Home » Finance » Investing

Foreclosure how to buy property way below today's current price

Jul 21, 2008
You can make a lot of money learning about foreclosure how to buy foreclosed homes way below market price. Today's home mortgage crisis has become a national problem. Foreclosure rates on home mortgages are at all time high levels. When a homeowner is foreclosed on, it creates devastation and heartache for the homeowner. It also creates an opportunity for foreclosure investors to make a profit if they know how to buy foreclosed homes and resell them.

Foreclosure investing is not preying on the weak,quite the opposite by buying the property from the home owner before it is foreclosed on and their credit is ruined your helping them make a new start. The homeowners obviously don't want their home to be foreclosed. They not only lose their home but they also severely damage their credit rating. The banks and mortgage companies don't want to foreclose on homes, because they stand to lose a great amount of money on the loan.

Banks and mortgage companies are in the lending business, not the property management business. When a bank or mortgage company forecloses on a property, they do not gain an asset, they lose capital. Their capital is tied up in a property instead of being put to work and making more money. Banks and lending companies want to free up the capital that is stagnant in the property, and re-invest it in new loan.

Foreclosure is when a mortgage lender gets a court to terminate the borrows equitable right of redemption. This happens after the borrow defaults on the loan. There are a lot of legal twists and turns that go along with the foreclosure deals, but one thing is perfectly clear. It is a stressful and sad time for those involved.

It is advisable that if you think you are going to default on your payments or have already, that you should talk to your lender a soon as possible. If you are already behind and don't see any relief in site, you may want to speak to an attorney or financial advisor. Who will help you find a solution and inform you of you rights.

So, what if you are not having a mortgage crisis? Will the nation's high foreclosure rate affect you? Well, it could. It depends on where you live and if there are a high number of foreclosures in your area. This high rate can cause neighborhood home values to drop a great deal. However, it doesn't have to be all doom and gloom. If you are not behind on your payments, just sit tight. The housing market run's in cycle's and will bounce back.

Due to this crisis, a new trend has emerged. People are popping up everywhere wanting to know about bank foreclosure properties. And what are bank owned properties? Sometimes when a bank foreclosure sale auction has failed to sell a bank owned foreclosure and now the bank is stuck with a property that no longer has a mortgage.

You can try your county website to find the bank owned properties for sale in your area. Most of these properties can be purchased at auction or through private negotiations with the owners and their banks. Be warned that many of these properties need to be purchased with certain guidelines to the sale, such as buying as is, sight unseen, with proof of meeting the financial obligation of purchase, and requiring some or all of the purchase price up front as cash.

A real estate investor will buy the property from the owner paying off the rest of the owners mortgage do any improvements and repairs to resell the property for it's highest profit potential. OK sounds great, so how do I find foreclosure properties. You can just head on down to the county court house where foreclosure properties are a public record. You could also call your bank or credit union about any properties they have loans on that are moving toward foreclosure. Try a friendly real estate agent with experience in buying foreclosure property. Try an online foreclosure listing service like Realty Trac or maybe Foreclosure.com you could even checkout the "online resources" page of foreclosure how to buy.com
About the Author
REO investing is very lucrative if done the correct way. If your searching for more information on foreclosure investing delivered right to your inbox then click here. or go to Foreclosure how to buy.com for more articles.
Rating:
Please Rate:
(Average: Not rated)
Views: 168
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources