Click Here For Online Foreclosure Listings & Financing Programs

10 Tips for Investing in Distressed or Foreclosed Properties

1. Search on the world wide web for distressed or foreclosed properties as a starting point. Use a professional REALTOR to identify great foreclosure deals for you. You may be successful at searching the web on your own, but keep in mind some of the information is outdated, some may be incorrect, and some of the available properties are not even listed. A REALTOR subscribes to updated MLS listings and can offer you the most current information available.

2. If you search yourself for distressed properties and purchase from the selling agent, you are paying a commission to someone with a vested interest. Obtain objectivity in the sale by working with your own REALTOR. You won't pay any more. Technically, everyone works for the seller, since they pay the commission.

3. With distressed or foreclosed properties, time is of the essence. Purchasers must close on the date specified by the agency, and cannot close after this without penalties of $25-200 per day.

4. It takes 1-3 weeks to qualify a loan. If you are approved for a loan, make sure you are qualified by your lender as soon as possible. If you are paying by cash, make certain funds are available. If finances are in order, the REALTOR will then submit an offer. When the offer is accepted by both seller and buyer, the REALTOR will submit the ratified contract to the lender and closing agent. These steps will begin the process of a successful real estate transaction.

5. When purchasing a distressed property, always obtain 3-4 bids from different contractors to estimate costs of repairs, if you do not plan on doing the work yourself.

6. If you are going to sell the property after rehabilitating it, ask your REALTOR to research similar properties in the neighborhood to ascertain market price.

7. Keep copious records for tax deductions. Any expenses related to the purchase, repair, or maintenance of the property may qualify. Meticulous records are key to a profitable real estate venture.

8. The title you receive after purchasing a distressed or foreclosed property is a special warranty deed rather than a general warranty deed. Some buyers are alarmed by this, but there is no need to worry. The purchase of title insurance protects the buyer. Each lender purchases insurance to protect the loan as well. Titling insurance should be obtained by the property purchaser. It is always offered by the closing agent. Consider using an attorney instead of a titling company as your closing agent. An attorney is only $50-75 more than a titling company. A real estate attorney can remedy any situation that may arise. Therefore, they are more efficient representatives on time sensitive foreclosure properties.

9. Foreclosure properties require special addendums and special contracts by the individual bank and HUD office (where applicable).

10. Foreclosure properties are potentially the most profitable, but require the most attention to detail. A REALTOR experienced in foreclosure deals is highly desirable because the paperwork must be in order to submit a proper bid, and timeliness is critical.

About The Author

Elaine VonCannon is a REALTOR with RE/Max Capital in Williamsburg, Virginia, and she manages investment property as part of her business. Her husband Joe is a contractor who collaborates with her on rehabilitation of properties. She has helped numerous clients invest in and make money on property investments in Southeastern Virginia. vonmor1@cox.net

Click Here For Online Foreclosure Listings & Financing Programs

Foreclosure Site Map

Online Foreclosure Listings & Financing Programs
Government foreclosed properties are sold in all 50 U.S. states, Canada, Guam, Puerto Rico & the U.S. Virgin Islands at bargain prices. Agencies like HUD/FHA, VA, Fannie Mae, & Freddie Mac provide financing for foreclosed properties for as little as $0-$5% down. Foreclosed or seized Government homes can be a very good deal!

A Possible Bargain: Foreclosed Properties
At a time when real estate prices are soaring there are still many opportunities to buy properties that are 30%- 40% below market value. Foreclosures are one of the best ways to find great bargains.

10 Tips for Investing in Distressed or Foreclosed Properties
Foreclosure properties are potentially the most profitable, but require the most attention to detail.

Foreclosure
Foreclosure under a mortgage requires a court ordered sale conducted by the sheriff or other court-appointed official.

Foreclosure Home Deals
Did you know that you can save tens of thousands of dollars on the purchase of your home by investing in a foreclosure or preforeclosure property?

Rehab Foreclosed Houses the Right Way and Keep All the Profits!
I've been teaching people how to buy foreclosure properties for a long time. And we all make the biggest profits on the deals that we rehab the right way. But this does NOT mean what you might think!

So, You Wanna Buy Pre-Foreclosures?
So you wanna buy pre-foreclosures? or at the courthouse steps? So many people ask us about this. Here's our '30 second seminar' on it. If you're going to buy PRE-foreclosures--after the seller is behind on her payments, but before the lender's auction date-then there are some pros and cons to consider.

Finding Southern California Real Estate Foreclosure Property
At one time finding distressed properties was primarily in the hands of experts that make a full time living purchasing southern California real estate foreclosure property. Things have really changed and the process no longer is limited to those in the know.

Death, Taxes, and Foreclosures
So how do you find the best foreclosures? Its not easy as the business is very competitive, especially in this current crazy real estate boom. Firstly you must be methodical as well as diverse. Deals are all over the place. It is recommended you specialize in an area that you are familiar with.

Getting Started in Real Estate Foreclosure Investing
With the increase in Real Estate property appreciation rates across America, a prospective foreclosure buyer may want to fix up a property to improve its value to live in, to rent out or to resell.

Negotiating A Short Sale - The High Road to Huge Foreclosure Profits
Buying foreclosures can be extremely profitable for real estate investors. You can "create" your own equity by negotiating a "Short Sale" with the bank or lender. The concept behind the short sale is simple: your goal as a real estate investor is to convince the bank to sell for less that is owed as payment in full.

Cashing Out of Preforeclosures - Exit Strategies for Maximum Profit
One of the quickest ways to real estate profits is through preforeclosures.

Buying Foreclosures - Knowing Why Helps You Buy
Knowing why the owner is losing their home can help you connect with them and gain their trust.

From Foreclosure to Forbearance - The Art of Negotiation
As an active real estate investor you probably already know that the most important phase of your investment is when you buy the property. Most of us are getting the bargains in the foreclosure market.

The Value of Foreclosed Property
In general, foreclosed properties sell at a substantial discount and this discount is larger when foreclosure occurs early in the loan's life.

What is a Foreclosure?
Many people feel that they can purchase these properties for almost nothing and sometimes that is the case, especially tax sales. I know of some that have sold for less than a few thousand dollars.