There are four stages of foreclosure. they are pre foreclosure stage, the auction stage, the redemption period stage and the post foreclosure stage. This article will address the post foreclosure stage. In this stage the period of time after the redemption period has expired and the homeowners rights have been completely terminated.As in the previous three stages there are certain steps to follow.
1. Find properties that have had the redemption period expire.
2. Analyze the information to determine if there is a possibility of profit.
3. Contact the Lender or Real estate Agent for the property.
4. Inspect the property.
5. Re-analyze based on your inspection.
6. Present offer.
7. Arrange new financing
8. Close the sale.
9. Make necessary repairs for sale.
10. Market and sell the property.
This type of property is commonly referred to as real estate owned or REO.When this happens the to the Lender it becomes a nonperforming asset. These institutions are in the business of loaning money and not owning property. You may understand a little more why banks charge a higher rate of interest to those with a poor credit score.
Most lending institutions don't advertise that they have real estate that has been taken back. They will, however, share this information with anyone who asks for it. As you may imagine their primary objective is to dispose of the property and at the very least get back their original investment. At times they will receive everything owed to them plus all related fees. At the rate that foreclosures are rising this doesn't happen too frequently now. They also know that the sooner that they move a property the lower carrying costs are a plus.
Some banks are hard headed in this regard and want full price for their property. Try to reason with them and if you can't change their mind move on to another property. There are lots to chose from!
The post foreclosure market is enticing because you know for a fact that title issues normally have been resolved. There are web based subscription services that have updated lists of foreclosures available on a weekly basis.
This is your opportunity to buy at wholesale prices and sell at retail prices.
This is only a general outline of the required steps. Research further information.
Ray Caran has owned and operated a multitude of businesses over the years. He has been buying and selling real estate for over 20 years. For more tips go to: Property Money Making Secrets.
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