Top Five Tips for Buying a Foreclosure Property Below Market Value

Contributed by: Jim Saccacio, RealtyTrac Chief Executive Officer

If you feel like the escalating costs of real estate have priced you out of the market, think again. It may be time to investigate the vast opportunities available in the foreclosures market.

For people willing to do a bit of homework, the foreclosure market offers some of the best opportunities available in real estate today. Experts point toward significant growth in available foreclosure properties, so there’s never been a better time to line up your resources and educate yourself about this previously hidden market. It’s not unusual to save from 10 to 30 percent of the market value on a foreclosure property, and certain properties offer savings of 50 percent or more! There really are bargains out there. You just have to know where to look.

Web-based services such as RealtyTrac give consumers access to foreclosure and pre-foreclosure information that was previously available only to professional real estate brokers and investors. Today, homebuyers can use these services to identify and research potential home purchases, as well as to find the tools and professional resources they need to help them close the deal. RealtyTrac, which provides all the foreclosure data for both MSN House and Home and Yahoo! Real Estate, has already compiled a list of over 550,000 foreclosure properties across the country.

The keys to a successful foreclosure property purchase are diligence and patience, along with taking an educated approach to investing in this market. RealtyTrac CEO Jim Saccacio offers five tips to help you close a deal on a foreclosure property:

1. Learn about the different types of properties and the foreclosure process.
Not all foreclosures are the same! You need to educate yourself on the difference between the three basic types of properties, including notice-of-default (NOD), notice of trustee sale (NTS), and real-estate-owned REO, as well as the positive and negative aspects of buying at each stage of the foreclosure cycle.

As a rule of thumb, the best savings can be made at the pre-foreclosure stage, where home owners can avoid a foreclosure and lenders can save the time and cost involved in going through the process. Another critical point in the process is immediately prior to the auction date, when all parties might be most open to a last-minute solution.

2. Secure financing early
It’s important for a buyer to be pre-qualified before engaging in discussions with a seller. This ensures that the buyer is in a financial position to purchase the property, and is in the strongest possible position to negotiate.

3. Engage a real estate agent as a “buyer’s representative”
There’s a distinct difference between a buyer’s and a seller’s representative. Buyer’s representatives have the home buyer’s interests at heart, and are charged with finding the right property and negotiating the best price for their clients. Picking the right real estate agent will make your life much easier. Ideally, select an agent who specializes in the foreclosures market and has specific experience in REO properties.

4. Do your homework
Purchasing foreclosure properties is somewhat more risky than buying traditional real estate properties. But, with that risk comes reward in the form of much higher potential savings. With the right examination and due diligence, buyers can significantly reduce the risks. As with any purchase, timing is everything! But, it makes sense to give any property under consideration a thorough examination, including determining its condition and value, finding out the amount in default and the remaining loan balance, and running a legal investing report to make sure the property is free of any financial liabilities. Of course, it never hurts to foster a positive relationship with the seller!

5. Make a realistic offer
If you want to be taken seriously as a buyer, you must be realistic when preparing an offer. Lenders aren’t likely to give properties away, particularly in a real estate market where prices continue to rise. Additionally, homeowners in financial distress may be difficult to deal with, particularly early in the foreclosure process. An educated buyer—one who knows how much is owed on the property and what its market value is—can usually come up with a realistic offer; one that offers significant savings, while meeting the requirements of the lender.



Stephan Iscoe
Publisher,
MoneyMakersNews.com

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Learn the Insider Secrets of Buying Bank Foreclosure Properties

Understanding the Four Stages of Foreclosure

When you buy a house, you do not consider the fact that someday you may run into financial problems and that foreclosure may be something that you're facing. Many people panic and think that when they fall behind on their mortgage, there really is no way out. The fact is that there are many options for those who face foreclosure if they do things in a timely manner.

There are actual stages of foreclosure that a person will go through, and actions you can take at each stage to possibly forestall or even prevent the foreclosure. If you know what the stages are, you can better plan how to get out of foreclosure. By knowing what to expect and what you can do, you will be on your way to saving your home.

The first stage: Your mortgage is late. There can be many reasons that make you fall behind on your mortgage. Perhaps you fell ill or you were laid off. No matter what the reason for which you lost your steady income, the fact is that you fell behind on your mortgage so now you are trying to make ends meet and save your house. You want to be sure to keep in contact with your mortgage company. Many people make the mistake of ignoring their lender and that can be very damaging to the loan. You will only add to the late fees you are accruing and there can be other costs as well when you neglect your lender's enquiries.

The second stage: Once you are late, you suffer the consequence of being reported as late. There can actually be legal fees that may apply due to the fact that your lending is filing for foreclosure. Your delinquency will be reported to the main credit agencies and this will damage your credit rating.

The third stage: Once the above stages have passed, your lender may start foreclosure proceedings. This can entail having you evicted from the property. Most lenders will give you anywhere from one to three months to get things in order to try and fix things. If you fail to fix things then local law enforcement officials may come to forcibly remove you and your family from the property.

The fourth stage: Once you have been removed from the property and the house is vacated of your belongings, your house will be auctioned. At this point, you still have a change to retain your property since you also have a right to bid on it at the auction. You may actually be able to buy your house at auction for a fraction of the cost that you owed on it.



Stephan Iscoe
Publisher,
MoneyMakersNews.com

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Learn the Insider Secrets of Buying Bank Foreclosure Properties

How To Avoid A Forced House Sale

Many parts of the world are experiencing a severe downturn in their real estate markets. You only have to scan local newspapers to see the increase in foreclosures or mortgagee sales. All this is very upsetting to those involved especially for those losing there homes. Spare a thought also for those who have their savings invested in these mortgages. Just regular people who could be at risk of losing all their life savings when some of the less competent financial institutions are forced into receivership. You may say that they should have been more careful in the first place but it is very easy to be wise after the event.

Mortgagee sales and foreclosure are something nobody enjoys except, perhaps, for the opportunist that gets an outright bargain. For everyone else it is just worry, stress and heartache. So what can be done. For those home owners that have no equity in the home and have a 100% mortgage the best thing may be to just walk away from everything and just rent a home, even though it might make it difficult to borrow money again in the future.

For those who want to stay on in there home it may pay to seek the assistance of a financial advisor or prominent mortgage broker. Firstly they need to have their finances properly ordered and appropriate budgets put in place. Then they can search out alternative mortgage finance with better or more affordable repayments. There are many mortgage variations out there that could fit perfectly. Just simply lengthening the term of the mortgage could be all that is required. Try not to get a bad financial record before you look for an alternative mortgage and this can work very well for hard pressed home owners.

Sometimes it can simply be better to sell and salvage what money you can from your home. If you leave things until the mortgagee auction your interests are the last to be considered and the finance companies are only interested in getting most or all of there money out. You could and probably will lose everything. In this market finance companies panic and will take big losses on there loans just to quit them.

Other strategies that can be tried are swaps and trades. Try advertising to trade down. Offer to trade your home for a cheaper property that may be smaller or in a less desirable area. Do not be too fussy, the idea here is to protect your money. You can always sell again when the market picks up.
Maybe trade a car or a small business as part payment. A home owner traded a shop full of garden ornaments once as a down payment on his house that was difficult to sell. It was fairly inconvenient but it worked.

Whatever you do, avoid waiting until auction day thinking that it may never happen. Get proactive, find the best selling real estate agent in your town and get him to advise you. Get him to give you a realistic selling price and marketing campaign and if it makes sense go ahead with enthusiasm and get the thing sold.


Stephan Iscoe, Phd
Publisher,
MoneyMakersNews.com

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Learn the Insider Secrets of Buying Bank Foreclosure Properties

Seven Sure-fire Ways You Can Avoid Foreclosure

Although it's a situation none of us ever wants to be in, home foreclosures are on the rise. If you ever reach the point where your lender is ready to foreclose on your home, the following tips may help you delay or even avoid foreclosure proceedings.

Tip 1: Deal with the problem head on.

If you can't make your monthly payment, face up to it and take steps to deal with it. Avoiding the problem will only make things worse.

Tip 2: Your lender is your friend.

The best way to avoid foreclosure is to maintain a dialogue with your lender. Although it may not seem that way at times, it is in their best interests to help you avoid foreclosure.

Tip 3: Do your homework.

It is important to know what rights you have should you go into default. Go over your loan documents so that you know what will happen and the time frame in which it will happen.

Tip 4: Consider talking to a housing counselor.

Housing counselors are available through grants from the United States Department of Housing and Urban Development. These counselors can take a look at your situation and help you get your finances organized. Some counselors will even represent you in negotiations with your lender.

Tip 5: Spend your money wisely.

When trying to avoid foreclosure it is important to spend money only on necessities. Take a look at your finances and eliminate unnecessary expenses so that you can make your mortgage payment and feed your family. Eliminate luxuries if need be, including cable TV, health club memberships, and eating out at restaurants. You should also consider delaying payment on unsecured credit cards if that money is needed for paying your mortgage.

Tip 6: Consider cashing out.

Take a look at your assets and consider selling them for cash so that you can pay your mortgage and any back payments you might owe. This includes higher-ticket items like jewelry, furs, cars, and boats. Lenders will be happy to work with people who are demonstrating that they will do whatever it takes to make their house payment.

Tip 7: Don't pay a fortune for someone to help you stop foreclosure.

While the vast majority of these companies are legitimate, they are simply offering negotiation services through a HUD approved counseling service (see Tip 4). In many cases, the HUD counselors will help you for free.

The important thing is to stay calm and know that there is help available for you.



Stephan Iscoe
Publisher,
MoneyMakersNews.com

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Learn the Insider Secrets of Buying Bank Foreclosure Properties

Discover Four Simple (But Not Easy) Steps To Real Estate Investing Success

Real estate investing is always good and sometimes it's red hot. When it's hot dozens of real estate seminars begin rolling across the country and thousands of people spend thousands of dollars for investing education.

It's startling to learn that of all those thousands of eager folks who attend these seminars only about 5% buy even one investment house. Why? The real estate gurus sell the "sizzle" and make profiting from real estate sound easy. The truth is that it's simple, but not easy.

Here's a quick plan that will enable anyone to begin building financial independence.

There are basically four steps to investing in single family homes:

1. Buy homes below full market value. Yes, people really do sell homes for less than the home's full value. The key is to understand that most home owners will only consider a purchase offer that is all cash and within 5% to 10% of their asking price.

The successful investor learns to find financially distressed home owners who have no choice but to sell for less than market value. They have lost their job or been suddenly transferred; they are divorcing; they been living beyond their income; the family has been overwhelmed with medical bills and, not uncommonly these days, their money has gone to support a drug habit.

Those are examples of motivated sellers. They have to sell and they will accept something other than a conventional, all cash offer.

2. How do you find motivated sellers? You work at it! Like any business it is important to develop a little marketing plan. One that is simple, yet very effective, is the one that was proven 75 years ago by the Fuller Brush company; door to door sales.

You are selling your skill as a home buyer to people who must sell. Your are there when they need you and you have the skill to help them solve at least part of their problem. With door to door prospecting you will learn more and buy more homes quicker than any other method. However, most people just won't walk door to door for three or four hours per week. OK, there are other ways.

You can watch public notices for the announcement of foreclosure sales. Meeting with a home owner right after they've received a notice that they are about to lose their home allows you to deal with a very motivated seller. Other public notices that provide buying opportunities include probate, divorce and bankruptcy. You can follow the Homes For Sale listings in your local newspaper or Internet site.

You can telephone the names found in these notices or, and this is the least time consuming, send a postcard expressing your interest in buying their property. It will produce buying opportunities, just not as many as personal contact.

3. After you've found a motivated seller you must understand how to frame offers that provide benefits for both you and for the home owner. A good real estate investor quickly learns that this is not a business of stealing property, but of solving problems in a way that benefits the seller.

The home owner is in a tight spot of some kind and you can save them from public embarrassment and, in most cases, give them at least a little cash to get a new start.

No investor can afford to leave cash in every deal. No one but Bill Gates has that much available money. You must use creative techniques like, leases, option and taking over mortgage payments. Little or no cash is needed for those deals. You can find plenty of reasonable priced educational material on those subjects in book stores or on EBay. The same education that seminars sell for thousands of dollars.

4. You make your profit when you buy! Never make a purchase until you've carefully determined exactly how you will get to your profit. If you hold it as a long term investment will the monthly rental income more than cover the monthly mortgage payment? Will you sell the deal to another investor for fast cash? Will you do some fix-up and sell the property for full value? Will you quickly trade it for a more desirable property? Have a plan before you buy.

There you have four steps that even a part-time investor can execute in three to four hours per week. What's the missing ingredient? Your determination and perseverance. If you will unfailingly follow the plan for a few months you will be well on your way to financial independence.

Stephan Iscoe
Publisher,
MoneyMakersNews.com

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Learn the Insider Secrets of Buying Bank Foreclosure Properties

Real Estate Investing in Bank Foreclosures

Loan foreclosures on real estate property provide a multitude of opportunities and challenges to a real estate investor. When a homeowner faces default on their loan and the possibility of a foreclosure by the loan holder, an investor has an opportunity to help the homeowner out of their problem and to make a profit at the same time.

No foreclosure situations proceed identically, but let's talk about some of the typical problems, steps, and resolutions. Large books have been written that cover the wide range of problems and solutions, but for the sake of this short article everything will be kept simple.

Homeowners miss loan payments for a variety of reasons, and when a homeowner has been delinquent on their payment for a number of months the loan holder, most commonly a bank, will issue a Notice of Default. The Notice tells the homeowner how much they owe in missed payments plus how much they owe in attorney fees and other penalties. The Notice also gives the homeowner a time period to be able to pay all that is owed and bring the loan back to good standing. If the homeowner can't pay all that is owed, then the bank has the right to insist that the homeowner vacate the property and the bank can then put the property up for sale or auction.

During this period of time between the Notice and the foreclosure sale, often called the pre-foreclosure period, the homeowner has the option to sell the property and to use the proceeds to pay off the arrearage that is owed. This pre-foreclosure period is also a time when a resourceful real estate investor has the best opportunity to help the homeowner with their problem. However, the homeowner who is in default and the investor have to find each other.

Since the Notice of Default is a recorded document and is made public, the investor can often view the Notice shortly after it is recorded. In most states and counties the Recorder's office makes the Notice public by posting it at the local courthouse or by posting it on their internet website.

The investor will generally find the Notice on the Internet and then contact the homeowner. Through a combination of letters, post cards, phone calls, and home visits the investor introduces himself or herself to the homeowner and suggests some courses of action.

Often the investor can take over the property and the responsibility for the loan by offering a reduced sales price or by taking over the loan altogether. This allows the homeowner to leave the property and the problems behind while the investor deals with them. The advantage to the homeowner is that they can avoid having a property foreclosure on their record, which would damage their credit score and their chances to purchase property in the future. In exchange the homeowner will generally willingly give up a large part, even all, of the equity that they had in the property.

Now the investor has an opportunity to make a profit if sufficient equity has been left in the property for him to make arrangements. For example, the investor may be able to pay off the arrearage, fix up the property, and sell it for a profit. That takes a fair amount of time and resources. The investor could also pass the deal along to an investor who specializes in fixing up properties and take a small but quick profit. Or the investor could sell the property at an attractive discount before the property goes to the foreclosure sale and make a profit without putting much of his own money into the transaction.

If there is not sufficient equity in the property for the above solutions to work, then the investor could negotiate with the bank to reduce the outstanding loan balance in exchange for a quick sale. That would save the bank from having to foreclose on the property and having the property become part of the bank's non-producing inventory for an uncomfortable period of time. This solution gives the investor the necessary equity to be able to make a profit.

There are numerous other scenarios, complications, and solutions, but this article has highlighted several of the more typical and common situations. In the transactions discussed here the homeowner benefits by being able to escape a damaging foreclosure and the real estate investor benefits by being able to make a profit on their investment of time and resources.

Stephan Iscoe
Publisher,
MoneyMakersNews.com

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Learn the Insider Secrets of Buying Bank Foreclosure Properties

"Subject To" Real Estate Deals Explained

"Subject To" real estate financing is fairly new on the real estate investing scene, mainly because many investors don't know what it is.

"Subject To" financing actually can be a win-win situation for both the seller and the buyer/investor if both parties understand their obligations to one another. The seller usually gets to sell his/her property at the asking price which was originally sought, and the buyer/investor usually gets the property with very little money down, if any, while not having to qualify for any bank loans.

We know, that traditional real estate investing is mainly about buying low and selling high, and making a profit from that difference, usually over time. There's absolutely no secret to that. While doing it this way, of course, you would incur all the paperwork and everything else that goes along with buying and selling a home like paying all the transaction fees that are involved like commissions, closing costs, title, recording fees and of course your time. On an average, the whole process usually takes a month and a half up to six months depending on the situation.

Creative financing, or "other than" traditional and/or conventional real estate investing, is basically working out an agreement that is fair both the seller and the buyer, without using banks or mortgage brokers. By incorporating this type of financing, the sellers can sell their property for the price they want, and in a timely fashion. The buyer/investor can create an environment for him/her to profit in some manner over a period of time.

By leaving out the usual suspects like title companies, real estate agents and loan officers, both parties stand to make the transaction more profitable for the buyer/investor and more cost effective for the sellers. Specifically this can be real profitable for the real estate investor because in any type of investing, and especially in real estate, it's about leverage. The leverage is what makes creative financing a powerful, profit-making tool for those looking to start a real estate investing business. The leverage is usually represented by how much money you put into a certain investment, and how much you make from that amount over time. "Subject To" deals make your leverage extremely high, since most of the time you place a small amount of cash, for usually a much lager return.

Let's go over a sample situation which would create an ideal environment for a "Subject To" agreement.

Debbie and Joe Blume bought their house five years ago for a $100,000 dollars. After 5 years, they now owe about $95,000 dollars, while their house is appraised for $160,000 dollars. Both Debbie and Joe have accumulated a credit card debt of about $20,000 dollars since that time, and of course, the interest on that debt is much larger than they really care to have.

Joe and Debbie take out a second mortgage to pay off their credit card debt, take a vacation and buy a new car. With their second mortgage, they do all those things and have about $10,000 leftover, after everything is done. After 7 short months, most of that $10,000 is gone also.

Shortly after this, Joe receives an offer within his company for a higher paying position, but in a different State. Joe and Debbie talk it over, and decide to take the offer and move out of State. Of course, deciding to do that, they must now sell their beautiful home.

Like so many of us, when we look to sell our house, we think logically and talk to a real estate agent. The agent informs them that there is little to no equity left in the house, and tells the Blume's that they will have to pay the agent's commissions out of pocket. Of course, Joe and Debbie can't do that, because they ran out of money and are basically living paycheck to paycheck until the new job starts.

Joe starts to worry a bit, because he needs to get to his new job out of State, within 14 days, and Joe and Debbie would like to spend a few days off together before going to his new job.

Joe starts to think and remembers a "We Buy Houses" sign down the street from their home and runs down and calls the number on his cell phone. After talking with the investor, Joe finds out that the investor isn't will to pay more than $120,000 for the house. Hearing that, Joe is mad and upset that such a person can come in with such a low and insulting offer. Besides Joe couldn't do that deal anyway because the second mortgage they took out last year, places their debt just about what the house is worth.

Getting worried and running out of time, Joe places an ad in the local newspaper advertising the house as a "For Sale By Owner".

Mostly everyone is trying to low ball him except for one guy who said "he will offer the asking price, so long as he can see the place first". Feeling excited and curious at the same time, Joe invites the man over.

A couple of hours later, Brad comes over and tells Joe that he is the one who called about the house. Brad tells Joe to explain to him a little about the house and his situation.

Joe spills his guts and describes his dilemma to Brad. After Joe finishes his story about his situation, Brad tells Joe that he thinks he can still offer the asking price and if Joe was still interested in selling?

But before they start agreeing any further, Brad says, that as an investor, that his primary motivation to make a profit on the house. Joe and Debbie understand that, so long as their asking price is met and the house is sold quickly.

Brad continues and tells both Joe and Debbie that because of his need to make a profit, he needs to offer an agreement which will satisfy both their needs. Brad continues and says "That offer is what's called a Subject To" offer. Of course bewildered and confused, Debbie and Joe ask what kind of program is that. Brad simply states, that it's a program that suspends both their money for the house and his profit on the house for 2 years, while Brad takes over the payments. Not fully understanding, Joe continues to listen to Brad's offer.

Here's what it entails:

>keep the current mortgage in place for 2 years, at which time the house will be sold, and Joe's originally asking price will be met, plus 5% of whatever profit is made by Brad

>escrow account is setup and paid by Brad to ensure full integrity of his contractual agreement with Joe
and Debbie

>property is claimed over to Brad which obligates Brad to continue making the existing payments to the escrow account. The deed will stay in the attorney's presence until the deal is fully obligated by Brad in 2 years

>relieves Joe and Debbie of the monthly debt for the mortgage payment so they can move on with their life

>Brad offers to pay closing cost and 2 months of mortgage payments to the escrow account to solidify his offer and his intentions to make good on the contract

After discussing the deal with each other and realizing that their options and time are running low, both Joe and Debbie agree with Brad over the details and sign over the deed to Brad via the attorney.

Brad then quickly rents out the house to cover the mortgage payments and manages the house as a rental.

Two years later, Brad sells the house for $210,000 and pays $160,000 dollars to Joe and Debbie's mortgage company, plus sends Joe and Debbie a check for %5 of the $50,000 dollar profits, which is $2,500. Everybody wins!

Best of Success,
Stephan Iscoe

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Learn the Insider Secrets of Buying Bank Foreclosure Properties

What You Need to Know about Deeds for the Transfer of Real Estate

by Bob Miles

The transfer of real estate involves particular dangers that are far more pronounced that the dangers involved in buying, say, a car or a hair dryer – and not just because real estate is more expensive either! One of the primary dangers is that the person who’s selling you the real estate doesn’t actually own it. This is more complex than you might think. Imagine shelling out a couple of hundred dollars for a prime parcel of beachside real estate only to have Paul Plaintiff sue you five years later claiming that Joe Grantor sold that property in 1895 to his great-great grandfather first as a passive investment, and then Mr. Grantor turned around and sold the same property in 1896 to the guy that sold it to the guy who sold it to the guy who sold it you. In that case a court might just award the property to Paul Plaintiff and you’d be sleeping on the beach digging for buried change with your metal detector. Of course you could always go after the guy who sold it to you in the first place, demanding a load of money from him. But this would do you no good if (1) he sold it to you under a quitclaim deed, (2) you couldn’t find him, or (3) if he didn’t have the money to pay you. In order to guard against this sort of thing, several safeguards have been developed and if you’re considering purchasing real estate you need to know how they work.

1. Title Insurance this is by far the most commonly used. A title insurance company will have their lawyer check the chain of title at the local land office to see if they believe there’s a possibility that there might be someone out there with a claim to the property that’s superior to yours (you can never be absolutely sure). If they’re satisfied, they’ll insure the title to your property.

2. Warranty Deeds - Warranty deeds will contain up to 6 warranties against title defects, and you can use them to sue.

3. Statutory Deeds – some states allow these types of deeds, and although they provide some protection, they are not as effective as warranty deeds.

Don’t buy real estate under a quitclaim deed without (i) carefully checking the chain of title, and (ii) demanding and receiving a deep discount on price to reflect the risk that your yard may be pulled out from under you some day.

DISCLAIMER: The following is intended for reference only and not as legal advice.


Real Estate Law in Plain English explains real estate law without the legalese.

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Learn the Insider Secrets of Buying Bank Foreclosure Properties

How to Buy Foreclosures at Real Estate Auctions

by John Ferreira

Attending The Auction -

A foreclosed property can be purchased at several different stages and sometimes they get auctioned off at an actual auction. There are several reasons why it would end up being sold this way:

1. The debt on the property is so high that if purchased before the auction there wouldn't be any profit potential.
2. The seller wouldn't sell before the auction
3. The seller can't be found
4. You have more cash on hand than time.

Anyone wanting to buy foreclosed properties at an auction should attend a few to get familiar with the way they work. They do present some great opportunities but some trappings as well. Some things you can expect are:

They are over very quick. You can be a few minutes late and miss it. Like any other auction there can be more spectators than qualified bidders so you can have the auctioneer verify everyone's qualifications by showing the required certified check before the auction starts. This way you know that the person you're bidding against is actually qualified to raise a bid and cause you to lose real money.

Any serious bidder must do thorough research on the financial situation of the property. You could bid up to $375,000 on a property valued at $500,000 and think you got a great deal then find out there was a $150,000 1st mortgage still in place. Knowing about this 1st mortgage you could verify your bid to be "above the 1st" and not "subject to the 1st" and so your bid would be from a base price over the 1st mortgage.

If you are the high bidder on a 2nd mortgage you can take over a 1st FHA or VA assumable loan. If the bank is the highest bidder on a 2nd they can substitute you and lend you the FHA money. The bank is usually the high bidder especially in states where auctions require all cash deals. Sometimes a private investor is the high bidder and sometimes the auction can be postponed all together.

Some things you need to know:

Depending on the state you are in, cash needed the day of the auction is 10% to 100%.

If you bid and win, then change your mind after putting down the deposit you can forfeit your deposit and be held liable if you change your mind.

Verify the bank's bidding instructions to the auctioneer because a lender may bid substantially less than the debt they are owed. The rules and laws vary from state to state but you can get much of the information on your local foreclosure procedures and bidding instructions from the sheriff's office or the court office clerk. Foreclosure properties can be a great way to make some very high profits in real estate in a short time but you must take the time to learn how to play the game and due the required research or else it can be a great way to lose money too!


Get tips and information on how to build your wealth the way most millionaires have; through real estate investment techniques such as foreclosure real estate and flipping at www.Real-Estate-Wealth-Builder.info

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Learn the Insider Secrets of Buying Bank Foreclosure Properties