Wholesale Real Estate Source is a Real Estate Investment Company that Deals with Buying and Selling Wholesale Foreclosed Properties Nationally. To Learn More About the Company and All Properties that are Available for Sale, Please Visit http://tinyurl.com/wholesalerealestatesource
Copyright (c) 2009 Duncan Wierman
As the U.S. economy struggles to make a comeback, the real estate foreclosure market is still a ripe place for wealthy investors to do what they do best. Unfortunately, foreclosed homes are at an all time high, thus creating an environment for savvy investors to make a tremendous profit. Because there is such an expanding surplus of foreclosed properties, a new investment opportunity known as bulk REO investing has gained popularity as many scramble to seize this very lucrative investing moment.
REO stands for Real Estate Owned. Bulk REO investing may be a relatively new description, but it is based on an old concept: buying multiple foreclosed properties. To understand how this investing niche works, it’s important to first understand a little about the foreclosure market and why it’s such a rewarding opportunity for investors.
When a property owner fails to pay their mortgage payments, the bank or lender that owns the mortgage takes possession of the property. Depending upon who the lender is, homeowners are sometimes able to modify their loan payments in an attempt to catch up on their arrearages and continue to occupy their home. However, with a record number of jobs being currently being lost and a trend that has left many homeowners actually owing more on their homes than the properties are currently worth, many property owners are either unable to negotiate new terms with their lender or they do not feel that the home is worth the current mortgage price and they simply stop making their payments. The ensuing foreclosure process ultimately means that the property reverts back to the lender in these cases.
This house was listed yesterday and is a bank owned home through Wells Fargo in Riverside County, California. It is listed at $222,000, about $33,000 under current market value. We put an offer in at $228,500. It also says in the Agent Remarks that there is a $1000 bonus if under contract by 6/30/2008 and escrow closes. We are also pre-approved through FHA!!
I know the banks are overloaded with REO’s, but is there any chance they want to unload this house quickly based on the fact they are giving a $1000 bonus if under contract by 6/30/2008??
Any advice is greatly appreciated! As we have been looking since February. Pretty much all Short Sales except this one.
Arizona foreclosure listings will provide you with area properties which are
in foreclosure. However, did you realize that there are several stages to
foreclosure, and each stage has its own separate rules to follow. The
world of foreclosures has its own language, in this article we will attempt to
discuss the words most commonly used when dealing with foreclosures
Benefits to the Seller of the property
The seller wins by avoiding foreclosure by selling their home before the foreclosure auction even if they owe more than its worth.
If sellers were to sell their home foreclosures the traditional real estate transaction with a realtor without a short sale, typically they would have to bring tens of thousands of dollars to the closing to sell their own home. This is not an option for them because they are in foreclosure and don’t have any money.
Sometimes they are able to get some moving money out of the deal where they would get nothing if they lost the home back as a bank foreclosure. A bank foreclosure is also known as an reo. Benefits to the Lender
The Lender wins because they are getting some of their bad debt paid off and are decreasing the amount of foreclosures and reo properties they have.
You see, when a lender has delinquent loans on their books, it affects how much money they can lend out in new loans because they are regulated by the FDIC. So the more bad loans they can get rid of, the more good loans they can then go ahead and acquire. This is why they have the Loss Mitigation department to help the bank liquidate their foreclosure listings.
Also by taking a home to auction, the lender will lose 35-50 thousand dollars.
So it’s a huge cost savings to them to do short sales before the auction occurs. Benefits to you the Investor
The investor wins because we get to make a great profit on a home while offering free foreclosure listings to our buyers, most of the time in the area of 25-200 thousand dollars, that we have invested little money in, have not had to put our credit at risk and we don’t have to rehab the property.
Most of the time we are able to get these properties at 60 cents on the dollar and they are in great condition. I have acquired foreclosures through short sales in bad condition for as low as 28 cents on the dollar. That means I was able to acquire a home for 28 cents on the dollar by doing a short sale with the lender. You can’t buy hud homes for that much of a discount.
The information of how to short sale a home benefits everyone:
It benefits Realtors because in today’s market Realtors are getting tons of listings with no equity and they can turn these dead leads into strong commission checks that they wouldn’t get without knowing how to help their sellers out with a short sale.
It benefits investors because they are getting a lot of leads now from sellers that owe more than their house is worth. The only option for them is to do a short sale.
And the short sale business for investors is awesome in this market because you don’t have to make payments on the house, you don’t have to make repairs to the home, you don’t have to put your credit on the line to do the deal and you make a huge profit just for structuring the whole deal. The best part is you can control large luxury style homes while generating exponentially more profit than starter homes without any risk. You make ten times more profit on a luxury home than a starter home and its that same amount of work and still no risk.
Home Foreclosures are at an all time high and it is your time to get in the game and help out some needful homeowners while make a boatload of cash along the way. Short Sales need to be a part of every investor’s real estate investment strategy in today’s mortgage and housing market.
To get a Free Loss Mitigation Training Course, Go Here What is a short sale
Dedicated to Multiplying Your Income,
D.C. Fawcett
The Business Building Coach to the Foreclosure Industry
Get great deals on real estate owned properties in Lansing, Michigan. Time to get your Lansing REO Free report on how to buy an REO property
Buying bank owned properties is your first step towards financial freedom. These affordable houses can help you build a real estate empire that would last a lifetime. But if you don’t know how to take advantage of such investment properties, then you’re just throwing your money down the drain.
Here are some helpful tips on investing in bank owned homes or real estate owned properties (REOs.)
Buying bank owned properties can be your ticket to success, so if you want to learn more about these amazing houses, log on to www.REIWired.com
Pre-requisites of a Foreclosure Investment
Investing in real estate is the most popular and the most effective way to earn money, throughout the world. If a person is thinking to get started with foreclosure investments then it is required to have a detailed knowledge about it and walk in prepared to meet the success with foreclosure investment. A small bucket of factors should be known that will make the difference between experiencing the thrill of success by investing in foreclosure, or the agony of rout in foreclosure. You need to have the right industry knowledge, upward market trend and adequate cash financing.
Stepping up one on one
As the first step it is safe to behold the laws concerning to the buying and selling of the property in the town where the property is planned to be purchased. Avoid being in the middle of someone’s legal headaches. In addition to accessing accurate legalities for the location of where the purchase is made, there are some other considerations also. Some legal foreclosure proceedings allow the borrower to reclaim title and possession of their property. This is called right of redemption. Thus being aware of critical clauses and having expert legal advice for your state or location is advisable.
Bank Owned Southern California Real Estate-www.leslieeskildsen.com This video give you preview this Bank Owned condo in Lake Elsinore. This Lake Elsinore REO property isn’t on the market yet – but it will be soon. We are putting the word out there to give serious buyers looking for deals on REO homes for sale in Lake Elsinore an edge over the comptition by giving you the inside scoop on Bank Owned properties BEFORE they hit the MLS. For information on what it takes to be a successful REO buyer in today’s market, check out this blog: www.leslieeskildsen.com
A foreclosure is a legal proceeding taken by a bank or mortgage lender against a homeowner who has defaulted on their mortgage loan. There are several steps in the foreclosure process; pre-foreclosure, auction, and bank owned. It is possible to buy homes during each of these foreclosure steps if you know where to find them and who to contact.
Pre-foreclosure (NOD, LIS)
A pre-foreclosure is just what it sounds, the time period between when the bank decides to foreclose on a property and when the actual foreclosure takes place. When the bank decides to foreclose on a home, it is required to notify the homeowner of their intent. The notification that is sent is called a Notice of Default (NOD) or a LIS Pendens. The NOD or LIS also has to be filed with the County Recorder’s Office. The bank is not allowed to release this information to investors, however, but investors are more than welcome to search the records at the Recorder’s Office and find out who is in pre-foreclosure. Investors will then contact the homeowner and try to strike a deal with them to purchase their property before it is actually foreclosed on. These deals are typically attractive to a homeowner because they want to avoid having a foreclosure on their credit.
