Learning About Foreclosures...any Advice??
I am trying to learn about foreclosures. Does anyone have advice on a good book or course they have used to help them understand about foreclosures from the foundation on up such as how to look for them, buying them, financing,etc..?
Thanks!!
Chris G
There are two stages to a foreclosure, Preforeclosure, and actual foreclosure.
In preforeclosure, the owners have been legally notified by attorney and or lender, that they are foreclosing because of breach of contract (not paying their mortgage) This is when you want to try and negotiate a sale of the property by the owner, to stop their foreclosure, save their credit etc.
The day of the auction, or once the property gets sold back to the bank, is when its a foreclosure. To bid at the auction, you need a certified check for 5k, and must come up with the remaining funds within 30 days. If not, you forfit your 5k. If the bank buys it back, they are usually now selling it through a realtor, because they want to get more than just their money back. Buying this way, is 9 times out of 10 not a good deal anymore, (unless the property needs work) because they now sell for full market value.
Thanks birddog..
So basically, you will prob find your better deals and motivated sellers in the pre-forclosure part of the process?
How do I locate sellers in pre-foreclosure?
Thanks..
Chris G
Because Massachusetts is a non-judicial state, I basically have to rely on the legal notices of the news paper, where they list "Mortgagees sale of Real Estate" and also from word of mouth. Another thing you can also do is look for the FSBO's because many times they are in foreclosure. I work shorttime at home depot, and everyone there knows who I am and what I do, and they all have some of my business cards, so if they ever hear anything, I give the individual a card, and have them call me. Works out well sometimes.