Friday, December 31, 2010

Home Foreclosure Listing Best Way to Find Your Dream House

Are you behind on your mortgage

A home foreclosure listing may be the best way for you to find the house of your dreams or to start building a real estate empire. You can find a home foreclosure listing on the internet. There are a variety of free sites with individual bank listings. If you are serious about finding a home in this way though, you may wish to purchase a subscription service that combines lists from all over the internet.

There are many different kinds of listings. Pre-foreclosure home foreclosure listing is one that lists homes where the homeowner is behind on their mortgage payment. While traditionally people got behind on their mortgages when they lost their job or had major medical issues, currently many homeowners are in trouble because of badly written loan agreements.

When home prices were on the rise, many mortgage brokers wrote stated income or “liar loans.” These loans had introductory “teaser rates” of one or two percent. Some even included a period where the homeowner paid interest only. Of course, after a couple of years, this introductory period was up. The assumption was that at this point the homeowner would either be able to refinance and sell the home. When the real estate bubble popped, this became impossible.

As a result, there are any number of homeowners in pre-foreclosure desperate to find an investor who will participate in a short sell scheme to help them salvage their credit. When you get a home foreclosure listing, many of these pre-foreclosure homes will be available.

In a short sale, the investor purchases the home for less than the mortgage amount. The bank writes off the difference because it takes a bad loan off the books. The home owner walks away from a terrible situation without a foreclosure on their records. Everyone wins.

When a short sale has not been made, you get the next kind of home foreclosure listing: the foreclosure auction. When a bank is forced to foreclose on a home, after the court declares that the bank can sell the property, there is an auction which can sometimes take place on the courthouse steps. If you have a home foreclosure listing service, you will be alerted when these auctions are taking place. There is often limited competition at these auctions and you can pick up investment real estate for a song.

Often there are no qualified buyers at these auctions and the bank buys the home themselves. This presents you with the third kind of opportunity to use a home foreclosure listing: the bank owned property. When a bank owns a home, it has a number of problems. First of all, they are not in the business of renting out or selling homes at their maximum value. That means that these properties often sit unsold for a length of time. During that time, the bank must pay taxes on the property. An uninhabited home also loses value over time as people do not do the maintenance and upkeep on it. Vandals may also deface the home. If there are too many vacant homes in the neighborhood, the value of all of the properties also decline.

For these reasons, the banks are eager to get rid of the properties they own. They generally sell the homes at a 20 percent discount from their appraised values. If you can get a home foreclosure listing of bank owned properties, you can get yourself a deal.

Having a home foreclosure listing is just one step of the process though. You need to have the education to know how to take advantage of troubled real estate and also the financing to be able to pull off the investment.

Armed with information, financing, and a home foreclosure listing, you are on your way to becoming a real estate tycoon.

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