Foreclosures
According to the Merriam-Webster dictionary foreclosure is defined as a legal proceeding that bars or extinguishes a mortgagor's right of redeeming a mortgaged estate.This proceeding is obviously no fun for the person who is going through it, However there are upsides to going through a foreclosure ranging from saving money to providing the atmosphere of a new beginning,none the less it still is obviously no fun.
Why so many foreclosures?
There are many different reasons for the massive foreclosures across the country, However there is none more convincing than fraudulent acts perpetuated by crooked loan officers,and naive would be home owners excited with the thought of actually owning a home.The would be home owners are duped into a adjustable rate with a teaser for the first couple of years then "boom" it goes up making the mortgage unbearable for the homeowner.
Can you make money purchasing homes that have been foreclosed?
Absolutely there is a great deal of profit in shopping for property that has been foreclosed on and is now owned by the bank. The bank is usually eager to get rid of the property,and will sell the property below market value making the purchase profitable for someone in a position to buy the property.there of course are difficulties that can arise when making such a purchase some homes that go in to foreclosure are damaged before the home is vacated making it a headache for the person who purchases the property, however with that being said if you have the money and the resources you can easily flip the purchase for an immediate profit
Friday, November 16, 2007
Investing In Bank Owned Foreclosure Properties
Are you a new investor? If so, you have probably taken the first steps to being a successful investor. Now you are ready to take the final steps finding property and investing. Bank owned foreclosure property should be on the top of your list. This particular property is owned by the bank and is sometime referred to as REOs (Real Estate Owned). There are great advantages to purchasing bank owned foreclosure properties, and it seems that every investor wants to get a piece of this market. Consider purchasing a property listing. This list will contain information regarding properties that a bank owned, the asking price of the homes and other valuable information.
Before you go out and get started investing in bank owned foreclosure properties, you need to know what the advantages and disadvantages are. Otherwise, you could make a seriously bad investment and lose a lot of hard earned money.
The most obvious advantage is the asking price by the bank for the home. The home will be marked substantially lower than market value. This does not necessarily mean the home is in bad condition or not worth investing in. It is marked down because the bank wants to get rid of any foreclosed property they own as quickly as possible through a quick sale. The bank asking price for the property will be substantially below market value in order for this to happen. This is a great opportunity for an investment and hopefully the investor can resale the property and make twice that amount in return.
However, there can be a substantial downfall to purchasing bank owned foreclosure property.
Most individuals do not purchase anything without inspecting the item. If you went to a store to buy new clothes, even if the clothing is on the clearance rack, you would inspect for flaws. Well, foreclosure bank owned property is typically sold as is. If you do not have the opportunity to inspect the property first any errors to the home will become your costly expense. This is truly one great disadvantage. Most home owners who lose their home are furious. They may have invested thousands of dollars into making the home large by adding rooms or an extra bathroom and due to unseen circumstance have now lost their home. Some will go as far as damaging the home or taking everything they have put into it out. New sinks, ovens, ceiling fans, toilets and more. Its theirs and they want it. This leaves the home with substantial damages, costly damages.
Some states require the bank to provide all buyers a disclosure with a summarize discovery of property damage. Such as, damage to the roof, plumbing issues or electric problems. This disclosure is valuable to investors and home buyers alike. Discuss this option with the bank that you are working with. If they are not lawfully required to provide you with a disclosure ask if you are allowed to have the home expected and how much time you have to do so. Some bank owned properties are not available fore inspections or your viewing. If this is the case it may be wise to just drive around the neighborhood of where the property is located. Talk to neighbors and get an idea about the people who once lived there. You never no, someone may have seen the property before repossession.
However, you need to remember that investing comes with its advantages and disadvantages. This is a risk most investors are willing to take, because the rewards are well worth the investment.
Yes, it is possible to make good money by investing in foreclosure properties, but you need to know what to do or you can lose a lot of money quickly. For more information, go to http://www.wcf-ltd.com/foreclosure/ to learn some great techniques to save money when investing in foreclosure properties.
Article Source: http://EzineArticles.com/?expert=Sydney_Heiden
Before you go out and get started investing in bank owned foreclosure properties, you need to know what the advantages and disadvantages are. Otherwise, you could make a seriously bad investment and lose a lot of hard earned money.
The most obvious advantage is the asking price by the bank for the home. The home will be marked substantially lower than market value. This does not necessarily mean the home is in bad condition or not worth investing in. It is marked down because the bank wants to get rid of any foreclosed property they own as quickly as possible through a quick sale. The bank asking price for the property will be substantially below market value in order for this to happen. This is a great opportunity for an investment and hopefully the investor can resale the property and make twice that amount in return.
However, there can be a substantial downfall to purchasing bank owned foreclosure property.
Most individuals do not purchase anything without inspecting the item. If you went to a store to buy new clothes, even if the clothing is on the clearance rack, you would inspect for flaws. Well, foreclosure bank owned property is typically sold as is. If you do not have the opportunity to inspect the property first any errors to the home will become your costly expense. This is truly one great disadvantage. Most home owners who lose their home are furious. They may have invested thousands of dollars into making the home large by adding rooms or an extra bathroom and due to unseen circumstance have now lost their home. Some will go as far as damaging the home or taking everything they have put into it out. New sinks, ovens, ceiling fans, toilets and more. Its theirs and they want it. This leaves the home with substantial damages, costly damages.
Some states require the bank to provide all buyers a disclosure with a summarize discovery of property damage. Such as, damage to the roof, plumbing issues or electric problems. This disclosure is valuable to investors and home buyers alike. Discuss this option with the bank that you are working with. If they are not lawfully required to provide you with a disclosure ask if you are allowed to have the home expected and how much time you have to do so. Some bank owned properties are not available fore inspections or your viewing. If this is the case it may be wise to just drive around the neighborhood of where the property is located. Talk to neighbors and get an idea about the people who once lived there. You never no, someone may have seen the property before repossession.
However, you need to remember that investing comes with its advantages and disadvantages. This is a risk most investors are willing to take, because the rewards are well worth the investment.
Yes, it is possible to make good money by investing in foreclosure properties, but you need to know what to do or you can lose a lot of money quickly. For more information, go to http://www.wcf-ltd.com/foreclosure/ to learn some great techniques to save money when investing in foreclosure properties.
Article Source: http://EzineArticles.com/?expert=Sydney_Heiden
Investing In A Land Foreclosure Property
Have you ever imagined owning a piece of land and building your dream house on it? Choosing where and how? Deciding if you want near neighbors or not? If so, investing in land foreclosure property may be the right choice for you.
Land foreclosure is property that was once financed, and due to default payment of the loan, repossessed by the lender. However, the lender does not want to sit on the property. The land foreclosure property will be marked below appraisal value in order to get the property sold quickly. The longer the lender has possession of the property the more money that will be lost. The lender will be responsible for any new taxes or old taxes on the property. Due to these facts the lender wants to get the land sold as quickly as possible. This is a great opportunity for new home buyers and investors.
There are three types of land foreclosure sales: pre foreclosure, foreclosure auction, and lender owned sale. But how do you know what are the differences between the three?
Pre foreclosure means that the process of the land foreclosure has begun but is not finalized. This gives the original owner a chance to redeem his or her name with the bank. He or she can do this by either paying the defaulted amount of the loan or selling the property to pay off the loan. It is during this time frame that investors and property buyers have the best opportunity to get a significant deal on the property. The owner is facing an ultimate crisis and is on the verge of losing the property, ruining his credit, and other financial burdens. For this reason he or she will be prepared to accept any help that is reasonable.
By purchasing the property during the pre foreclosure period, an investor can save up to thirty percent off the appraised value. Also, the investor gets the ability to inspect the land before making an offer, and this should not be overlooked. It is always in the investor's best interest to have financing pre approved before discussing purchase with the property owner. The property owner may not want to discuss any offers if financing is not already pre approved.
A foreclosure auction is final process of land foreclosure, and the ownership of the land has reverted to the lending agency. You need to keep in mind that purchasing land from an auction requires an investor to be educated on the process, and can make the difference between making a profit and losing money. There are two major downsides to purchasing land at a foreclosure auction: one, the property now cannot be inspected, and two, payment for the land is expected at the time of auction.
A lender owned sale is different type of land foreclosure sale. The lender has ownership of the land and will sell the property in a more formal sale at a lower price in order to minimize their risk. However, an investor can expect to save at least twenty percent of appraised value on property.
Regardless which method the investor uses, investing in land that has been foreclosed on is a great way to save a lot of money. Keep in mind, anyone can invest in a land foreclosure sale, but a smart investor is an educated investor. Do the research and homework before investing and it can pay great dividends.
Yes, it is possible to make good money by investing in land foreclosure properties, but you need to know what to do or you can lose a lot of money quickly. For more information, go to http://www.wcf-ltd.com/foreclosure/ to learn some great techniques to save money when investing in foreclosure properties of any type.
Article Source: http://EzineArticles.com/?expert=Sydney_Heiden
Land foreclosure is property that was once financed, and due to default payment of the loan, repossessed by the lender. However, the lender does not want to sit on the property. The land foreclosure property will be marked below appraisal value in order to get the property sold quickly. The longer the lender has possession of the property the more money that will be lost. The lender will be responsible for any new taxes or old taxes on the property. Due to these facts the lender wants to get the land sold as quickly as possible. This is a great opportunity for new home buyers and investors.
There are three types of land foreclosure sales: pre foreclosure, foreclosure auction, and lender owned sale. But how do you know what are the differences between the three?
Pre foreclosure means that the process of the land foreclosure has begun but is not finalized. This gives the original owner a chance to redeem his or her name with the bank. He or she can do this by either paying the defaulted amount of the loan or selling the property to pay off the loan. It is during this time frame that investors and property buyers have the best opportunity to get a significant deal on the property. The owner is facing an ultimate crisis and is on the verge of losing the property, ruining his credit, and other financial burdens. For this reason he or she will be prepared to accept any help that is reasonable.
By purchasing the property during the pre foreclosure period, an investor can save up to thirty percent off the appraised value. Also, the investor gets the ability to inspect the land before making an offer, and this should not be overlooked. It is always in the investor's best interest to have financing pre approved before discussing purchase with the property owner. The property owner may not want to discuss any offers if financing is not already pre approved.
A foreclosure auction is final process of land foreclosure, and the ownership of the land has reverted to the lending agency. You need to keep in mind that purchasing land from an auction requires an investor to be educated on the process, and can make the difference between making a profit and losing money. There are two major downsides to purchasing land at a foreclosure auction: one, the property now cannot be inspected, and two, payment for the land is expected at the time of auction.
A lender owned sale is different type of land foreclosure sale. The lender has ownership of the land and will sell the property in a more formal sale at a lower price in order to minimize their risk. However, an investor can expect to save at least twenty percent of appraised value on property.
Regardless which method the investor uses, investing in land that has been foreclosed on is a great way to save a lot of money. Keep in mind, anyone can invest in a land foreclosure sale, but a smart investor is an educated investor. Do the research and homework before investing and it can pay great dividends.
Yes, it is possible to make good money by investing in land foreclosure properties, but you need to know what to do or you can lose a lot of money quickly. For more information, go to http://www.wcf-ltd.com/foreclosure/ to learn some great techniques to save money when investing in foreclosure properties of any type.
Article Source: http://EzineArticles.com/?expert=Sydney_Heiden
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