buying my first foreclosure
hello everyone,
I am very interested in buying forclosure my question is where do i start how could i obtain a list of foreclosure properties in my area and could i do this with little of no money.
new investor
It is sad to say my friend, most forclosures require the money up front. Forclosures require that you close the deal within 30 days from the time that you offer is excepted. If you do no have the money then you will need to get a loan. Sometime getting the loan within that time frame can take a bit of doing. Plus you will need to put up 10% of the cost at the time your offer is excepted.
Getting a forclosure with no money down is next to impossible. It is easier to find a motivated seller that will allow you to to carry a second, or do a lease option. Also some mortgage companies will make you a first and second on the same property if you credit score is good enough.
Otherwise, I would look at other option besides forclosures. Sorry if this is not what you wanted to hear.
I'm think what you are looking at doing is preforeclosure. Getting possession of the property or getting something worked out before the property goes to the courthouse steps.
If that is your objective then you'll need to advertise using an ad in a suburban newspaper, penny saver type paper, or signs that carry the message "avoid foreclosure", "escape foreclosure", or "stop foreclosure".
You should also be able to buy a preforeclosure list that lists the address, loan balance, number of loans, tax appraised value, and owner. You can hit them with a direct mail campaign or better yet go out and knock on their door. If you knock on their door you have to be low key. Expect people to cuss you or slam the door in your face. Also expect people to invite you in to discuss the situation.
You're looking to find out how many payments they're behind. YOu want to find someone to make up the payments, either a private investor or an individual with enough down payment. Or, you want to work out a short sale with the bank, getting the bank to take a discount on the property.
There's a guy in Atlanta teaching-Tony YOungs. Also there's Ernie Kessler, a foreclosure guru. There's Jeff Kaller, "Mr. Preforeclosure". Try MrPreforeclosure.com for more info.
Email me at gracepoling@aol.com.
Hope it helps.
eric poling
Also, going along with the pre-foreclosures and short sales with the bank, you have to secure a committment letter from a lender to show the bank that your short sale can go through. Many times, once the bank approves your short sale, they need to see you have the money right then. This is how I lost my first foreclosure deal