Why Invest in Foreclosures?

Why Invest in Foreclosures?

1. Foreclosures are at an all time high � which presents an outstanding opportunity.

2. High instant profit margins - for the well trained investor

3. You can buy at a steep discount � in many cases

4. The future trend for finding good deals is up � borrowers are defaulting on their sub-prime loans, ARM�s are resetting to higher percentages, falling property values, balloon notes becoming due, unstable money and security markets causing financial losses, and uncertain economy leading to layoffs

5. Always a steady inventory of new property

6. Most people don�t understand the process � minimum good information given to the uninformed public

7. Some properties can be purchased for little of your own money

8. Sellers are highly motivated

9. Banks don�t want properties � they want to get rid of them as quickly as possible

Why Foreclosures are Growing?

Foreclosures are a fact of life. Anytime a debtor breaches an obligation of a security document; that�s like a mortgage, deed, or trust something like that, the lender has the right to foreclose on the property. The grantor most likely doesn�t want to acquire the property but they do want repayment of the funds owed. Now in today�s market we are seeing lenders lowering interest rates, extending loan terms, and there�s even talk of forgiving part of the mortgage amount. Even so there are still tons of foreclosures to work. There is an orderly process to the foreclosure which allows an opportunity to cure the situation. However, some homeowners are not in a position to cure that default. This may happen for a number of reasons:

� Loss of job

� Need for immediate cash

� Business failure

� Divorce

� Death

� Mortgage resetting

� Job transfer

� Out of state owner/out-of-towner

Pre-Foreclosures

Many times you can catch a property before it has gone on to the auction block. This time period is called �pre-foreclosure�. The property is in default and likely the mortgage payments are several months behind. The property owner may have no means of curing the default. Yet, the time is ticking towards the time that the auction will take place and everything will be lost. Given that a foreclosure on a persons credit record is the single most devastating item preventing any future borrowing for years to come. A homeowner in pre-foreclosure should be very eager and happy to work with you. Without your help they may not only lose their home but their credit might also be destroyed. A fundamental key to making profit in the foreclosure market is understanding why the property went into foreclosure. Perhaps the homeowner had a temporary cash shortage. You may be able to help them and take an equity position in the property in return for rectifying the situation. Or the owner may be financially devastated and just wants to dump the property before their personal credit is destroyed. You could help solve their immediate problem and give them a new start.

http://www.foreclosureforagrand.com

Finding Foreclosures

Now when we talk about finding foreclosures there are many sources to aid you in finding foreclosures. Hopefully you can find the foreclosure before it has gone too far into the foreclosure process and all possibility of redemption have passed. Again, in today�s market it�s a lot easier to find property in foreclosure than ever before. The following are a few locations to begin the search:

� Classifieds

� Legal newspapers

� Attorneys

� For Sale By Owner

� Realtors = Short sell/REO�s

� Auction companies

� IRS auctions

� Bankruptcies

� Probate Court

� County Courthouse/Registrar of Deeds � this is where it all starts!

Would you like us to go into much more detail? Check out:

http://www.foreclosuresforagrand.com

-Kyle

Author: Kyle Anderson