less time. Additionally, homeowners who are going to lose their homes anyway may find this to be a more acceptable alternative since it is being portrayed as a route to 100% resolving the debt rather than worrying about being followed up with later for the remainder just when you have gotten back on your feet.

Short sale investors, should not be too worried about this. For starters, there are tons homes that will still go through the short sale process, and not all circumstances are going to warrant or qualify for a deed-in-lieu. You can also point out to homeowners who may be backing out of a short sale that unless the wording in their deed-in-lieu a arrangement states that the debt is considered entirely resolved by the return of the property, which is not always the case.

While deed-in-lieu and a short sale do go on your credit history and impact your credit score, a deed-in-lieu remains on your history for a full 7 years, and you may have to request that it be removed. According to new legislation, short sales may be removed as soon as 3 years.

Certainly, some homeowners may opt for a deed-in-lieu transaction instead of a short sale transaction with you. However, the current deed-in-lieu “push” could actually be a positive, since it may put a dent in homes that lenders were unwilling to short sell anyway. Simply be prepared to answer questions about this style of transaction, then continue doing your short sales and helping people in trouble resolve their personal housing issues.

For some great video training visit www.FreeShortSaleCourse.com