Foreclosure Opportunities for Investors If you are a seasoned player in the investment sector then Foreclosure Investing is your way to go. If you are a seasoned player in the investment sector then Foreclosure Investing is your way to go. A key investment opportunity in the residential empire, foreclosures have proved to be a rewarding field. These days the number of foreclosure opportunities for investors are practically ceaseless.
With a careful analysis of the minutest details, you could find yourself snorkeling in millions. But a minor blooper can also prove to be very costly. Foreclosures, just like any other investor market, require prudent decision making. But the thrill lies in the added risk and sometimes – sheer unpredictability of foreclosure auctions.
For starters, there are some websites doing a commendable job at keeping the foreclosure investor up to date. These aren’t just website, rather comprehensive resources which guide the investor through hot properties, procedures, relevant details and guidelines. RealtyStore, RealtyTrac and ForeclosureS are some prominent names. Services offered are tutorials, blogs, auctions, websites, articles, listings and forums.
A foreclosure occurs due to default in loan payments by the borrower, thus forcing the real estate (security) to be passed on the lender in compensation for the default. An understanding of the foreclosure procedure and the steps that need to be taken by you in order to invest are both equally important for successful foreclosure investing.
- Foreclosures & Estate Values
It is worth your attention that many lenders and seasoned investors prefer houses for sale in the 60% – 80% of fixed-up value, rather than 50% of value range. Reasons may differ from situation to situation. But the most common interpretation is that lenders/buyers prefer buying a comparatively less cheap property and reselling it a higher price. The downside of buying a cheaper property is that it usually requires expenditure on renovations and repairs.
- The Initial Step
When the borrower (homeowner) fails in repayment, the lender initiates default proceedings against them. The borrower still has rights to ownership if the house and the option of selling or refinancing the property. These are usually known as pre-foreclosure properties. Lenders remain confidential about such properties due to privacy concerns and owners are reluctant to disclose information to avoid publicizing their situation. In these cases, an important source of information is the country recorder.
- The County Recorder
The county recorder is responsible for recording and filing virtually all the documentation related to real estate transactions in the area. The fact that these are public documents allows you access to these documents. Foreclosure properties are identified with the Notice Of Default (NOD) or a Lis Pendens. Using the county recorder’s website to find document numbers and owner names and then using this database at the recorder’s office will help you extract what you need – actual documents, property address and default amount.
Foreclosure Investments are a lucrative option that yields appetizing rewards. They are seen as the forte of the seasoned investor but even beginners with few years’ experience can use their analytical ability to reap handsome benefits.
