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From the Publisher:Foreclosures are the most profitable way to invest in real estate. But most real estate books on foreclosures don t tell you how to invest in short-sale foreclosures – properties with even more profit potential than regular foreclosures. A short-sale foreclosure is a lender accepting a loan payoff for less than the amount owed. This comprehensive new guide from renowned real estate authors Chantal and Bill Carey covers all the ins and outs of short-sale foreclosure investing, from finding properties to negotiating with lenders, to closing the deal and making a bundle. Inside you ll find all the information you need to succeed: finding great short-sale foreclosure deals, dealing with owners in financial distress, when to buy short-sale foreclosures, creating equity in foreclosure properties, writing successful short-sale offers, FHA, VA, and private mortgage insurance short-sales, purchasing short-sale properties at auction, understanding escrow, closing, and title insurance, flipping short-

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http://real-estate-investing-club.com With millions of foreclosed homes in the real estate market today it may seem easy to find foreclosed home listings but often it is a little harder than it looks. Check out this video and I will show you 5 easy ways to find foreclosed homes in your area.

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In the real estate investment industry a few percent can mean tens of thousands of dollars or more. It’s no surprise then that foreclosures are among the most desired methods that real estate investors use to obtain prize real estate at significant discounts to market. From the homeowners perspective, it’s really very sad but from the lenders perspective they would argue that they are simply following the protocol that must be obeyed when a homeowner fails to meet their borrowing obligations.

If you thought that using foreclosures as a means of real estate investment was beyond your ability then you may wish to rethink – particularly as it’s possible to obtain real estate for discounts of as much as 20% or more (to market). With the foreclosure rate due to rise in the near future, this is a strategy every serious property investor must be prepared to implement for increased profits.

This article looks at the foreclosure process, how to purchase real estate with foreclosures and some issues to consider before getting your toes wet.

The Foreclosure Process – How And Why Properties Are Available Through Foreclosure & How To Bid For Them

When a home-owner fails to pay their mortgage (after a number of warnings) their home is sometimes foreclosed by a bank. There are two major timeframes during which you can get involved – either you can choose to offer the existing owner (before the foreclosure is finalised) or you can wait until after the foreclosure and purchase the real estate directly from the bank. The bank may choose to put the property up for sale via an auction or sell it directly on the market.

There are many reasons why home-owners want to avoid having their property foreclosed at all costs – they do not want the foreclosure taboo to show against their credit history. This means that you can step in and purchase the property from the seller before the foreclosure becomes final – if your negotiation skills are good it can mean you picking up real estate at significantly below the market price.

If the real estate is offered for sale at auction then it may be an opportunity to pick up a bargain. However, you’re likely to face competition on any real estate that is considered to be prime. Take into account the following before attending the auction with the intention of securing the property:

(1) Create a plan – what is the maximum amount you’re willing to pay for the property. Decide this before hand and stick with it during the auction. Your plan should also include a blueprint of action should you obtain the real estate. Will you flip it on the market or rent out? Convert into something different? These things must be planned far in advance of you buying the real estate or you could end up with something that doesn’t fit in to your plans.

(2) Investigate the property thoroughly – do you need to spend anything on it by ways of repairs/modernisation? How much will this cost?

(3) Are you funding the purchase with loans? How will you repay the loans? If the real estate does not bring an income do you have sufficient cashflow to service any loans?

(4) Are you confident that the real estate does not have any existing fines related to it? It’s possible to purchase a property at auction only to discover it comes with existing fines which you must now pay ( the real estate instantly becomes a liability – not quite the cash cow you had hoped for).

So why would the government or banks sell these repossessed real estate units at far below their market value? For a start, lenders do not like to have more than a certain number of foreclosures on their books at any given time – they could be accused of periodically lending to those who are unsuitable candidates while the government can make better use of liquid funds rather than assets tied up in real estate.

Either way, the real estate investor wins.

Some “Real World” Issues That You Will Need To Consider Before Getting Into The Foreclosures Market

First, many individuals may well struggle to cope with the idea of being the “nasty person” who profits from someone else’s misery. In the past investors who have purchased real estate through foreclosures have had problems with evicting the existing owners. If this type of situation arises it can be difficult to sort out (and include costly & lengthy legal proceedings to get the tenants evicted). In some places, the previous owner may also have the legal right to buy back the real estate from you.

Despite some potential pitfalls (which can be avoided and planned for) foreclosures remain a good way of investing in bargain real estate.

James Franklin
http://www.articlesbase.com/real-estate-articles/what-you-must-know-to-make-money-with-foreclosures-84049.html

Christmas is a good time to root for the underdog. People feel charitable; they want others to have happiness, a peace of mind.

But if you pay attention to the real estate market, underdogs are everywhere, and charity is scarce. So what, in this time of giving, is the best thing to hope for.

Some might argue the best thing for jeopardized homeowners is leniency from their mortgage companies. This provides short-term relief for homeowners who are not able to meet their mortgage payments. It allows people to keep their homes, salvage their credit, and pull themselves out of debt. But it can also extend a loan for up to 40 years. Over that length of time, property values typically decrease, so the owner pays more per month than what the property is worth.

Others might argue for nothing to happen. Keep interest rates high. Let people see and learn from their mistakes. Lose their homes. Grow debt. Foreclose on their property. Why, the argument goes, should responsible tax payers have to pay for the mistakes of somebody else’s poor investment?

Depending on your situation, you probably feel strongly one way or the other.

A recent article in the Atlanta Journal Constitution reported on the issue. Speaking about interest rates on loans being cut, Emory professor Frank Alexander said:

“It may be of some benefit to borrowers who are likely to go into foreclosure. But it would provide relief only in the short term. This does not provide long-term solutions to problem mortgages. Most of these programs provide no measurable help to people who are in mortgages they should not be in.”

This is true. And it might change some opinions. But for people in a tight spot, a quick fix, no matter its long-term implications, is needed more than anything else.

The article continues:

“Alexander stressed that the programs offered so far typically try to lower the payment for about three years by cutting the interest temporarily and extending the loan to 40 years. He noted that is similar to many of the “teaser rate” loan products people got in the past few years that let people buy more houses than they could truly afford. So, a lower rate short term might bring the same kind of crisis later when the rates adjust upward.”

People have individual problems. But as a nation, we must consider things on a bigger level. Nobody wants the mortgage crisis to last. Nobody wants thousands of people to foreclose on property. It is bad for real estate and bad for the economy.

But if such rate cuts are offered to homeowners, what will the state of the market be in 10 years? It is imperative now to employ foresight. If a homeowner is in danger of falling into foreclosure, he or she should work with their bank as much as possible. Homeowners have more clout now that they did last year. If nothing can be done, the home should go into foreclosure. The owner relinquishes payments and starts anew.

Foreclosures will increase. In December, Atlanta has nearly 7,000 pending foreclosures. Expect more. The market will saturate. Property prices will fall. Soon, when the economy perks, it will be an ideal time to buy.

Meantime, people in foreclosure should be working towards financial balance. Atlanta is as expensive as any other city when it comes to renting an apartment. It is equally difficult now, with the high number of renters, to find a suitable, temporary dwelling. But so far, rental prices have not skyrocketed. It is a good time to rent, to find that financial balance and develop strategy. The Atlanta real estate market is volatile. Soon, it will show its strength again.

Renters should visit Promove for more information on Atlanta Apartments.

michaelrussell
http://www.articlesbase.com/moving-and-relocating-articles/atlanta-real-estate-rent-versus-buy-697846.html

A large no:of myths are there regarding foreclosure. Some of them are here

Myth: The bank wants my house.

Truth: Banks never want your house. All they really want is the money that was given to you. They actually hate going through the foreclosure and might very often bend backwards to avoid a foreclosure. The flexibility of the bank may not suffice to stop a foreclosure, but do not be under the impression that the bank wants your house. Avoiding and ignoring the bank would only increase the possibilities of them knocking at your door.

Myth: The bank will not take payments. I am left with no options.

Truth: There are times when the bank specifies that if the debtor does not pay all the arrears in full, they will not accept partial payments. If this occurs, you will notice that after a month or so the bank sends back the payment and the ‘all or nothing’ requirement has increased. Do not be afraid! A mortgage negotiation professional is always there to mediate between you and the bank to stop the foreclosure. They set a small portion of the arrears that you have to pay. In addition, they also help you to pay for the remaining arrears. This could be months or even the loan duration or the loan extension period.

Myth: I will have to move out, since I received a foreclosure notice.

Truth: Almost all the states have a lengthy foreclosure process. You do not have to move out even though you failed to avoid foreclosure. A person is expected to go through an eviction process till he finally has to leave the premises. You need not hold on till the end, but ensure that you stay on and fight for as long as you can. Timely action would always ensure that you get through the foreclosure process easily, without losing the house.

Myth: Since I am in foreclosure, banks will not refinance me.

Truth: If an individual has enough equity, say about 60-70%, specialty lenders do refinance the house and help in paying up the bank, thus stopping the foreclosure.

Myth: Since I have undergone a foreclosure, I cannot buy a new house.

Truth: Foreclosure is considered the worst thing ever to appear on a credit report. In spite of this, many banks offer to loan money after foreclosure. Be ready to pay high interest rates and large down payments though. Very often the terms do not allow you to purchase any new real estate property or house. If you are able to spruce up the credit report by rebuilding the credit, you might just be lucky enough to approach a bank for a foreclosure.

Myth: Everyone will invade my house on the day of the auction.

Truth: No one is allowed to come inside the house without a court order. According to foreclosure rules, this can be done only if you invite the concerned people into the house.

Myth: Chapter 7 Bankruptcy would halt all bankruptcy operations and save my house.

Truth: Chapter 7 Bankruptcies stop home foreclosure only for the time being. Ultimately, you have to think of some alternative to pay back the loan and keep the house as well.

Kris Koonar
http://www.articlesbase.com/non-fiction-articles/common-myths-about-foreclosure-121214.html

Those having trouble paying their mortgage should consider a foreclosure loan that is available today. In particular, government foreclosure grants allow individuals and families to pay their mortgage to stay in their home, and this is money that never has to be repaid.

The government is providing billions of dollars in free money to help stimulate the economy. While government grants have been around for a long time, there has never been this much money being given away.

With the current state of the economy, the government must act fast and provide every means possible to stimulate the economy. When people lose their homes, it has a drastic effect on the economy and we just can’t allow millions of Americans to lose their homes.

That’s why free grant money is being made available to those who need financial assistance, and just about anyone has the potential to qualify for this money. As long as you are at least 18 years old and are an American citizen, you can submit a request for a foreclosure loan.

Beyond that, there are many other grant programs to help you pay your bills. Everything from grants to help you pay your credit cards, to grants to pay your school tuition and daycare costs. It’s just a matter of asking for the money.

Millions of Americans are applying and receiving these funds, whether they need the money or not. As a tax payer, not only are you entitled to receive some of this money yourself, but you are already paying for it through the taxes you pay. Now is your chance to get some of that money back by getting your federally funded foreclosure loan.

Austin Warty
http://www.articlesbase.com/real-estate-articles/foreclosure-loan-and-free-money-to-pay-debt-750083.html

Home buyers are frequently looking for a good deal on a house. Whether they are upgrading, investing or buying their first homes, those in the market for real estate know that foreclosed and real estate owned (REO) properties provide the prospect to get a good deal on a home. They are not the same type of property, however. Real estate owned property is property that the bank has repossessed from a distressed homeowner and either decided not to sell through foreclosure or failed to find a buyer for at a foreclosure auction. The lender then sells the house as its new owner outside of the foreclosure course. A foreclosure, on the other hand, is a property that is being sold to pay the balance the homeowner owes. Each state deals with foreclosure sales uniquely, but these properties are typically sold at auction to the the entity that places the highest bid. The starting bid at a foreclosure auction incorporates all that is to be paid on the property, the accrued interest, and the attorney bill associated with the sale.

Distressed homeowners usually face other types of financial challenges outside their failure to pay their mortgages. Often they will add to the amount of debt they have on the home in order to try to fix their problems. They also frequently owe unpaid taxes on the home by the time it winds up in foreclosure. For this reason, the beginning bid at a foreclosure auction may be more than the property is estimated to be worth, which causes many auctions to be unsuccessful in bringing in a winning bidder. The banks are then motivated to turn the property into a real estate owned property and sell it at a later date. Typically, REO properties go for up to 20 percent of their current market value. Prior to purchase, buyers need to examine the property and comparable properties in the district to make sure they are getting a good price.

A REO sale is considered one of the safest types of real estate deals, since the seller is a bank, not an individual. Unlike foreclosures, REO homes do not carry the added weight of liens or back taxes that the new owner will be responsible to pay. Also, buyers can see REO properties before purchasing them, bargain on the price to accommodate the need for repairs and still get the home for a great deal in many instances. On the other hand, buying a foreclosure sometimes represents a solid investment, because the home’s current owner may wish to reside in the home as a renter. This means the home comes with tenants, allowing its new owner to start making money right away. When purchasing a foreclosure at auction, the buyer will conclude that the bank that handles the loan on the property is more than willing to speed up the financing process in order to discharge the burden of the home. If a home does not have a lot of debt against it, buying it through a foreclosure auction offers the best chance to get a good deal. The vital aspect is researching what is owed on the home before bidding at an auction if you are looking to find a good deal.

Anita
http://www.articlesbase.com/real-estate-articles/choose-a-reo-or-bankowned-home-for-a-fantastic-bargain-740922.html

There has been a lot of talk about the market cooling. Does this mean it is now the buyer’s turn at benefiting from market conditions?

A buyer’s market occurs when sellers have little or no power in the negotiating of the sale of a home. The buyer has an advantage in that there are more homes to choose from. Housing prices may also be down due to the negotiations of wise buyers.

Are we heading for a buyer’s market? Some areas have shown indications that we are. In many areas, home sales have slowed down. Homes are staying on the market much longer. The longer a home is on the market, the sellers should be more willing to negotiate.

Not only is the inventory of homes for sale going up, but the housing prices in some areas have stopped increasing. A few areas are actually experiencing decreases in housing values.

You may be saying that interest rates are working against buyers, but that isn’t necessarily the case. Interest rates still remain at a reasonably low level. What this means is that the average person can still afford to buy the average home.

In fact, interest rates help create a buyer’s market. With interest rates on the rise, many homeowners are experiencing monthly payments on their adjustable-rate mortgages. Some homeowners who purchased at the peak of the market are just now having their mortgages adjust. There are reports of payments doubling in size for some borrowers who took out risky loans.

Foreclosures are on the rise. People just can’t afford their homes any more. They have to sell and they have to sell quickly, before they are foreclosed on. With more and more homes popping up for sale, buyers will have plenty to choose from.

All of these conditions give buyers an edge in the real estate transaction process. Buyers don’t have to jump on the first home that they see because homes are no longer few and far between. In many cases, bidding wars won’t be an issue. Multiple offers may still occur, but buyers are likely to be a little more relaxed. Of course, this is in general — there will still be areas and neighborhoods that are experiencing a lot of buyer demand.

If you are looking at buying a home in an area that is experiencing a slow down or buyer’s market, you can use things to your advantage. Find out your seller’s reason for selling. It could be that time is of the essence, giving you an edge. If there are any contingencies that you need to include in the contract, now is the time. Sellers that are having a hard time selling their homes are more willing to do what is necessary.

Don’t forget to have the property appraised — and make sure that there is an appraisal contingency in your contract. If you are in an area that is experiencing quickly dropping home values and your closing is several months away, I would go ahead and have the property appraised for a second time close to closing.

You should also have the property inspected by a professional. This should happen in both buyer’s and seller’s markets. You wouldn’t buy a car without a test drive, so make sure that you at least look under the hood of the home.

Buyer’s markets are great for buyers. If you are in the market to buy a home, pay attention to the home sales in your area. But don’t worry too much about the market, what counts the most is buying a nice house that you can afford.

Martin Lukac
http://www.articlesbase.com/real-estate-articles/when-will-it-be-the-buyers-turn-83572.html

In part one of this article I discussed critical mistakes 1 through 5:

1.Using and out of town lender.

2.Not getting a loan approval letter before writing and offer on a home.

3.Buying too much house for your income.

4.Thinking short-term in regards to how long you will own your home before selling it.

5.Using 1031 exchange money to purchase a personal home.

Now for the “Top 10 critical mistakes home homebuyers make and how to avoid them”, 6 though 10:

6.Waiting for the “bubble” to burst.

Hot markets come and go. Cold markets come and go. Markets become over-priced, then over-time become under-valued. If you are waiting for a severe correction in real estate prices, pull up a seat, because you might be waiting a long time.

Homes, unlike other investments (the stock market for example) are valuable in two ways: 1) Psychological value – homes have value because everyone thinks they should, and 2) “real” value (people, homeowners and renters, need shelter).

Because homes are valuable in both respects, home values historically will usually only level out after a hot market. Sometimes homes will lose some value but not very much. St. George homes lost about 5% of their value after the last hot market in 1995…sort of like a balloon deflating because it took several years for this to happen.

If I were looking to buy a home I would be more concerned with interest rates and less concerned with playing with bubbles.

7.Not choosing an agent carefully.

In our town about 75% of real estate agents have been in the business one year or less. I suspect that this is true nationwide. The hot market of 2005 caused everybody and their brother to want to get their real estate license. When you contact a local agent, you probably have a 3 out of 4 chance of getting an agent who is severely under-qualified to represent you in the purchase of $250,000+ investment…your home.

You’ll want to contact at least four agents to make sure you are getting the best one you can find. Ask questions and then trust your instincts as to which agent is the best one for you.

8.Not having a home inspection done by a Professional Home Inspector.

A good, experienced Home Inspector will catch problems in a home that most homebuyers would miss.

I have seen all of these items missed by a potential homebuyer, but caught by a home inspector:

a.A dryer vent, venting into the attic

b.A ground fault interrupt breaker not working (this can kill you!).

c.Evidence of termites

d.Aluminum wiring

e.A roof leaking into the attic, but not into the main part of the home (yet!).

Several years ago I became aware of a transaction in our real estate office where the buyers decided not to have a professional inspection on an almost new home they were buying. They “inspected it themselves” to save the $300. Too bad they didn’t catch the fact that some of the basement windows leaked badly when it rained. The water stains were clearly visible had they known to look. That turned out to be a huge mess involving lawyers, threats and grief. This could have been avoided by paying the $300 to have a Professional Home Inspection.

9.Not receiving a home warranty at closing.

It’s 3:00 AM. You wake up hearing water running in your newly purchased home. It keeps running. And running. You get up to check it out and find your basement floor covered with water from the broken water heater. Luckily the damage from the water is minimal. You go to look for the Home Warranty confirmation in the documents you received when you bought your home the previous month. You know that the home warranty company will replace your broken water heater for only $55. Suddenly, you slap your hand to your forehead and make the Homer Simpson “Douhhh” sound as you realize that you didn’t get a home warranty because the seller wouldn’t pay for it and you certainly didn’t want to pay for it.

Lesson learned, always get a home warranty you buy a new home, even if you have to pay for it. It is money well spent. I would never buy a home without purchasing a home warranty. I never sell my own properties without a warranty for the buyer. It just makes good sense

10.Not meeting the neighbors before you make an offer.

Don’t you really hate it when your neighbors suck? Don’t you think it would be a good idea to do a little door knocking before you buy your new home? How about going online to look at your state’s website for registered sex offenders?

I did a little door knocking before I bought a foreclosed home in St. George. I was buying the home for my personal use and as part of the “due-diligence” I decide to meet the neighbors. I asked which house was the “bad house” on the street. I came to find out it was the home I was buying because the previous owners were noisy, rude, dirty, and didn’t care for their home. I changed that by buying the home and moving into it.

There you go; 10 simple steps to keep yourself, as a homebuyer, out of hot water. Violate any of these steps and you may end up losing a little or a lot of your hard earned money. Now go out and find the home of your dreams!

Don Glasgow
http://www.articlesbase.com/advertising-articles/top-10-critical-mistakes-homebuyers-make-and-how-to-avoid-them-part-two-67418.html