Real Estate Foreclosures, by Peter Conti
It’s completely understandable…investing in real estate foreclosures
can be irresistibly attractive. The lure of landing quick profits from
40% to 50% or more is enough to get anyone’s attention! But if you’re
thinking about taking the foreclosure plunge it’s prudent to proceed
You have a small bucket of factors that’ll make the difference between
experiencing the thrill of investor success, or the agony of
foreclosure defeat. You need to have the right knowledge and walk in
If you’re new to investing…lets start off simple.
Foreclosure is a legal process whereby a mortgage holder, such as a
bank, takes over possession of a property due to default on the Loan.
In the US, some states have what’s called, 'strict' foreclosures. This
legality attempts to let the borrower have some time to make good on
back payments. The borrower is given period of time to bring the debt
current. Failing to do that, the title reverts to the lender.
You don't want to be in the middle of someone else’s legal headaches.
And some advise to avoid offering any kind of legal rescue in exchange
for part or whole ownership of the property. You absolutely MUST
educate your self with accurate information from those with experience
in this area. And there are ways to creatively help others solve their
foreclosure problems with win-win methods.
In addition to accessing accurate legal information for your location, here are some other considerations for you…
Some legal foreclosure proceedings allow the borrower to have the
'right of redemption'. This gives them a finite period to 'cure the
loan'. In other words to make back payments or strengthen their credit
so they can reclaim title to and possession of their property.
For more information about Real Estate investing go to:
Investing with the Stars, Owner and Founder