im looking into getting a foreclosure home, but i dont know too much about the process?
Hi,
I am looking into buying a home and i noticed that there are alot of foreclorures homes around my area. can anybody explain to me how the process works. lets say that there is a balance of $50,000 on the house.
need help please
I have several clients taking advantage of foreclosures and the most important thing is to have cash in hand. Figure out a way to gather the capital. I have some clients that use the equity in their home, go to the courthouse steps by the foreclosed property, flip it, and come pay of the equity note and hold onto the profit. Doing this several times will create a situation where you no longer need to borrow. Also look into 1031 Exchange to avoid capital gains taxes on your property.
Chappy is right, its rare to find a great deal on a bank foreclosure, but sometimes you get lucky..look into tax lien forclosures as well.
I was actually looking at those too in Georgia but I found what they do is they bid at the price of the foreclosure and they go from that and sometimes if the owner of the knows about they normally would want you take over the payments of the house.
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LikeDislikeSee your bank!
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LikeDislikeComing from a banker’s prospective I’ll tell you what we do and considering most mortgages are through banks this is more than likely the way it’s going down.
The bank has to auction the property at a foreclosure sale by law. In most cases the bank will be the opening bidder and will bid what we are owed on the property plus any fees/expenses we incurred during the foreclosure process. I’ll be honest with you here, in most cases you will not find a great deal on foreclosures, if someone has that much equity in their property they can simply sell it, pay off the bank and come out on top. There are some instances where you might do alright in purchasing a foreclosure but this usually isn’t the case.
My advice is to try bigger banks as they will have more properties and in turn more likely have more real estate owned (REO). REOs are bank-owned properties (foreclosures), these REOs cost banks lots of money in fact it costs us $7 for every $1 in REOs as far as our lending capacity goes with the regulators. With that said it is in the banks best interest to get rid of REOs as soon as possible. The bigger the bank, the more REOs they will have and the more likely they will be to sell the properties at a loss.
Good luck with this, hope I shed some light on the subject.
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LikeDislikeI have several clients taking advantage of foreclosures and the most important thing is to have cash in hand. Figure out a way to gather the capital. I have some clients that use the equity in their home, go to the courthouse steps by the foreclosed property, flip it, and come pay of the equity note and hold onto the profit. Doing this several times will create a situation where you no longer need to borrow. Also look into 1031 Exchange to avoid capital gains taxes on your property.
Chappy is right, its rare to find a great deal on a bank foreclosure, but sometimes you get lucky..look into tax lien forclosures as well.
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LikeDislikeThere is some info on this web site that may prove helpful to you as well. http://www.thehomesteadgallery.com. Click on "Can we talk".
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