Record Foreclosure Rates Could Mean Cash in Your Pocket
May 20, 2008 by David
With the mortgage crisis in full swing, homes are going into foreclosure left and right all across the country. In 2005 there were 850,000 foreclosures, with the number of foreclosures increasing every quarter.
All these foreclosed properties offer you a great investment opportunity. You can scout and buy homes in foreclosure, then keep them as rental properties and collect monthly checks from tenants. Or you can purchase foreclosed properties and flip them, renovating and selling the homes for a profit. The time has never been better to use the real estate market to your advantage.I was recently sent a free copy of a great foreclosure book by a real estate pro by the name of Denise Evans. Her book, The Make Money on Foreclosures Answer Book: Practical Answers to More Than 125 Questions on Investing in Foreclosure Property is a straightforward, easy-to-follow guide to making money from foreclosures.
A quick and authoritative reference, the book explains all the elements of the foreclosure process and reveals everything you should keep in mind as you deal with foreclosed properties. The Make Money on Foreclosures Answer Book answers the most common questions about working with foreclosures, covering such topics as:
- Finding properties to buy
- Borrowing money to fund your purchase
- Determining your costs
- Buying pre-foreclosures and buying at auction
- Buying through a bank or the government
- Tax and legal issues
- Bankruptcy
- Dealing with the property’s former owner
Written by a real estate broker and attorney with over twenty years’ experience making money in the real estate market, The Make Money on Foreclosures Answer Book reveals insider tips and strategies that will help you buy foreclosure properties safely and sell them to earn a profit. Check it out on Amazon to buy or read more about it.
About the Author
Denise L. Evans received her law degree from the University of Alabama Law School. She is a licensed real estate broker, an active member of the Commercial Real Estate Club of Birmingham, and a research associate for the Alabama Real Estate Research and Education Center. She resides in Tuscaloosa, Alabama.
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I find the foreclosure business in the U.S. interesting as it presents a view into the future for our Edmonton, Alberta, Canada real estate market. We always move about a year or 2 behind you. I guess it’s coming… Wish me luck!
I think the foreclosures in the Sunbelt markets have drastically reduced home prices but that doesn’t always equate to real estate deals
I believe if you are in the position buy up your dream houses in your dream locations now. You can really get them at a steal!
I agree with most statements made here. The ability to purchase in this market will show your strength in the future.
I think typically when it comes to foreclosures a lot of the time they end up being homes that not many people want to buy. Of course there are exceptions. However this year changes much of that. There are millions of homes nation wide that are entering foreclosure, if not already. The difference is many of these homes are quality single family units that make for a good investment. They are in good parts of town and for a reasonable price. I think this year presents a good opportunity for investors as long as they don’t get themselves upside down.
Useful post and great responses.
Here in the northeast we have our share of forclosed homes but most of these homes are being listed with real estatebrokers instead of the “old school” way of the early 1990’s when the bank would simply give it to an auctioneer and have them sell it on the street. Auctions are the best way to get the nest buy. I find that the banks are getting more for these properties by listing them with brokers but they are taking a lot longer to sell and the large numbers of them are dragging down the rest of the market.
in California there are a lot of foreclosure auctions all around Southern California. Definitely a must go to. Houses go relatively cheap!!
Watch this interesting video by an artist, Cadence Weapon called “real estate” - http://www.youtube.com/watch?v=YtLoi0PG-Zw
We have seen an increasing number of foreclosures in Washington D.C., Maryland and especially in Virginia. In Virginia prices of homes have dropped by more then half. A house that used to cost $800,000 now cost somewhere in the neighborhood of $400,000!
I agree that this is a great time to be investing in real estate.
I prefer pre-foreclosures. REO’s are harder to close than short sales. Now that the bailout funds are not going to be used to buy up bad debt, mortgage lenders are accepting 50% of fair market values to avoid foreclosure proceedings.
Short sales are what’s selling right now.
Temporary 1% funding for short sales is now available.
It is very sad and unfortunate so many people are losing their homes. I for one point my finger primarily at the banks. pssst, did you see Citi is laying of 50k people, front page of CNN. For investors though, now is the time to pounce. A solid credit score is key though. There’s a great article here.
It’s a great time to buy and bargain hunters continue to move in to take advantage of the high inventory, rock bottom prices, and low interest rates.
Foreclosure are a great way to get real estate, but one of the best ways is to be able to get to it when it is in the Pre-Foreclosure stage. That way you don’t have to deal with the banks.