Real Estate Foreclosure Investing is it a good deal anymore? What you need to know!
Real estate foreclosure rates have skyrocketed to unprecedented numbers and created a devastating economic fall-out. Real estate foreclosure isn't limited to homeowners. It also affects real estate investors, business and cooperative programs, farmers, business owners, banks and lending institutions.
Real estate foreclosure can be devastating to anyone facing the loss of their property. However, there are solutions available to individuals who have become delinquent on their mortgage payments. While these solutions may or may not allow the Borrower to retain their property, they can ease the financial burden and lessen the pain of the foreclosure process.
There are three stages of real estate foreclosure: pre-foreclosure, foreclosure and post foreclosure.
Pre-foreclosure is the stage where Borrower's have an opportunity to renegotiate their loan. This might be accomplished through a Forbearance Agreement or Loan Modification.
Post Foreclosure is the stage where the lender takes possession of the real estate and places it for sale at auction. If no qualified bids are placed on the property at auction, it is returned to the bank and becomes Real Estate Owned (REO) property.
Real estate foreclosure is handled through the bank's Loss Mitigation department. This department works with individuals who are facing foreclosure. Their role is to help distressed Borrowers develop a plan to save their real estate from foreclosure. They also work with real estate investors interested in purchasing REO properties.
Real estate foreclosures can be a dream come true for investors, but they aren't without risk. It's important to understand the difference between short sales, foreclosure and real estate owned properties. Each comes with its own set of pros and cons.
Purchasing distressed properties from private real estate investors is an excellent way to achieve instant equity, even in today's unstable market. The key is to seek out investors who specialize in purchasing REO bank portfolios. These savvy investors purchase real estate in bulk at wholesale pricing. Doing so allows them to resell the property under market value and still earn a profit.
It is still possible to obtain the American dream of home ownership. Real estate foreclosures provide plenty of opportunities for great deals. All that is required to find them is patience and time.
If you are in the market for real estate bank foreclosures, subscribe to Simon Volkov's complimentary Real Estate Investments list. Subscribers automatically receive free updated listings of all investment opportunities available.
Published on July 20, 2008 at 05:18 PM | Comments: 3
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