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 www.lenderforclosures.com, where his insider knowledge of Bank REO strategies are freely shared.