Focusing On Foreclosures is a step by step primer in the art of acquiring foreclosure real estate. The book walks you through the foreclosure process to determine the best strategy to use for your situation, as well as, the property owner and lien holders position.
Learn how the experts buy Pre-foreclosures by starting at the beginning of the process - when the lender files a complaint against the property owner (up to 2 years before the actual Sheriff's sale). This is the point when the property owner is highly motivated to make a deal rather than face the prospect of loosing the real estate and destroying their credit. This strategy can command the largest discounts - up to 60%. Learn successful techniques for negotiating with troubled property owners to translate a problem situation to a Win/Win solution.
Diversify your strategy by purchasing the mortgage at deep discount from the Lender (short sale) and setting your upset price at the Sheriff's Auction. Negotiate with subordinate lien holders to control the property for "pennies on the dollar".
Learn techniques for bidding at the Sheriff's Auction to avoid "Auction Fever" and minimize your costs. Discover how to protect yourself from unusual liens by buying REO (Real Estate Owned) from lenders while negotiating a significant discount using proven professional techniques.
Before jumping in to your first deal, this book will help you target your goals. Your criteria may be very different depending on whether this is a home to live in or an investment property. Use the enclosed worksheets to target your geographic area, determine your housing/investment needs and discover how much you can afford.
After you set your goals, the book describes how to be an effective detective. There are several information sources which list pre-foreclosures, foreclosures of government agencies (RTC/FDIC) and REO's. The book discusses the advantages and disadvantages of each type.
A drive by worksheet is included to record information about each prospective property. After the drive-by, any properties not eliminated must be fully researched. The book details some unusual information sources to compile your information reserve about the property. For example, did you know the tax assessor for the town can tell you the number of bedrooms and other interior improvement as well as any impending assessments? But you have to know how to ask the right questions.
Your detective work is not complete until you visit the Hall Of Records to research the mortgages, deeds and liens. The book describes, in detail, how to perform this research including determining if there are any superior federal or tax liens.
Before you make a deal, you must determine what the foreclosure property is worth and apply the simple formula provided in the book. Using the research you have already obtained, you adjust the comparables for your target property and apply a discount for your level of risk. We'll show you how to compute the cost of the liens and equity of tenant security deposits to determine your baseline deal. Discover creative ways to secure temporary financing to acquire the real estate, as well as, long term financing.
There are special techniques to make a successful deal. There are literally hundreds of questions to be answered before you can determine if this deal is the one for you. We address them thoroughly in our text, before any contact is made with the owner of the property or the attorney for the lender. In fact, the book shows you how the foreclosure property owner will contact you!
You only have one chance to make a first impression and first impressions count. Your prior research, will give you the facts to increase your credibility with the lender as well as test the honesty of the property owner. The steps outlined in this book give you a successful tract and lead you to the most profitable deal.
From the Author
After publishing the monthly magazine, Foreclosure News, reader response was overwhelming. I was spending hours on the phone describing the process to buy foreclosures and realized a concise step by step "textbook" was needed to lead investors and home buyers through the process. We have also used this book as a "textbook" for our Foreclosure Seminars.
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