How do I purchase a foreclosed home and flip it.?

Answer 1

Some of the advice above is good and I am not going to repeat it. The best way to find foreclosed property is by contacting a real estate broker to keep an eye out and/or by contacting your local bank lenders (i.e., Home Savings and Loan, World Savings and Loans, etc.). But before you buy, by all means have an escrow company give you clear title (making sure there arent any outstanding property tax liens , mechanic liens,IRS liens, etc.) before opening your wallet... Clear title is very important. One time a bough a foreclosed property from a bank (the second foreclosed and paid off the first) but before I closed the deal I bought title insurance from an escrow company (they do the title search and file the deeds for you). About a yr or so later a received a letter from the IRS asking for their interest in the property---Apparently the second missed the IRS lien both times when they loan the money to the previous owner and when they paid off the first deed of trust. My title company also missed the lien when it gave me clear title... to make a long story short, the title company ate the IRS lien--close to $15,000. Moral of the story: always buy clear title insurance! Good luck!

Answer 2

Purchasing a foreclosed home for flipping depends on where in the procedure you decide that you want to purchase the property.

#1 Pre-foreclosure- The property owner has missed several months of payments and most likely is still living in the house. The lender might or might not have started foreclosure procedures on this individual.

You find a way to seek out and find these individuals. You offer them something for their equity in the property. Check for any repairs that might be needed. Find out how many months they are behind in monthly mortgage payments and the fees charged for being late. check on the insurance policy as well as the taxes owed on the property, because if they have failed to make their monthly mortgage payments they have also failed to make their insurance and taxes. See if there are any other liens like a 2nd or mechanics lien.

Now check and see if you can find out how much the property is worth. If the money you have to give to the owner plus the back payments and fees as well as any repairs that need to make. What ever is left is your profit. If you think this is enough for you, then go ahead and complete the transaction by opening escrow or getting a closing agent as well as a title company.

#2 Sale or bid- at this point you must have in your possession and be able to prove it before you can make a bid cash, money order, cashier's check or a check drawn on a bank that do business in the state where the property is located. This amount must cover the minimum bid and that includes the mortgage balance any late fees and other funds the cost of any funds to cover the foreclosure.

#3 If no one get the property at the foreclosure sale, then you might find out the lender that now own the property, make a contract of what you are willing to pay them for the property, also send a check for 10% of the price you offered to pay for the property.You will need to tell them when and how you plan to come up with the rest of the funds to close the transaction.

#4 REO- Once it has become the bank's property they hire a local real estate broker to sell the property for as much as they can get for it on the open real estate market. If there is any damage the lender might take this into consideration when an offer comes in.

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

"FIGHT ON"

Answer 3

no longer plenty want for a realtor. it rather is a money-on-the-barrelhead deal. You quit the money, and the home is yours. If this could be a tax lien sale, in some (all?) states, the unique proprietor has as much as a year to make stable on the lower back taxes and reclaim the abode. If this occurs, you get lower back your cash and turn over the abode (i've got basically heard of it occurring as quickly as - of somebody gets to the factor of a foreclosures, it is not going that their unexpectedly going to be able to make all of it stable lower back). If it rather is a loan foreclosures, the home is yours and that's the tip of it. info selection from one municipality to the subsequent, so examine with the county place of work to work out the way it works on your section. yet ordinary prepare is a stay public sale on the stairs of the county courthouse. while you are the winner, you will might desire to at present produce money, cashier's examine, or a economic business enterprise draft for, usually, the completed purchase fee of the abode (some places take a large deposit, with an afternoon or 2 to pay the completed fee). it rather is the massive reason that they do no longer seem to be extra opposition in foreclosures auctions -- you will possibly be able to desire to have money available for the completed purchase fee.

Answer 4

If your going to do a quick flip, I would recommend to buy Pre-foreclosure properties instead of foreclosed/bank owned property!
You can do more with them when the bank doesn't own the property. In pre-foreclosures, you can get way better deals and you have more leverage in negotiations with the bank if you are going to cash any loans out and/or do a short sale. A juicy short sale could give you Thousands in Free Equity!

I would recommend trying to get Chris Harris from http://www.scbuyshouses.com
as a coach/mentor if you are unfamiliar with any of the buying, selling, holding and/or short sale stratagies.


Good luck in all of your business ventures!

Answer 5

it depends on your location. i bought some in pittsburgh. you can get places there for less than $5k. now if you go out west the places are newer and the deals aren't as good. you can look on ebay and go to google and type in forclosures. there are plenty of sites, usually pay sites, that give you good info. this is how i got mine. most of the best deals are in the northeast and midwest though. look at "rustbelt" cities, such as pittsburgh, detroit, cleveland, cincinnati, baltimore, buffalo, etc. you can really get homes for less than $5k there and then resell it. many of these homes sell for $3,000 and are appraised by the county at $30,000 or so.

Answer 6

Simple, just locate a property 40%-60% below value, then make all necessary repairs and sell it at market value.

Answer 7

What does home mean?