Foreclosure can is an unfortunate fact of life in the United States. However, as an investor it can be a way to make massive amounts of profit. First thing you need to do is find a Realtor that has negotiated a home that was in pre-foreclosure with a bank. This is the key to finding properties and saving thousands of dollars. If the Realtor has never negotiated with a bank they are less likely to succeed in getting the bank to drop their fees and sell you the property for less than they are owed.
The second reason to find a Realtor who has negotiated with banks is because along with getting a severely discounted price they maybe able to negotiate a discounted interest rate on a loan for that property. The bank doesn't want the property back and they already know what the property is worth, so doing transference of the loan to you at a discounted rate is truly in their best interest. You just have to find someone who knows how to get the banks to say YES and that usually involves making the bank think it was their idea in the first place.
In the early default stages of the loan there are other. If you work with a Realtor who is on the list to find out who is getting the default notices, you will get first opportunity to talk to potential sellers and offer them ways out that don't involve them having a foreclosure on their credit report. Most people at this stage are scared and will listen to most options if they don't think they can get out of trouble on their own. If the home owner thinks it is only a temporary situation, consider coming back in 1 month to see if their situation has changed. The key is not to scare them into selling the property, but offer them options to keep the property. If they truly feel you are there to help and they later decide to sell, they will think of you first to sell to. They want to sell to someone they know and trust and if you have been there the whole time trying to help them, they will ask you first as long as they know you are willing to buy. Explain to any potential seller you are there to help and if they should want to sell in the future, you are willing to buy.
One thing you should do if you buy a property from an owner prior to foreclosure, is to make sure to do a title search and have all liens and encumbrances removed prior to closing on the property. For more information on foreclosures and pre-foreclosures feel free to contact me anytime.
Todd Clark - broker
Kastings & Associates
(503)524-9494
Todd@IFoundYourNewHome.com
www.IFoundYourNewHome.com
Todd Clark and the Friendly Home Team
Knipe Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)746-9573
I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.
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