Thursday, August 31, 2006

Profit From The Real Estate Bubble: Invest In Foreclosures

How To Buy Foreclosure

There may be only one slogan for people interested in real estate investments. “Buy on time, buy quick”. This is how to buy foreclosure. Real estate investment is about being smart and taking opportunities as they fall.

A Homeowner Sale May Be More Favorable

You may have to move at the right time because many distressed homeowners would want to dispose of their buildings at a bargain. If the lender takes over the foreclosure process, then he will mark the price at the market value because of his in-depth knowledge about how to buy foreclosure.

Get Reliable Information

Every business has its own information sources. One smart way about how to buy foreclosure is to rely on information from reputable sources such as newspapers or online lists. Alternatively, you can contact real estate brokers, attorneys, county recorders or title insurance officers. These people have the competence, experience and professional acumen to advise of credible listings of upcoming foreclosures.

Enter Into Discussions With The Homeowner

If you get to know about a distressed property, try to see the owner and enter into discussions with him before the lender does. Advise him on the imminent foreclosure and how he can redeem the property and avoid a taint on his credit rating by making the property available to you. Here you can make a bargain and get property well below the market price.

In such instances, it is advisable to extract as much information as possible to know the homeowner’s real equity as in many cases the homeowner has no equity at all after mortgaging the entire property out.

At The Foreclosure Auction

Should you miss the opportunity to buy from the homeowner, you can still acquire the property at the auction sale. As a further tip on how to buy foreclosure at the auction, you will be better of if you exercise a great deal of discretion especially if you are a beginner. Before you arrive at the auction, make sure that you have studied the background of the property and have satisfied yourself about title, cost of repair, remaining equity, competing interest, etc. The reason is that, after the acceptance of your bid you cannot reverse your decision. You are bound to purchase the property as it is.

After The Auction

Even if you are unable to get an auction and ownership of the property reverts the lender , you still have the chance to acquire the property as many lenders will not want to keep the property but dispose of them at a margin. This is how to buy foreclosure in this situation : Determine the market price of the property and if you can make some profits after taking way repair costs, you can contact the lender and then negotiate a price based on your market findings.

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John Appleseed is contributor to, where his insider knowledge of Bank REO strategies are freely shared.

Monday, August 07, 2006

Where will the Bubble Burst ?

It's the big question everyone is waiting for, where will the bubble burst? With Continued interest increases, a slowdown of home value appreciation and a shift from a seller's market to a buyer's market, the big question among consumers and the real estate industry today is what will happen when the the real estate bubble bursts.

Let's put it this way, instead of telling you how and where the bubble will burst, let's examine how or why it's possible that the bubble will burst.

1. In Recent years, with low interest rates, the Average homeowners have taken advantage of low rates to puchased homes they otherwise could not afford

2. The Majority of this owners bought homes with Low Rates, no money down and interest only loans.

3. Many of this buyers are in overvalued markets such as California and New York and have believe that real estate appreciation will continue to rise yearly in double digit figures.

4. Rise in Potential defaults because of rising interest rates in areas of overvalaution should be factor when buying a home.

5. The Largest correction will occur in states with middle or high end properties that has experienced rapid real estate appreciation.

6. Lower end properties will remain a strong market.

7. States with low real estate appreciation will see little corrections.

8. Increased in Foreclosures are usually attributed to a slow economy - but what we see today is because of overbuying of property as a result of low interest rate.

9. The Bubble has burst from a homeowner who are walking away from a huge deposit on a home where the value has declined or where they been unable to sell the property at a suffiecient price to complete the transaction.

10. The Homeowners more likely to be at risk are those who experienced little appreciation last year and have stretched their mortgage payments beyond the 35% income to mortgage ratio.

11. As ARMs begin to convert, more and more homeowners will find themselves in trouble.

12. The Rise in active home inventory is a strong leading indicator that the foreclosure rates may soon start to escalate, thus leading to slow or decrease home values.

Foreclosure Information

Sunday, August 06, 2006

Foreclosure Hotspots

Top Ten Foreclosure Cities

1. Indianapolis Indiana
2. Atlanta Georgia
3. Dallas Texas
4. Memphis Tennessee
5. Denver Colorado
6. Detroit Michigan
7. Kacksonville Florida
8. San Antonio Texas
9. Canton Ohio
10. Las Vegas Nevada

Top Ten Foreclosure Counties

1. Wayne County Michigan
2. Dallas County Texas
3. Shelby County Tennessee
4. Tarrant County Texas
5. Marion County Indiana
6. Fulton County Georgia
7. Harris County Texas
8. Cuyahoga County Ohio
9. Dekelb County Georgia
10. Franklin County Ohio

Foreclosures in the USA are still climbing up and I am expecting
it to still climb up until maybe next summer.

Wednesday, August 02, 2006

Why Buy Pre Foreclosures?

Have you ever heard of the term pre foreclosure? Do you think that this means the same thing as a foreclosed property? If you answered yes to these questions you are not alone. But at the same time, if you answered yes you are not familiar with the advantages of buying pre foreclosures.

Pre foreclosures are properties that are in the final stage before they are taken back by the bank or lender. This means that the owner is still in charge of the property, but if they do not make any attempt to rectify their situation the bank or financier will repossess the home.

There are many benefits in buying pre foreclosures. The reason that most people miss out on these homes is because they do not know what they are, or how to find them.

The number one advantage of pre foreclosures is the lower price associated with such properties. The owner has to sell the house before the bank or lender takes it and is more inclined to listen to any offers that they receive. It is quite possible to find pre foreclosures that are up to 50% off of the market value.

In addition to the bargain that you can get on pre foreclosures, you will also be able to deal directly with the owner. This is an advantage because the buyer is in control during a pre foreclosure deal. If the home owner turns down your offer and fails to find another buyer, they will end up losing everything. If they manage to sell the home they can at least end up making back some money.

Finding pre foreclosures can be done in the same way as locating homes that that bank already owns. You can find them in the newspaper, online, or by calling the lender directly on the phone. It is really up to you, and you can base it on what seems to be most effective.

Compared to foreclosed properties, you would normally face less competition with pre forecloses. This increases the chance of getting a great price and ending up with the home of your choice.

If you are looking for a new home, don’t forget to check out these properties. Buying pre foreclosures can be very profitable.

About the Author:
Ken Fong Terra Bites of Real Estate Information

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