Foreclosure is a process in which a piece of real estate
becomes the property of a lending institution due to the
legal owner's inability to make scheduled payments on the
mortgage or deed of trust.
Foreclosures are spreading all over the country, which
means there are opportunities everywhere. Lenders are being
overwhelmed with properties they inherit because of bad
loans. It is safe to say that most lenders will accept a
short sale, however, you may come across one or two who
will not discount. If the numbers work out for the lender
they will do it.
If you are an investor then you may want to check with some
local realtors to see if they are willing to work with you
to take advantage of the many foreclosures on the market
today. Real-estate is not real good right now, but it is
great for those who are willing to buy up the great deals
and wait for a better market. That better market will come
again to sell and profit.
No one wants to give up their home, but they may be forced
to move fast if they lose a job and need to sell. You
should be advertising in the paper on a regular basis for
buying homes and see what the market brings in. You might
be surprised at the great deals that come out if you wait
for them to arrive.
The lender will usually request a hardship letter, a HUD-1,
and a financial statement from the homeowner. A hardship
letter is telling the lender why the homeowners are not
making their mortgage payments. Sometimes they will request
bank statements, pay stubs, income statements, and so on.
Be prepared to send them everything they ask for because if
you don't, your short sale will not be accepted. Do not
waste any time! Send everything the lender asks for back
ASAP. It usually takes at least 4 weeks or more to get an
answer back from the lender, so you can't afford to wait.
If the auction is approaching, you can ask to extend or
postpone the auction which in most cases they will, if they
know it is a legitimate offer.
Experienced foreclosure investors know that to find
homeowners in trouble early, in pre-foreclosure before
their competitors, will make them the largest profits. On
the other hand, those same homeowners in default
desperately seek help to avoid a horrible, unknown fate
called foreclosure.
One of the top reasons for this is that banks' and other
lenders' are chiefly motivated to get rid of these
properties, and recover whatever amounts of money they can
for them, as soon as possible. They don't necessarily want,
nor do they have the time or know-how, to extract the
maximum sales price for a given property.
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Billy Vaughn is a leading authority and has a team of real
estate professionals. You can visit his website
http://www.ForeclosureNetworkUSAprofits.com
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