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The Three Stages of Foreclsoure Investment



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By : Joe Safieh    99 or more times read
More millionaires are created today acquiring foreclosure assets. There are thousands of properties that get foreclosed every month and this provides a gateway for a very profitable earnings. You will find numerous cycles where you be able to obtain foreclosure properties and have to understand the break presenting itself and how to reap the greatest earnings in each stage.

A homeowner generally gets delinquent in paying their monthly mortgage. This results in the mortgage company notifying mortgagee of their non payments a month after doing so if the account is not brought current that and begins the foreclosure process. In non judicial where the financier does not have to get a ruling to foreclosure the asset requires a one month public notice in the county newspaper where the property sits in. At this point the property can be purchased through a short sale.

A short sale is offering the loan provider an amount which is less than the loan amount due on the loan and the loan provider approving the sale while taking a loss. Then mortgage company may choose to sue the homeowner after the short sale to cover their loss through what is recognized as a deficiency judgment. The general rule of thumb of what a financier will agree to as far as cash amount of a short sale is eighty percent of the current property value.

The next stage of buying a foreclosure is at the auction itself. During this point, the investor has to have cash in the amount of their bid and very few lenders actually provide financing during this cycle. The attorney cries the bid at the delinquent loan amount. After the bidding begins you will find no bidders at the beginning amount, the asset becomes a financier owned property known as an REO (Real Estate Owned).

Last cycle of acquiring a property is directly from the lender after it has passed through the previous two opportunities. Now the bank is usually more desperate to liquidate because no short sale took place and no bidders purchased at the auction. The acquiring of REOs is more flexible as now you have the time in getting financing for the deal, you are not dealing directly with a troubled home owner, and the mortgage company is more accommodating on the price.
Joe Safieh holds a Real Estate Brokers License in Georgia, Joe Safieh is focused in foreclosure assets and the art of foreclosure buying, Joe Safieh has facilitated ventures in excess of $150,000,000 during his 10 years in the real estate industry, for a meeting with with Joe Safieh for your real estate needs go to www.liberty-brokers.com or you may drop a line to Joe Safieh by email jsafieh [@] gmail dot com.
Profit from foreclosure investment and follow Joe Safieh on facebook. www.facebook.com/joesafieh


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