Your Questions About Foreclosures |

Your Questions About Foreclosures

Your Questions About Foreclosures

Betty asks…

How would a general contractor get involved with banks and their foreclosures?

I am an assistant to a general contractor and he has put me in charge of finding new business. So my question is if we wanted to get involved with renovating or remodeling foreclosed homes that the banks own, how would we go about doing that?

Your Questions About Foreclosures

The Expert answers:

Most banks sell houses they have as Real Estate Owned (REO) as is and do nothing to repair them at all.

You might invest in several books on real estate investing, buying and selling real estate. There are several books that you might find interesting. Look for these books at your favorite book store.

For the ones that are in need of a lot of repair they normally sell to investors at a deep discount, where they fix them up for sale.

You and your boss might consider this, buying the banks worst problem properties for a deep discount. After buying them fix them up for resale.

You will run into a little resistance from the real estate agent that has been assigned to sell the property. They might not want to submit your low ball offers. Find away around this person, they are not living in the real world.

You are not looking for properties that need cosmetic repair,you are looking for properties that have major damage where a new owner would not want to repair. Yo are also looking for properties that have been sitting on the market for a long long time.

The best thing to do is enter the house

1. Make a list of all that is damaged and in need of repair.

2. Find out the market value of the house

3. Come up with a cost to make the repairs to the house

Once you have done this make a low ball offer on the house with first right of refusal. If the lender turn down your offer stick with your offer, ask for a counter offer. If you still feel as if the property is too much pass on it and move on to the next project.

Now the bank is not made up of idiots so make your low ball offer with intelligent repair cost, why the bank would benefit from your low ball offer.

You will need to have a small amount of capital for this type of investment, but over the long run you will be better off than trying to fix up properties for the banks. They will always low ball your estimate, causing you to lose time and effort attempting to get business from them.

Do this several times with several banks, pretty soon you will have all the work you can get.

There are other things you will need to know

1. How to get rid of the properties you repair for sale.

2. Getting finance for your buyers

3. Carrying some of the sales price to get rid of your properties so as not to have a large inventory on hand and nothing is selling.

4. Be creative with your buyers so you can get rid of the house and at least have an income stream coming in.

Watch out for selling everything, you have an Uncle that will be holding his hand out so protect yourself so you will not become a tax payer with no income. A few rentals would solve a few of these tax problems.

For tax and legal matters you should consult your tax consultant and attorney.

I hope this has been of some benefit to you, good luck.


Your Questions About Foreclosures

Helen asks…

Do those ads about government foreclosures really work out for anyone?

You know the ones that seem to promise cheap houses? Do people ever really get houses when they respond to those ads, or do they only receive some kind of pay-for-mail book that tells you how to get the house…?

Your Questions About Foreclosures

The Expert answers:

That’s junk here is the links to government properties

[ ] Real Estate for Sale by US Government Site #1

[ ] Site #2

[ ] IRS: Real & Personal Property Sales:

[ ] Acquiring a VA guaranteed home foreclosed by states:

[ ] Foreclosure requirement by HUD guaranteed loans:$%5Bno%5D&op1=AND&SECT1=TXTHLB&SECT5=MLET&p=1&r=39&f=G

[ ] Homes and properties being sold by the different departments in US Government:

[ ] USDA Properties for sale all states

Your Questions About Foreclosures

David asks…

How does Senator Obama plan protect home ownership by drastically reducing foreclosures?

How will he be able to stengthen the housing market?

Your Questions About Foreclosures

The Expert answers:

Here is what hillary is proposing to do:

she’s going to put a freeze on foreclosures.

What this will do is make everybody else pay for the homeowners’ misfortunes.

Should she prevent these lending companies from getting their money and/or foreclosing on the properties, the lending companies will simply raise interest rates on credit cards, loans, etc. In order to recoup their money.

What she’s proposing is a very bad “solution” for all americans.

Obama wants to create a $10 billion fund so that these folks can get a low-interest loan to help bail them out. This way, all of america won’t have to pay the price for bad decisions made by a few.

Your Questions About Foreclosures

William asks…

What will all of these homeowners going to face once their foreclosures are done>?

What is the longterm fallout other than credit damage? Garnishments, phone calls from creditors. Can it really be so bad?

Your Questions About Foreclosures

The Expert answers:

If you have a foreclosure on your credit report, you can bet that your credit score will be pretty crappy for awhile.

If you only had a first TD on your home, you don’t have to worry about any other fallout, unless you are in a recourse state. A second TD holder may turn you over to collections, but this is usually all that they do. If you don’t appear to have income or assets, the likliehood of a judgment is low.

You can always change your phone number.

Good luck!

Your Questions About Foreclosures

James asks…

How exactly do police deal with foreclosures in gang neighborhoods?

I would think there would be violence against the police officers if they
came into a house in a gang neighborhood and demanded the people evacuate the house because they don’t own it anymore.

So, how do they handle the situation?

I am very happy I live in a very nice neighborhood, but I was thinking about it and I am wondering how police handle the situation.

Your Questions About Foreclosures

The Expert answers:

The constable shows up with a moving truck and they clear the house out…End of story

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Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures

Your Questions About Foreclosures

Your Questions About Foreclosures