http://www.articletrader.com/ Articles at ArticleTrader en-us http://www.articletrader.com/finance/real-estate/6-reasons-to-love-bank-owned-foreclosure-properties.html http://www.articletrader.com/finance/real-estate/6-reasons-to-love-bank-owned-foreclosure-properties.html Thu, 11 May 2006 00:00:00 -0500
If the property fails to sell at auction, or if the lender ends up as the highest bidder, the home becomes REO, or "real estate owned" by the bank. Lenders then try to sell these REO properties on the open market, often through a real estate agent or third-party marketing company.

In markets where real estate is entering a slowdown, especially in those areas where foreclosure filings –notices of default are increasing, lenders face downward market pressures. Consider, lenders are not chartered to own and manage (REO) property; in fact, they face scrutiny and pressure from state and federal regulators to dispose of foreclosed properties quickly; therefore, banks will not hold property. They will sell at auction, no matter what the price is. This process takes time, but favors those investors or homebuyers who are diligent and knowledgeable regarding when and in what time to purchase foreclosure property.

6 Reasons to Like Bank Owned (REO) Properties:

• No property title issues - once you close, you get clean title policy without exceptions.
  
• No back taxes - banks have paid everything at closing.
  
• House is vacant - I can go there as much as I want before I close.
  
• I do not have to argue about "correct" amount of equity with the homeowner.
  
• You can pick an area - and start buying every good deal in sight.
  
• Dealing directly with the bank, can eliminate the 6 percent sales commission if they act fast - before the bank lists the property with a real estate agent.
  

Nevertheless, buying bank foreclosure remains the safest method of buying property. The process is easy and many risks associated with other forms of purchase are either eliminated or reduced in the bank foreclosure.

Finding Bank Foreclosure Listings

Generally, lenders are reluctant to share their REO lists with the public, although perseverance and knowledge can help, the best option is to develop a network of contacts. To buy bank foreclosure, scout for announcements or notices in the newspapers or from the courts. You can also contact a real estate agent for such notices or use a listing service.

A number of web sites listing bank REO foreclosure listings offer trial memberships, try a number of foreclosure listings sites and evaluate which offers the best most current listings. Take advantage of the free trial period offered evaluate their listings. The sites should offer the latest listings with daily/monthly updates.


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Offering insight into foreclosure investing strategies, John Appleseed uses his 15 years of real estate investing experience to write on bank foreclosures at www.forclosedproperties.com.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/the-basics-in-finding-and-flipping-foreclosures.html http://www.articletrader.com/finance/real-estate/the-basics-in-finding-and-flipping-foreclosures.html Thu, 04 May 2006 00:00:00 -0500 Buying foreclosure properties for sale at the auction is the most common and profitable ways to make fortunes out of foreclosed homes. You may have to move at the right time because many distressed homeowners would want to dispose of their property quickly.

Foreclosure properties for sale at public auctions are conducted under the supervision of the court of the county in which the property is situated. There are many kinds of real estate foreclosure properties that you can invest in for long and short term profits.

Before you begin investing in this kind of property it is essential that you arm yourself with a lot of information. Foreclosures take place if repayments on a loan secured by real estate are not honored.

As an example, Ohio law obliges the lender to bring a court suit against a borrower in order to obtain order for the sale of the foreclosure property. In such an event the lender is entitled to appropriate the security which is the real estate.

Having a solid understanding will enable you to find the best offers, locate properties in marketable states and help you make good realm estate investments. It is also recommendable to ascertain the foreclosure property laws in the state in which you intend to buy as they differ from each other. Many auction disasters arise out of overbidding which results when real estate investors do not take into account the market price of a property and the cost of repairing a home.

Doing Real Estate Market Research
It should not be a difficult task to make these assessments on a foreclosure home. You can readily obtain the necessary information from the court or from the lenders or lien holders. While a bubbling real estate market is positive for sellers, a slowing market favors the more careful buyer. Although it is fairly easy to profit in a booming seller's market, one has to carefully follow a well-planned strategy in a slowing, buyer's.

Before you make up your mind to acquire the property, you should undertake a lot of research to determine whether the house foreclosure you are buying will bring you profits. There are several factors to consider but principally you should look at the market value, ascertain the total debt, evaluate the expenses on the property and finally calculate your net profit. Determining the present market condition is easy once you understand what clues are present. Using the number of days required to sell a property that's comparable to what you're considering investing is the key. A number of sites offer the ability to quickly determine how long a property remains for sale.

Equity in a foreclosure home is simply the difference between the total expenses on a property and what its market value is. Therefore with an understanding of the market clues, making a determination of the market in three ways using days on market: seller's market 0 - 60, a flat market 61 - 90, or a buyer's market 91+ depending on the average number of days a property re.

Finding Quality Foreclosure Listings
As a real estate investor, you can find foreclosure list for free or at a price. Although both will provide you with information on available house, the difference between the two is of significant importance. Try a number of foreclosure listings sites and evaluate which offers the best most current listings. Foreclosure listings are public information and generally available at the local recorder's office.

Finding foreclosure properties can be done by visiting the local recorder's office and making photocopies, since listings are added on a daily basis, this can be daunting. Using the internet, a number of web sites allow searches by state, county, city, and zipcode. Since most foreclosure listing sites offer a free trial period, take advantage to determine if the quality of data and services meet your needs. A free listing service will only give you scanty information about which homes are going for foreclosure but a paid service will give you much detailed information needed to proceed with the sale or investment of the property.

Like with any product, an extensive search for and comparison for available foreclosure list will give you the best price and value for money. All the sites listed below offer listings for a fee. Take advantage of the free trial period offered evaluate their listings. The sites should offer the latest listings with daily/monthly updates. Therefore, in evaluating foreclosure-listing services, the quality of the listing or "freshness" is important.

Working With Real Estate Agents
The single most important aspect of foreclosure investing involves finding and working with a Real Estate agent. Picking the right real estate agent will make a buyer’s life much easier. There are agents who specialize in the foreclosure market, with specific experience in REO properties. But it’s also important to consider the agent’s knowledge of the area; their ability to close a deal; and their access to other professionals (attorneys, lenders, mortgage and title professionals) to ensure that the buyer is in good hands.

Since a majority of Real Estate agents focus on "traditional" real estate transactions, mentioning "foreclosures" might cause them to balk at potentially working with an prospective investor. “Buyer’s representatives” have the home buyer’s interests at heart, and are charged with finding the right property and negotiating the best price for their clients.

Look for an agent with foreclosure transaction experience, as well as knowledge of local, regional and state laws.. Therefore, educating the agent on the opportunity of working with you is important. If a foreclosure property is being considered out of the area or state, then working with a local agent in that area -who can advise on the condition, knowledgable about the growth potential, advise on local conditions, is an important relationship to develop and nuture.

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Writing from his 15 years of real estate investing experience, John Appleseed writes on
foreclosure investing strategies at www.forclosedproperties.com.

Source: http://www.articletrader.com ]]>