August 2010 Monthly Archive
August 30, 2010
Subject to refers to a real estate agreement which allows buyers to take over mortgage payments through assignment of ownership rights. This strategy can be used by individuals who do not qualify for traditional lending and is sometimes used by real estate investors to obtain properties from individuals facing foreclosure.
Subject to is also referred to as Sub2 and Subject 2. Individuals who desire to conduct additional online research should utilize all three references to maximize available information. Subject to transactions can provide benefits to all parties involved. However, this type of transaction is best handled by a real estate lawyer to ensure proper documents are submitted through the courts and legal contracts drafted to protect all parties involved.
August 23, 2010
An excess of foreclosure property could be the yellow brick road to the pot of gold for savvy real estate investors. A recent report published at CNNMoney.com deems investors who sweep in to purchase distressed properties as 'vulture investors', but in reality these individuals have learned how to capitalize on a downturned market.
Foreclosure property can consist of single- or multi-family residences, commercial real estate, or raw land. Previously, investors purchased foreclosure real estate primarily for the purpose of house flipping. Today, these properties are being purchased as rental homes to accommodate the millions of homeowners who lost their home to foreclosure and incapable of qualifying for mortgage loan.
August 16, 2010
Foreclosure auction refers to selling real estate at public auctions so banks can recover financial losses associated with the foreclosure process. While it is true real estate can be purchased below market value, buyers should take time to understand the process involved and engage in due diligence prior to placing bids on distressed properties.
A foreclosure auction usually takes place at a public location such as county fairgrounds and local courthouses, but can also occur at the property being auctioned. Public auctions offering multiple homes for sale allow buyers the opportunity to scout out potential deals.
August 09, 2010
Real estate buying bank owned refers to purchasing properties that have been repossessed by mortgage lenders. Bank owned properties consist of foreclosure real estate that did not sell through public auctions or were held by lenders until market conditions improved and could be sold at a higher price.
Real estate buying bank owned has become a popular strategy amongst real estate investors, home buyers, and business owners looking for cheap commercial properties. Bank owned foreclosures are often priced upwards of 20- to 30-percent below appraised value. Properties are sold directly through each bank's loss mitigation division or their assigned realtors
August 03, 2010
Subject 2 is a type of real estate financing strategy that allows individuals with bad credit buy a house by taking over the property owner's mortgage loan. Also known as "Subject To" and "Sub2", this home buying option has become quite popular amongst real estate investors and buyers who need to quickly sell their home.
Subject 2 is perfectly legal and can be used by individuals wanting to buy a house; sellers needing to sell their real estate fast but unable to locate a qualified buyer; or real estate investors wanting to add additional investment properties to their portfolio.