Author Archive
Investing with HUD Properties
What Is HUD?
The United States Department of Housing and Urban Development, often abbreviated HUD, is a Cabinet department of the United States federal government. Although its beginnings were in the House and Home Financing Agency, it was founded in 1965 to develop and execute policy on housing and cities. It has largely scaled back its urban development function and now focuses primarily on housing. Another program the department offers is sponsoring mortgages so that low- to mid-level income individuals can purchase a home. Read more …
Buying Foreclosures at Auctions and Trustee’s Sales
There are many reasons that a home may go to foreclosure auction, also known as a trustee’s sale:
- Defaulted mortgage payments
- Seizure by IRS because of tax non-payment
- Nonpayment of real estate tax
- Probate after death
- Property abandonment or condemnation
Auctions are the riskiest way to buy foreclosures and should be used only when the investor has obtained experience and fully understands the foreclosure investing business. Read more …
Financing Options
After you have conducted all of your research and found possible properties, it’s time to choose which ones you want to invest in and how you’re going to purchase them. Obtaining financing for foreclosure properties, Bank-Owned (REO) properties and properties headed to foreclosure can be a bit tricky. Some lenders will not finance mortgages for properties that are in foreclosure. As an investor, it’s important to know what options are available to you and which ones will give you most efficient results. Read more …
Locating Pre-Foreclosure Properties
Pre-foreclosure properties are an excellent investment opportunity for both new and experienced investors. While it may take a little more work to find them, they are worth the effort! Use this information to get started on your search for properties near you. Read more …
How to Find a Real Estate Agent
Dependable Agent = Results
The key to making your investment processes smooth and reliable is a dependable agent. There are many sources you can use to find a quality real estate agent that can work with you to help obtain the best deals on foreclosure properties. Here are some key factors to consider along with steps to find an agent that you can develop a long-term investment relationship with. Read more …
Negotiating Short Sales
Many investors don’t want to spend the time on short sales because their up front costs can make the deal less lucrative. However, with some skill and research, you can negotiate a deal that works for you, the homeowner and the lender. There are three main steps when negotiating short sales. Read more …
Finding Short Sales for Investing
What is a Short Sale?
Short sales occur when the mortgage balance is more than the value of the property. If the home were to be sold, the selling price would not be enough to pay off the mortgage. If the sellers are unable to pay the difference, the lender may, or may not, agree to accept less than the total amount. If the lender agrees to accept less, this results in the lender being shorted, hence the name short sale.
While these properties look appealing to many buyers because they think they are getting a deal on a home, it is not always the case. From the perspective of an investor - choose your properties wisely and consider the time and effort as compared to the possible profit before pursuing these properties. Read more …
Investing with REO Properties
REO Properties
An REO is a property that is ”real estate owned” by the mortgager. These properties begin as foreclosures, but unfortunately, the lack of equity in the home makes the price higher than the home’s value and no one bids on them when they go to auction. When there are no bids placed on the property, as often happens, they become property of the mortgage company. Read more …
Current Foreclosure Market Conditions
What’s Happening in the Foreclosure Market?
As we see the mortgage crisis continue, the number of foreclosures on the market continues to rise. In the release of September 2008 RealtyTrac’s U.S. Foreclosure Market Report, there was a decrease of 12 percent from the previous month but still a 21 percent increase from this time last year. A large reason for this decrease is the changes in state laws that are slowing the rate at which lenders can go forth with foreclosures. While the impact of new state laws are starting to take effect, there are still an alarming number of homes in pre-foreclosure or already foreclosed. Below are the top states for the highest and lowest total number of foreclosures, as well as the rates of foreclosure. Read more …
Introduction to Foreclosure Investing
Everyone wants to buy a house for nearly nothing, fix it up with little to no out-of-pocket cost, and sell it for a huge profit. Sounds great, right? While this exact scenario may not happen, it is possible to make money investing in foreclosures, but you need to know what you’re doing. A lot of the success will come with experience, so you may need to pay your dues before you strike it rich. In the meantime, here are some tips and some advice to get you started on a successful path. Read more …