When,Make,Foreclosure,Investme finance, share, loan When To Make a Foreclosure Investment
If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that
There are three phases of a foreclosure; pre-foreclosure/short sale, auction, and REO (real estate owned). In this article we will discuss the phases of a foreclosure and when, during the process, is the best time to make your foreclosure investment. A pre-foreclosure is the beginning. Payments are in arrears at least 90 days. The clock is ticking. The first 90 days, only the homeowner and lender know what is happening. After 90 days, a notice of default or Lis Pendens is recorded at the county recorders office or register of deeds office. This is the beginning of a foreclosure called a pre-foreclosure. Before a property becomes a foreclosure is a good time to purchase the property. The property is still in the owners hands and they may be willing to work with you. First, you need to find them, contact them, ask questions, and do your homework. Only then, offer assistance. The homeowner still is in control. If there is equity in the property, work with the owner to take an equity position. If there is no equity, work with the lender. Negotiate with the lender to buy the property for less than what is owed (short sale). This can help the homeowner avoid foreclosure and possibly help them avoid any more damage done to their credit. Bank gets rid of a bad loan and you make a profit on the resale. Win-win for everyone. The next step is a foreclosure auction. After the property goes into foreclosure, it then goes to auction. In order to purchase a home at a foreclosure auction, you need to make a minimum bid, pay off loan balance, all accrued debt, attorneys fees, and you are responsible for all costs. If someone is still living in the home, you are responsible to evict them. You are responsible for all repairs and repairing all damage. There are no inspections. You buy the house as is. If the house does not sell in the auction, it reverts back to the bank. The lender now has the right to sell the property as an REO (real estate owned), the third and final phase of a foreclosure. What does this mean? An REO is the simplest way to purchase property. It is a good investment for the first-time homebuyers and investors. An REO property allows you to gain access to the property for an inspection. Lenders have a responsibility to their shareholders and they lose money on non-producing assets. So, they want a quick sale. They are able to provide 20% to 30% savings. All liens and back taxes removed. They are able to negotiate on rehab costs, interest, closing points, and loan amounts. They may allow a less than normal down payment. If there are tenants, the lender will evict them. You dont have to. 100% risk free. There are pros and cons to all three ways. However, the safest way is for you to do your homework. Know the property inside and out. Research everything about the property. Then, when you have done your due-diligence, you can make an educated decision and make your foreclosure investment. Kimberly Ann
When,Make,Foreclosure,Investme