Tuesday, October 09, 2007
FORECLOSURE SALES NOT FOR EVERYONE
With the rise in foreclosures, buyers are becoming more interested in this market to acquire below market properties. But they are not for everyone. If you are not educated in the process and not ready to compete with professional investors, I recommend looking for a short sale a REO (real estate owned - by a bank) or just a good deal in the regular market. In a short sale, the homeowner attempts to avoid foreclosure by working with the lender to accept a sale offer that is less than the total amount due on a home's mortgage. A REO is a property that went through the foreclosure auction and the bank had to buy it back. This can be your best priced property. Remember, in a down market it is not likely to acquire a foreclosure and make money with a "quick flip".
At auction in the courthouse there is strong competition with smart investors who know the property and have the funding available. If you still wish to work a foreclosure, I recommend working in the pre-foreclosure stage where the bank (mortgage firm) has filed in the courthouse and notified the owner. By approaching the owner and working out a win-win for both parties, this can be the least risky way to acquire the property.
See other articles in this blog identifying the stages of foreclosure.
At auction in the courthouse there is strong competition with smart investors who know the property and have the funding available. If you still wish to work a foreclosure, I recommend working in the pre-foreclosure stage where the bank (mortgage firm) has filed in the courthouse and notified the owner. By approaching the owner and working out a win-win for both parties, this can be the least risky way to acquire the property.
See other articles in this blog identifying the stages of foreclosure.
