Category Archives: How to Buy Foreclosure

Dec 03

Foreclosure Investing: Telephone Magic

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Are you afraid of the telephone?

You would be surprised to find out that many people do not even attempt foreclosure real estate investing because they are afraid of making a telephone call.  If that is you, I have some great news for you.

I am going to take away the phone fear for you at absolutely no charge.

Welcome to the next installment of Matthew Griffin’s 7 Foreclosure Secrets where I am giving away information that is currently being sold on other websites.  Why am I doing this?  It’s very simple; once you see how easy it is to make money in foreclosure real estate investing, I believe you will come to me for your educational needs.  Simply visit my website at http://www.foreclosureprofitsnow.com/.

Would you like to know how to pick up the phone and call a homeowner to discuss purchasing their property without being afraid?  I’m going to tell you.  In fact, what I am about to do is unprecedented.

I am going to tell you exactly what to say.  It’s called a telephone script and some people would charge you hundreds of dollars for it.  I’m not only going to give a script to you for free, I’m going to give you two of them.

All you have to do to work some Telephone Magic is obtain the telephone number of a prospective homeowner and, after practicing a few times, repeat the words contained in one of the following two scripts:

  • Script one.  Hello, my name is NAME and I would like to speak with HOMEOWNER NAME, please.  [After the homeowner gets on the phone with you, say] I am calling you today because we work with people who are facing challenges with their mortgage.  The company that holds your mortgage has filed legal documents with the county to begin proceedings to take your home away from you.  These documents are public record, and that’s how we found out about your situation.  We have worked with people facing this exact same issue for many years, and would like to discuss some possible solutions with you.  We may be able to help you obtain a forbearance, sell your home, find a cash buyer for your home, or take other creative steps to stop the legal proceedings and keep any foreclosure off of your credit report.  We would like to schedule a free, no obligation consultation to discuss possible solutions to this situation.  May I set up a time for us to come meet with you?
  • Script two.  Hello, my name is NAME.  I have been looking to purchase a home in this area and heard that your house might be for sale.  When I drove by to look at it, however, there was no sign in the yard.  Is your home on the market?

As you can see, you don’t have to be afraid of talking on the phone.  Simply go over these scripts until you are able to say them smoothly and confidently.  Feel free to put things in your own words.  You don’t want the homeowner to realize you’re reading something, so do your best to sound natural.  You may want to print out the script and use a highlighter to highlight certain words and phrases as sort of an outline.  That way you can say things in your own words, but if you need help, you can refer back to the script.  After you have made a few phone calls, you will find that you don’t need to use scripts anymore.  You will have overcome your fear completely.

Was fear of talking on the telephone standing between you and financial security?  Are you not living the lifestyle you desire because you thought it was too hard to successfully invest in real estate?  If so, your worries are over.

I encourage you to investigate for yourself the many advantages of successful real estate investing.  If you would like additional information, including the other installments of Matthew Griffin’s 7 Foreclosure Secrets, please go to http://www.foreclosureprofitsnow.com/.

Matthew Griffin

Nov 23

Buying a HUD Foreclosure Property

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Department of Housing and Urban Development or HUD foreclosure properties are readily available across the USA.  However the process for purchasing such a property is not the same as when buying a home from an individual.  So it is important that you read through this article before you make any decisions to go and purchase a HUD foreclosure property as an investment opportunity.

So what is a HUD property?
If a property has been purchased with a loan that is insured by the FHA (Federal Housing Administration) then the lender can file a claim with them for the balance which is due on the mortgage.  The FHA will then pay the lender’s claim and ownership of the property is transferred to HUD who is able sell the home.

How much do you expect to pay for a HUD property?
Such properties will be appraised and priced at what is considered a fair market value for the property for where it’s located.  Any home that is in need of repairs will have its price adjusted downwards in order to reflect any investment that the new owner will have to make to improve the property.

What one should remember if looking to purchase a HUD foreclosure as an investment opportunity is they are sold as seen and the new owner is responsible for all repairs and improvements that are required.

Where do I find a HUD property?
The best way to view any HUD listings is to follow the state links on the HUD’s website.  However it may take a while as each state’s internet destination is set up differently, so take some time to browse their search engine and its layout.

Once you have located a HUD foreclosure property that you would like to see then all you need to do is contact any HUD approved real estate office to arrange an appointment.  These real estate agents can also be found on the HUD website.

To purchase a HUD home can I just simply make an offer for it?
Unfortunately HUD foreclosures are sold using a bidding process and there is a period (Offer Period) of time in which sealed bids can be accepted from an agent.  At the end of the offer period all the offers are opened and generally the highest bid is the one that will be accepted by HUD or they may decide to accept the bid which brings them the highest net profit.

If a home remain unsold after the initial offer period then are bids opened as they are received?

Normally when a bid is accepted you will be notified by your agent within a day or two of the expiry of the offer period and you will be issued with a settlement date (usually 30-60 days from the date when your contract was accepted).  On such sales HUD will pay real estate agencies fees of up to 6% for any homes that are sold so be aware that in order for the selling agent to be paid they must insert the wording in their contracts that verifies that HUD will pay their commission on a HUD foreclosure sale.

Nov 10

Foreclosure Investing: No Cash, No Credit, No Problem

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Did you know you can invest in real estate even if you don’t have a lot of money and your credit isn’t perfect?

Well, you can…and I want to show you how.

My name is Matthew Griffin and I am a real estate investor and author.  In fact, I offer a full course on foreclosure real estate investing that you can check out by going tohttp://www.foreclosureprofitsnow.com/.  But today, I am offering you one of my seven foreclosure secrets at absolutely no charge.

Why would I do this?

Because most people think that they have to have a lot of money or great credit before they can even think about investing in real estate; and this mindset simply isn’t accurate.  In today’s real estate market, there are many ways for an investor to control a property without going to the bank or to a traditional mortgage lender.  All you have to do is be able to “think outside the box.”

YOU can be a real estate investor TODAY without a fat bank account or a five-star credit rating.  Here’s how to do it:

  • Locate a property where the homeowner is facing a foreclosure situation because they’re unable to afford their mortgage payments.
  • Pick up the telephone, call that homeowner, and make an appointment to come over and discuss their situation.
  • Get that property under contract by explaining that you are a solutions provider and real estate investor who can help them get out from under their debt.
  • Sell that contract to another real estate investor and collect an assignment fee OR finance the deal through a hard money lender and sell the property yourself on the retail market.

YOU HAVE JUST INVESTED IN REAL ESTATE AND MADE A 
PROFIT WITHOUT TOUCHING YOUR OWN MONEY OR HAVING 
YOUR CREDIT REPORT CHECKED.

I provide all of the details on how to do this and much more in my educational programs.  Just visit my website athttp://www.foreclosureprofitsnow.com/ to learn more.

Think about the difference this investment strategy could make in your life.  Do you have enough money to live the lifestyle you always wanted?  Have you funded your retirement?  Do you have enough money to make your future secure?  If you’re like most people, the answer to these questions is no; but investing in real estate can provide you with the money you need to live your life free from financial pressure.

I am going to be offering all seven of my Foreclosure Secrets at no charge for a limited time.  I want you to see that real estate investing does not have to be complicated, difficult, or stressful.  YOU can be a successful real estate investor TODAY if you’ll take the time to learn the right way to do it.

Be sure and look for the next installment of my series on 7 Foreclosure Secrets so that you can learn profitable ways to invest in real estate.  In the meantime, I encourage you to investigate all of the educational resources available athttp://www.foreclosureprofitsnow.com/.  You’ll be glad you did.

Don’t put off your successful career in real estate investing any longer.  Get started TODAY!

Matthew Griffin

Oct 27

Buying Foreclosures

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Foreclosures have not been touched by the black plague; many are good options to look at when shopping for a home.  Sometimes they do need to be fixed up, but other times you can move into them right away. Despite the negative impression many buyers have, foreclosures can be a great way to buy a home and gain instant equity.

First, it is valuable to understand how a home becomes a foreclosed property. A simple definition is that someone borrowed money to purchase the home, and then stopped paying the money back (a.k.a. going into default on their mortgage). This allows the lender to take legal action and obtain ownership of the home to recoup their losses; and in turn causes the homeowner who was in default to lose any equity they had built in the home. You would think that banks would be happy to take the home to cover the money they loaned out; however it is bad for them to keep foreclosures on their books. To alleviate the problem lenders typically try to auction or resell the house as quickly as possible.

HUD (Housing and Urban Development) homes are also foreclosed properties. They are different from normal foreclosures because the lender for the loan was a government lender such as FHA (Federal Housing Administration) or VA (Veterans’ Affairs). When owners with government loans go into default, HUD steps in to take over the property and try to resell or auction it.

Now you know what a foreclosure is, and you can consider foreclosed properties that catch your eye without fear of the unknown. Keep in mind that you should still go through all of the appropriate channels to check out the house structurally and functionally before you make a buying decision. This includes getting a proper home inspection. An inspection will point out any existing or potential problems and will allow you to factor in estimates for repairs that will need to be made to the home right away. These repairs may include plumbing or wiring, the roof, flooring, paint and so on. Making these calculations will help you figure out the amount of equity you will really end up with, and allow you to make the best decision financially.

As you continue your search for a home, remember that foreclosures can be a good investment for your family. By doing your research you can find and entertain more options then you might have realized that meet both your price and living space needs.

Content provided by 10x Media. Established in 2003, 10x Media provides innovative online marketing tools.It has expanded its online presence through networks such as Inside Real state, Inside Finances and Grab Real Estate, which contain thousands of pages for city and state specific real estate information across the nation.

Article Source: http://EzineArticles.com/?expert=Jennilyn_Bylund

Oct 02

Buying Foreclosure in Auction – Great Fortune

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Sure you know what an auction is. But do you know by buying foreclosures in auctions, you can actually earn up to 100,000USD; or save up to that amount if you are buying a foreclosure home for residential purpose? Of course, those profits happen with the conditions you have the resources needed.

Buying great foreclosure bargains in auction at local country house isn’t that easy at all. It’s not about how much you afford to pay, it’s about how much info you have and how well you use the info. Thus, doing research before stepping into the court house is very important. Find out the true value of a foreclosure home so that you know what your bidding limit is. For example, if the result of your research tells you that a foreclosure home’s market value is 200,000, after deducting the repair cost, let’s say 20,000, you will still be earning a great amount if you bid at 130,000 after the last and nearest bid of 100,000. Yes, it’s all about business in auction. You got the info, you got the money.

Thus, research the foreclosure home in detail. Check the neighborhood of the foreclosure home. Is it near a field? How far is the foreclosure home from town? Is there any factory near by? How’s the piping system? What’re the market current needs? These are factors affecting the market value of a property. And those are why foreclosure listings are growing more important in this buying foreclosure business. Foreclosure listings gather all the necessary info of a foreclosure home. You can always start your foreclosure research from the listings.

To win in auction, you need skills and info. You need to first find out the market value as well as other details of the foreclosure home. Knowing those things help you in setting your bottom line, your bottom line of bidding price. Because to win in auction, it doesn’t mean how less money you spend to get the property, but how big is the difference between your bidding price and the market value of a foreclosure home. Set a bottom line for yourself based on your research. If the market value of the foreclosure home is 150,000, your bottom line would be around 130,000. (Lesser down your bottom line a bit from the market value in case of some calculation mistakes or changes of the market.) Stick to your bottom line in auction, because if you exceed your bottom line, you would have to bear unpredictable losses. There is no point to buy a financial burden instead of a bargain at first, isn’t there?

There is no short cut for winning in foreclosure home auction -http://www.buyingforeclosure.biz/foreclosureonauction.htm.You will need to research and research to gather info as much as possible. Yes, it’s not easy at all to win in foreclosure auction. However, the good news is, it’s not that hard too to win. As long as you have the persistence, you will win. Seeing the fruitful return in foreclosure auction, it’s worthwhile to put in efforts. To know more on foreclosure auction, I suggest you to get a foreclosure book -http://www.buyingforeclosure.biz/foreclosurebooks.htm as the book can show you more things which a piece of article can’t.

About The Author

From being involved in both home loan and real estate career offline, Shawn Daren is experienced to share his knowledges with us. His buying foreclosure website -http://www.buyingforeclosure.biz provides info on picking up great foreclosure bargains. Learn how to buy foreclosure and earn your real estate money. For more info on foreclosure home, visit -http://www.buyingforeclosure.biz/foreclosurehome.htm.

Sep 16

Foreclosures – How To Invest Successfully

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If someone is about to lose their home to foreclosure, then you can guarantee they’re feeling stressed.  They’re probably being bombarded by calls and letters from creditors, and for many people it all becomes too much to handle.  They close their eyes and hope it will all just go away.

Reality is that it won’t, and as an investor interested in buying foreclosures, the hardest part can be convincing the homeowner that they really are going to lose their house unless they do something about it.  It can also be difficult to convince them that you really are trying to help them, even though you are helping yourself make a profit at the same time.

When you’re dealing with foreclosures, time is of the utmost importance.  You need to have enough time to bail out the homeowner and take over the property before it’s too late.  That’s why it can be a good idea to subscribe to a foreclosure listing service – you get access to listings at the earliest possible time, and don’t have to use your valuable time looking for potential foreclosure properties from other sources.

Many people facing foreclosure have spoken to an attorney, and are convinced that bankruptcy is their only option.  In most cases this isn’t true, but attorneys tend to stick to what they’re familiar with, which is bankruptcy, rather than mentioning other possibilities such as:

- Sale by assumption
- Deed in lieu
- Straight sale
- Foreclosure presale
- Compromise sale
- Short payoff
- Workouts
- Assignment
- Injunctions

There are still more options than these, which shows that bankruptcy definitely isn’t the only choice for the homeowner.  When you’re dealing with a homeowner in foreclosure, make it clear that you’re offering an alternative to bankruptcy.  Find out whether they really understand what bankruptcy will do to their credit history and how it will affect their future.

If you’re serious about buying foreclosure properties, then you need to become familiar with everything that’s required in the process, and check everything for every property you consider.  These items include:

- Loan and mortgage documents
- Loan amount, monthly payment, and interest rate
- Any outstanding taxes
- Existing insurance policies
- Any other liens or judgments

Make sure you have enough information to complete all the necessary tasks before the foreclosure occurs.  If there’s not enough time, don’t even bother starting.  Having said that, learn as much as you can about ways to delay foreclosure, and help the homeowner to implement them all.  If may just give you enough time to take over the property before the foreclosure auction.

Above all, focus on creating a solution where everybody wins.  It’s never an easy time for the homeowner, so be prepared for plenty of anger, frustration and resentment – some of which may be directed at you.  Walk away if it’s obvious the person doesn’t want to work with you.  Find someone who is interested in finding a solution, show empathy for their situation, put together a strategy to get the best possible result for them, and before long you’ll find yourself with a good portfolio of investment properties.

Aug 29

Foreclosure: Buying A Foreclosed Home

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Foreclosure begins when a property owner defaults on the mortgage of a property, mainly due to financial difficulties or the inability to keep up with the mortgage payments for some reason or another. In the event that a property succumbs to a foreclosure, it’s most likely that the property has not been maintained as it should have been. This means that perhaps the roof is in dire need of repair, a damaged foundation or the landscaping has been severely neglected, or a number of other maintenance or repair issues that may be costly. Some foreclosure homes may only need a fair amount of TLC. The amount of repairs needed or required for the foreclosure property may greatly reflect on the asking price. A major fixer upper may be offered at a lower than normal price, whereas a property that is in fair condition may go for a price just the below the market value.

When a mortgage lending institution decides to foreclose on a property, they will file a notice of default that will become a public record for all buyers who are interested in locating foreclosed properties for purchase. There are many places buyers can look to find foreclosed properties such as: various web sites on the Internet, real estate agents or brokers and real estate magazines.

Once the buyer locates a foreclosed property they are interested in, the buyer can assess the public records and check for any liens on the property. Most liens that are placed on foreclosed properties are for unpaid taxes. Interested buyers should also check the values of the neighboring properties before entering into a contract, to make sure they would be getting a fair market value.

Novice buyers may be interested in checking out bank owned foreclosure properties. These bank owned foreclosure properties may prove to be at lower risks to the novice buyer. With bank owned foreclosure properties, there are usually no tenants to evict, no liens against the property and no past due taxes.

Some lending institutions may be eager to sell their foreclosed properties and may offer to finance the foreclosed property to the buyer at a low market rate or with a small down payment. If the lending institution has already done an appraisal, the interested buyer may not have to pay an additional appraisal fee. Most lending institutions that are eager to sell a foreclosed property may also include title insurance that generally removes most of the risks that come with buying properties early on in the foreclosure process.

The more experienced buyer may decide to find a pre-foreclosure property owner about to go into default and offer to buy the property for a portion of the difference between the property equity and the market value. This may be an acceptable offer to a property owner who doesn’t want to end up losing all of the equity that has been invested in the property. Some pre-foreclosure property owners may offer bargains to a persistent buyer. This is mostly because at this stage, credit collection agencies are constantly hounding the property owners, who would in turn want to resolve these issues to avoid any further harassment.

Buyers may sometimes find that contacting the owner of a pre-foreclosed property can be difficult. Usually by this time, the property owner may not have any electricity or a telephone. Sometimes these pre-foreclosed property owners may also be difficult to deal with directly, due to a drug or alcohol addiction that put them in their situation in the first place. Some owners may also be hostile to the buyer or unpleasant to deal with because they are bitter and frightened about losing their home and perhaps they have no other place to go. Some of these owners may even see the buyers of their foreclosed properties as their mortal enemy and may do some extra damage to the foreclosed property before evacuating the premises.

Many foreclosed properties are normally sold at prices close to the assessed value. Depending on what city or neighborhood the buyer is interested in, what the neighboring property values are, how long it has been on the market  and what amount of work needs to be done to the foreclosed property will greatly reflect on the asking price.