The following article covers a topic that has recently moved to center stage--at least it seems that way. If you've been thinking you need to know more about it, here's your opportunity.
There are many ways you can make money on a foreclosure
1. It's really tempting to focus our energies on properties selling for 50% of their fixed-up value, which are rare to find, or most often snapped up even before ordinary investors get a whiff of it. Most people will find it easier, and more efficient, to focus on properties selling in the 65% to 80% of value range.
2.Seasoned investors find deals apart from the steep discount in foreclosed home prices like in very old loans that have been paid upon for many years.
3. Others find value from price appreciation in a "seller's market" where homes are appreciating rapidly in price.
4. Still others find value when the lender does not wish to deal with the property due to damage or necessary repairs, where the lender will accept less than they are owed on the property.
Is everything making sense so far? If not, I'm sure that with just a little more reading, all the facts will fall into place.
Now, how do go about finding these deals?
When payments aren't being made on a loan secured by real estate, lenders will often initiate default proceedings when the third loan repayment is missed. The owner still retains possession and can sell or refinance the real estate to save his credit history. These properties will usually be called a pre-foreclosure property by many investors.
Now, lenders cannot release information about their distressed loans due to privacy concerns, and homeowners often do not want to publicize their situation. There are alternate ways to find these properties, along with owner contact information. That source of information is usually the local county recorder.
If you do not have inside sources at the lending agencies then your best bet is the Country/Court Recorder. Virtually all documents regarding real estate transactions are recorded and filed by the county recorder/Court recorder. As the documents are in public domain you can access and search those documents. Most properties in default can be identified by the initial foreclosure document, which in most states will either be a Notice of Default or a Lis Pendens. A Notice of Default, or NOD, is used in non-judicial states, while the Lis Pendens is used in judicial states. Remember that just because NOD or Lis Pendens has been filed does not mean the foreclosure properties will go for sale!
Most county/court recorders have established searchable websites. Use the online recorders site to find properties by searching for those document types. That should get you a list of owner names and document numbers. If the documents are not online, you'll have to physically check them out at recorder's office with your list. Search by owner name or document number, and look at the document (Notice of Default, or Lis Pendens), which will reference the original loan, the property address and the default amount.
So now you know a little bit about Foreclosure. Even if you don't know everything, you've done something worthwhile: you've expanded your knowledge.
About Author:
Peter Lee
Site: Search Refinance Online
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