Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Charles asks…

How do I get in on the foreclosure home action?

I live in South Carolina and would love to know if there are any decent foreclosure homes in my area. But everytime I try to look something up online (Hud, etc.) they want a fee or a free trial… provided I give them my credit card number. Is there a bank I could contact, or maybe police auction?

Your Questions About Foreclosures

The Expert answers:

Http://infoonforeclosures.blogspot.com

Your Questions About Foreclosures

Ruth asks…

Can i buy a foreclosure home 30,000 and sell it to a investor for 50000 that same month?

I am about to get a good settlement and want to invest in this foreclosure homes. I heard u can go and buy some at ur local banks, but can i sell it the same month to a investor for double the amount? Some investors don’t even look at the house, they just give a price based on the year and how much it may be in the market.

Your Questions About Foreclosures

The Expert answers:

In Illinois and some other states, this practice is illegal under certain circumstances. If your plan is to buy homes directly from foreclosure victims and then resell them immediately for a profit, it would be illegal in certain areas. This is basically an equity skimming scam and if you are caught, you could get in serious trouble.

This has become a serious problem, because investors convince foreclosure victims to sell their home at a very low cost. They do this and claim to be helping these people avoid foreclosure. In reality, they are hurting these people and making it much harder for them to recover from foreclosure.

I believe if you are purchasing from the lender/REO/Trustee these laws would not apply.

But as another poster said, why would someone pay you so much for that home, when they could have just as easily purchased it for the lower price themselves.

Based on your knowledge of real estate and the current real estate market, I would highly recommend investing your “good settlement” elsewhere. There are plenty of “get rich quick” real estate/foreclosure schemes out there, but most are bogus and could end up costing you everything!

I have worked full time in the foreclosure industry for over 10 years now and I know more people who have lost money on foreclosure properties than have made money. Foreclosure investing is risky business and requires a lot of knowledge and patience.

If you want to try the market out and you can afford to lose $30,000, then give it a shot. You may get lucky and you may find a buyer, but don’t do it unless you can afford to have that money tied up for a long time or completely lost.

You should also plan on spending additional money on repairs or improvements. If the lender is selling the home for $30,000, then it’s probably because it needs repairs or it’s only worth $30,000. You might need to take care of the repairs/improvements yourself to sell it for $50,000.

Good luck!

Your Questions About Foreclosures

Mark asks…

how come so many homes are going into foreclosure lately?

i don’t quite understand when i read the news articles, although i know it’s probably complicated. does it have to do (basicly) with the types of loans that were offered? or with the prices of homes?

Your Questions About Foreclosures

The Expert answers:

There is something called “sub-prime” lending that allows people to get around making down payment when they buy a home. (Conventional financing, you have to put about 10-15% down) You get a second mortgage for that part, too, so the entire price of the home is mortgaged. So, if housing market drops, now you owe more on the home than it’s worth. Many housing markets were overpriced lately, and now it is catching up. Add to that, some of the sub-prime mortgages were variable rate for 3, 5, or 7 years and the refinancing date is coming due…interest rates are higher than they were when the original loan was made and people can’t afford the new house payment.

Bottom line, people were buying houses they either could just barely afford, or were beyond their means. Creative financing was allowing them to do that, but it has caught up with them. They can’t even sell the homes and come out ok because prices have dipped and more homes are on the market, so it snowballs and you get more foreclosures.

The other thing I don’t think many first time homwowners realize is all the other “upkeep” costs associated with home ownership that you don’t have when renting an apartment. Things like utilities, property taxes, insurance, homeowner’s association or subdivision maintenance fees, home repair, landscaping and lawn care, etc. Etc. Can really add up—you can’t just look at what you are paying for rent and estimate that you could afford the same amount house payment; it doesn’t work like that!

Your Questions About Foreclosures

Lisa asks…

Who do I call for info about foreclosure homes?

Title agencies? Any specifics?

Your Questions About Foreclosures

The Expert answers:

There is a great company tat can be of great help to you.

QuadLakes, LLc 586-738-6541. Mr. P. Stiles

They are well seasoned in the foreclosure business.

Your Questions About Foreclosures

Nancy asks…

Is it difficult to buy a home @ auction that is in foreclosure?

Is it harder to get financing? Are there specific type of financial institutions that specialize in financing the purchase of foreclosure homes?

Your Questions About Foreclosures

The Expert answers:

Definitely harder to get financing. Hard money lenders will give money to almost anyone but a steep price, interest or collateral.

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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