I am buying from a company that buys large numbers of delinquent paper and either forecloses or sells to local investors. good input/feedback is always appreciated!!
2006-12-20 12:13:42 · 4 answers · asked by Darren D 1 in Business & Finance ➔ Renting & Real Estate
get a home inspection and an appraisal first
2006-12-20 12:19:34 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I used to dabble in this and it's a very good investment. Especially, if it's a first deed note for a loan. Because it's in foreclosure, you have to satisfy or buy it out from the main lienholder. If you have the funds to do it. You should grab the opportunity. However, make sure there are no other liens on it. The credit balance might be more than the loan and the value of the real estate. You have to consider all of this.
Make sure the investment company is out to protect its investors. Make sure the company knows everything about the foreclosing property. Find out if there are any hidden charges aside from their maintenance that they normally charge.
Hopefully, the property in question is unoccupied. Otherwise, you're bound to run into more obstacles. Make sure the investment company will do all the work for eviction. Make sure they investigated properly for any other major liens on it. Their responsibilities should include a thorough inspection and appraisal.
2006-12-20 20:27:35 · answer #2 · answered by rosieC 7 · 0⤊ 0⤋
Buying "distressed" property - individually or through a broker -
can be full of scams, defaults, and hassles!
I mean, how do you know that the company you'll be buying from didn't purchase "lost cause" delinquent paper for cheeep, and pass them on to unsuspecting "first timers" for a profit?!
If you want to buy and "flip" foreclosed properties, you might look at this website: http://www.hud.gov/homes/homesforsale.cfm
This site has links for foreclosed properties for sale.
HUD and VA make it pretty easy to purchase their foreclosed property. And, once you start working with a local realtor who handles these types listings...... You might hear of some real sweet deals!
Good luck!
2006-12-20 22:12:57 · answer #3 · answered by OShenandoah 3 · 0⤊ 0⤋
Trying to foreclose on a house can be nasty business. Depending on the state, the courts may be reluctant to kick a family out of the house due to foreclosure, especially if there are young children in the house (no judge wants a reputation of putting little children out on the street if they want to be re-elected). Some people may also damage the house before they leave just out of spite. I've heard horror stories about people destroying every bit of sheetrock and fixtures in the house, effectively gutting the entire house before they leave.
2006-12-20 20:22:47 · answer #4 · answered by jseah114 6 · 0⤊ 0⤋