Dorothy M. Neddermeyer, PhD

The majority of investors seldom think of real estate foreclosure investing as the highly profitable investment that it is. Why, because most people don?t have the time to learn the secrets or do the leg work to find properties in foreclosure, or they are reluctant to trust foreclosure investing advertisements ?foreclosure auctions or sales through lenders.

RealtyTrac? (www.realtytrac.com), the leading online marketplace for foreclosure properties, released its May 2006 report?Colorado, Georgia, Texas post highest rates. U.S. Foreclosure Market Report shows 92,746 properties nationwide entering some stage of foreclosure during the month, an increase of less than 2 percent from April 2006, but still a 28 percent increase from May 2005. Report results indicate a national foreclosure rate of one foreclosure filing for every 1,247 U.S. households during the month. RealtyTrac publishes the largest and most comprehensive national database of pre-foreclosure and foreclosure properties, with more than 600,000 properties from more than 2,500 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate, AOL Real Estate and Knight Ridder Online.

Currently there are 13,318 pre-foreclosure properties in Maricopa County reported by
RealtyTrac?. Seventy-five percent of these homeowners will avoid foreclosure. How? They will be saved by Pre-foreclosure real estate investors, the investor, who understands foreclosure investing secrets.

Experts predict foreclosures will increase nationwide in the coming months if the rate of home appreciation remains slow. This foreclosure prediction is the same in every area of the country. The economy is slowing, people are losing jobs and they can’t keep up with mortgage payments. Tens of thousands are in the first stage of losing their homes?pre-foreclosure!

There are three stages to buy a foreclosure property:

? Pre-foreclosure

? Foreclosure auction

? Buying from the lender after the foreclosure sale

? A fourth investment opportunity is reinstating the home owner?s loan. A licensed real estate agent, who specializes in foreclosure investments, develops relationships with investors, thus when a home is in Pre-foreclosure, the agent turns to these investors, if the loan can be reinstated. Reinstating the home owner?s loan usually requires several thousands dollars. However, this type of home foreclosure investing can be part of your portfolio, if you know the secrets or you have developed a good relationship with foreclosure realtors.

Receiving a foreclosure notice, does not mean a homeowner will automatically lose their home. Real estate appreciation has allowed many homeowners to pull out their increased equity to pay what they owe or to sell the home and pay off the loan, avoiding a foreclosure battle. Those who have already refinanced or used a home equity loan and spent the money or there isn?t enough equity, do not have a hedge against foreclosure. It is, also, predicted that many homeowners with ARM loans face a difficult refinance picture.

The Mortgage Bankers Association of Arizona reports nearly 40 percent of all home loans in metropolitan Phoenix are adjustable. Nationally, about 30 percent of all mortgages are ARMs.
Mortgage Bankers Association of Arizona reports, the number of subprime ARMs jumped by 50 percent in the state last year, making the situation potentially worse for Arizona’s housing market. The Subprime loans, which carry high interest rates, typically are taken out by borrowers with poor credit histories.

“Record numbers of people lured by low initial teaser rates have taken out adjustable-rate mortgages that are putting them in vulnerable positions as rates rise,” said Jay Luber, a vice president with First Horizon Home Loans in Phoenix.

This creates a perfect opportunity for the informed real estate investor to come to the rescue of the distressed homeowner, and at the same time make a good return on their investment.

It’s a win-win proposition. You, the real estate investor, can help the homeowner save their credit and make a nice profit at the same time. This is called Pre-foreclosure real estate investing. ?Pre-foreclosure is where the most return on the investment can be made,? states Don Myers, real estate agent and Pre-foreclosure consultant at the Arizona Department of Foreclosure Assistance, Inc., a non-profit organization, Tempe. AZ–DonBMyers@gmail.com

If real estate Pre-foreclosure investing sounds like something you want to know more about, here’s a recommendation??Contact a Pre-foreclosure real estate specialist. Unless you know the secrets, it is difficult to find and move quickly enough to get in on the ground floor of the majority of opportunities. Don’t make the mistake of spending thousands on programs offered by TV Pre-foreclosure pitchmen,? Myers stated, ?a Pre-foreclosure specialist does all the leg work and offers you the opportunity to invest or pass. With a real estate foreclosure specialist you know you are on firm legal ground in every investment.?

A licensed real estate professional, who specializes in foreclosure, is the secret to foreclosure investing success. Pre-foreclosure real estate specialists look for new investors and that new investor could be you.

Dorothy M. Neddermeyer, PhD, author, speaker, and inspirational leader shares her secrets to real estate investing. Dr. Neddermeyer empowers people to view life’s challenges as an opportunity for Personal/Professional Growth and Spiritual Awakening. http://www.drdorothy.net

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Donny Lowy

The foreclosure rate has been steadily increasing this year. The rate might continue to increase if the job market slows and we see a general slow down in the economy. Realestateinternetstrategies.com explains how impending foreclosures can be stopped.

Life does not always unfold as we wish, and one of the sad facts of life is that lay offs, business closings, and unexpected expenses, do take place. Many homeowners who experience any of these situations can soon see themselves facing a foreclosure of their personal property.

Receiving a notice of an impending foreclosure usually falls in line with financial constraints, so for the most part it is expected by the homeowner.

Foreclosure proceedings can take up to a year, depending your local regulations. Most lenders will initiate foreclosure proceedings when four payments have been missed. This means that time is of the essence to property owners when it comes to dealing with foreclosures.

An important fact needs to be kept in mind. Banks and lenders are not in the business of buying and selling real estate, so for the most part will want to work out an arrangement that will keep you making your payments.

This way the bank can avoid the expense of foreclosing on the property, and then the lengthy period and expenses spend in selling the property back into the market.

It is for this reason that www.realestateinternetstrategies.com explains to real estate owners that there are solutions that can help them avoid foreclosures.

?One of the first things a property owner must do is contact his lender and notify the lender of his personal situation. Only then does an opportunity create itself for avoiding a future foreclosure,? said Donny Lowy.

Among the recommendations found in www.realestateinternetstrategies.com is the refinancing of a property, mortgage contract review, and selling the property.

The most important concept to keep in mind is that lenders do want to work with property owners to avoid foreclosures. Banks need their loans to be recorded as performing loans which in effect helps their ratings remain higher.

But at the end of the day, if a lender does not receive payment, or come to a financial arrangement, the property will be foreclosed.

Donny Lowy, the CEO of http://www.closeoutexplosion.com, an online wholesale and closeout business, and http://www.wholesalecloseoutforum.com, an educational resource for the wholesale and closeout business, launched http://www.realestateinternetstrategies.com to help real estate investors use the Internet to buy and sell real estate.

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Mark Sumpter

While the number of new mortgages boomed between 2000 and 2003, foreclosure rates also hit record highs. Conditions have improved somewhat since mid-2003: over the last two years the foreclosure rate has flattened. The delinquency rate has also improved slightly with the number of delinquent loans hovering near 4.4%, down from highs of almost 4.8% a couple of years ago.

Yet more homes are being foreclosed upon than ever before. Why? While the foreclosure rate has remained fairly static, the rate of home ownership in the United States has continued to increase. Stephen Blank of the Urban Land Institute, quoted in the St. Louis Daily Record, cautioned that, ?The level of home ownership is reaching unhealthy levels ― cited at 70% of the population, and moving towards 80% ― which foretells of a looming increase in foreclosures.? In effect, the percentage rate has remained flat, but the total number of homes in foreclosure has risen due to increased home ownership. More homes are owned ? and more homes are being foreclosed upon.

Experts predict the trend will continue. Home ownership is at record levels and interest rates have remained at historically low levels for a number of years. In addition, over 150 different types of mortgage loans now exist, allowing purchases by consumers who would not have previously been able to qualify for a home loan. Buyers enjoy zero-down mortgages, no-documentation loans, 106% loans to allow for no-cash closings, and even 40-year mortgages. Looser lending standards contribute to high foreclosure rates because owners with no equity in their homes find it easier to simply walk away from their mortgages. And if interest rates rise, many of the ever-increasing number of homeowners with ARMs may be unable to obtain suitable replacement financing or to meet the new, larger monthly payments required when the initial ARM term expires.

Studies show that a loan?s default risk is directly tied to the size of the down payment: the lower the down payment, the greater the likelihood of default. Even in cases where down payments were made, low interest rates have encouraged growth of home equity loan advances and cash-out refinancing, allowing homeowners to take out cash generated from down payments and from appreciation. The Census Bureau estimates that in 2004 approximately $569 billion in home equity was extracted through refinancing, taking out second mortgages, or simply pulling out cash during a move. The less equity that remains in a home the higher the likelihood of default, and with cash-out extractions continuing to rise, more and more homeowners are at risk.

Liberal lending standards have also led some consumers to borrow more than they can afford: the Census Bureau recently released statistics showing that the average household spends almost a third of their income on housing costs, up from about 20% in 2000. As a result, financial difficulties like the loss of a job, unexpected medical costs, or other emergencies quickly put a homeowner?s mortgage in jeopardy. Rising consumer debt burden means almost any disruption in financial circumstances like lost income, illness, or divorce can seriously impact a homeowner?s ability to make payments.

What?s the result? When interest rates rise, foreclosure rates will rise. And if the real estate market flattens or dips, homeowners with ARMS or interest-only may find themselves upside-down on their mortgages? with foreclosure their only real alternative.

Mark Sumpter is an investor who is also an expert in the field of buying and selling pre-foreclosures. Mark?s website http://www.ShortSaleExpert.com offer 52 free coaching tips related to building wealth in real estate investing and short sales.

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George Roddy

One big potential deal-killer in buying foreclosures is the homeowner. If the homeowner does not trust you, buying their home (even at a foreclosure auction) can become a greater challenge. To prevent this setback, you need to build trust with the owner — and building trust requires you understand where they are coming from.

People don?t stop paying their mortgage because they don?t want to pay, but rather because of factors that afflict everyone at some point in time. Knowing why the owner is losing their home can help you connect with them and gain their trust.

Three Main Reasons People Lose Their Homes

1. Job Loss - Due to economic conditions employers are having to release great employees because of many factors and people do not have the reserves to withstand many months without a paycheck. More importantly, although some are getting employment within a few months, the pay rate is substantially less.
2. Divorce - In 1999-2000 this was the leading contributor to the foreclosure rate. Since 2001, the rate has not decreased but job loss has doubled in some parts of the country.
3. Bad Health - People fall ill and make a choice between making a mortgage payment or paying doctor bills. In some people’s minds, the latter easily takes precedence over everything.

Armed with this understanding, you will be much more likely to gain the trust of the homeowner when you meet them, than going into the meeting blind.

ABOUT THE AUTHOR:

George Roddy, Sr, owner of Foreclosure Listing Service, Inc., has provided timely, accurate, useful data regarding foreclosure real estate in Texas since 1964.

Learn about their “How to Buy” workshops at their Foreclosure Listing website.

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Bill Carey

People lose their homes to foreclosure everyday. Thousands each month across the U.S. it is an epidemic a financial epidemic that is sweeping this country. People who in most cases through no fault of their own come into financial problems, job loss, divorce, medical emergency, accidents, job transfer, death in the family just to name a few and lose their homes.

Here are some things that you can do to work through a foreclosure and may be keep your house or at least not have a foreclosure on your credit record.

1. Make up all your back payments make your loan current. Seems cold but if you do this early enough in the process you keep your house and your credit can be clean up fairly quickly.

2. Can?t make up your payments? Work with your lender to add the missed payments and interest on to the back of the loan or have them create a new loan with all the missed payments added in. Again you must start early in the process and be able to prove to the bank that you can make the future payments.

3. Sell your boat, sell the second car, sell your kids cars, sell the time share at the beach, and sell anything that can be used to make up your back payments and make your loan current.

4. Apply to another mortgage company for a new loan. Not very likely that it will happen but it?s worth a shot. The new lender may have a program just for you.

5. Ask your relatives for help to make your loan current. If they know your circumstances they may help, if they know you?re a deadbeat no way will they help.

6. Work with your lender, they all have in house teams to help you with your financial problems. Take your time give them the whole story. Pay something each month each week until you can get back on your feet.

7. If your lender has filed notices with the county court you will start to get calls and letters from investors and real estate agents who want to buy home. They do this through a process called a short sale where the bank does not foreclose on the property but takes less money than what you owe. You will lose the house, you will receive no money and your credit will be a mess for a long time.

8. If you have any equity in the house you should try to sell it, use a professional real estate agent. List your house at a fair price but below market value for a quick sale, take what ever you can get and move on.

If you can make up the back payments and get back on track with your lender this would be best. Work with a real estate agent to sell your home and pay off the loan. You can fall back on working with a real estate agent or investor for a short sale which will keep you from foreclosure if the bank will work with them. Do every thing you can not to lose your home in a foreclosure sale you will end up losing more than just the house.

Bill Carey with over 30 years in real estate sales, investments, and home building offers a unique perspective to the buying and selling process of residential real estate for F*R*E*E consumer information and reports log on to http://www.CharlotteNCExecutiveHomes.com and see
“Insider Real Estate Secrets Revealed”
…a must-read for Home-Owners and Renters!
It’s a F*R*E*E 12-lesson e-course covering more than 20 topics exposing the realities behind buying and selling a home.
It Could Make(or Save) You Thousands of Dollars

See http://www.BillCareyRealtor.com and sign up for our monthly e-newsletter with tips for buyers, sellers, home owners and soon to be home owners.

(Your Comments are Welcome)

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Kent Pinkerton

When you get a loan from a bank, you are usually required to put up an assurance of payment. This is usually a piece of real property whose value matches that of the amount you are borrowing. In the case that you fail to meet the requirements of the bank for repayment, the bank will have the legal right to repossess or get the deed of the real property. This act of technical default is called a foreclosure.

In the United States, there are two types of foreclosure. Depending on the state that you are in, the creditor or bank can enforce either a “strict foreclosure” or just a “foreclosure.” A strict foreclosure allows the bank or creditor to fully possess or own the title or deed of the property as full payment for the loan it granted an individual or business entity. Otherwise, upon failure of an individual or business entity to complete the repayment schedule, the court -through the sheriff or other officers- is given the right to auction off the property.

The bank or creditor that lent the money usually offers their bid on the property in this public auction. The public may know of this bidding through announcements or a disclosure of a list of properties foreclosed.

Real estate brokers often get foreclosure lists and bid for the properties. Most foreclosed properties are auctioned off at the amount or value of the loan the original owner had. Thus, the value may be lower than its true market value. By reselling these properties, the brokers often earn a few thousand dollars more.

More enterprising brokers look at pre-foreclosure listings for more properties. Preforeclosure listings feature properties that are not yet foreclosed or offered to the public for auction. You can have access to this information by joining or opening accounts on several websites dedicated to offering information on foreclosed properties.

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Jarad Severe

In most cases, when homeowners have defaulted on their loans, and have been
issued with some sort of notice of default, they will be bombarded with letters,
phone calls and knocks on the door from investors, attorneys and real estate
agents. You can use whatever approach you feel comfortable with, it’s really up to
you. Some investors will knock on their door or call them. I like to send them
letters with a business card.

Students always ask me, how do I find the homeowners phone number? One of the
best resources you can use is the internet. There is a website called infospace.com.
It’s database has millions of names and phone numbers of people across the
country. I have used them several times when I’m trying to find individuals. It’s
a little scary in a sense when you see how much information is on there. You can
also use next door neighbors. Most of the time they have friends in the area. Ask
the neighbors who their close friends were in the neighborhood. There is always
someone close by they gave their new phone number to.

When you send out letters to homeowners, which is what I personally like to do, it’s
a good idea to imagine if you were in their shoes. Keep in mind they’ve received
several letters from attorneys, banks and possibly other investors or real estate
agents. So knowing this, you’ve got to be different. People in this situation are
usually embarrassed. So keep that in mind as well.

First let’s talk about the letter itself. You should always come across as non-
threatening. You never want to appear as though you are looking down on them or
they will just throw your letter away. You are sending this letter to them because
you want to help them. Your letter should come from the heart and be sincere. It’s
a good idea to personalize your letters inserting their first name. Let them know
who you are. As far as length, it doesn’t matter as long as it’s not boring to read
and you get your point across. I like to always include the line ?If this is not true,
then I apologize for any inconvenience this may have caused by sending this letter?
because there will be mistakes.

Now, when you send these letters you need to stand out, you need to be different.
So don’t put your letters in a standard envelope. Get creative. Go out and buy the
multi-colored envelopes that look like wedding announcements or invitations.
Anything that looks like another letter from the attorney will probably be thrown
away. Personalize the front so it looks like it’s coming from a friend. And don’t
forget to throw in your business card with the finders fee on it. This will typically
generate a few more calls for you. It’s also a good idea to add testimonials of all the
other people you have helped.

One strategy that works well is to set up a 1-800 number. It’s free to use for them
and on every 800 number it captures the callers phone number, even if it is a
blocked number. So you can set up extensions with answers to questions
homeowners face when in foreclosure. Then you can follow up with each one who
calls your 800 number. For a sample of how this is set up you can view some of my
sample letters.

If time permits, I like to send at least 2 and sometimes 3 letters. Homeowners go
through many stages when they are faced with this situation. First they are angry so
they may through your 1st letter away. They they are in denial so maybe they will
throw your 2nd letter away. Then they become desperate so they begin digging
through the trash trying to find your letter and then the 3rd one arrives and they
call.

If you would like to see examples of letters you can send to homeowners in
foreclosure, I have collected a few to give you ideas or you can use them as a
template. If you go to
Sample
Letters you will find a few different samples of letters.
Remember to be creative. There is no right or wrong letter, however it is important
to test different ones to see which ones have a better response.

Jarad Severe is a leading authority and expert in Foreclosures. He is President and CEO
of Foreclosures and Flippers Inc. Jarad can be reached by email at:

info@foreclosuresandflippers.com or you can visit his website at:

http://www.foreclosuresandflippers.com to receive more information on foreclosures, short
sales and more.

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Mark Nash

With the rise in interest rate the number of foreclosed properties typically follows. Many investors are taking a fresh look at these opportunities. But they are not without risk and first-timers should tread carefully. Homes enter into foreclosure for non or partial payments by the lender holding the mortgage or for unpaid property taxes. The time lines can be long for any property entering into a fore closure and the debtor does hold rights to redeem the property by paying off delinquent monies owed during defined right-of-redemption periods. Some tips about foreclosures.

-Foreclosed properties are not in the best condition. After many months or years of neglect they become available. Expect surprises when budgeting repairs and renovations.

-With still adequate buyer demand for all houses, many properties are sold before they enter into foreclosure. Those that do are really the bottom of the barrel of the housing stock. Be careful, if nobody wanted before, will they now? Bad locations are not fixable.

-Neglected multi-unit building could also come with sour tenants. Investigate options for turning a apartment building around, it’s one thing to renovate and another to evict.

-Buy a home that is typical for the community. Look for three or four bedroom homes in a community of families.

-Stay away from modular housing that is considered personal property.

-Abandoned cars on foreclosed properties can bring environmental issues that are costly to repair.

-Purchase a home warranty for any foreclosure you purchase. The five hundred dollar cost is cheap insurance against major system repairs.

-Ask about special assessments. Sometimes people default because of proposed major expenditures by condo associations or for new streets and sewers.

-Don’t forget to have water wells and septic systems inspected.

-Odd shaped lots with large buildings that have grandfathered non-conforming uses can be problematic if the building is destroyed by fire or weather.

Mark Nash’s fourth real estate book, “1001 Tips for Buying and Selling a Home” (2005), and working as a real estate broker in Chicago are the foundation for his consumer-centric real estate perspective which has been featured on ABC-TV, Associated Press,CBS The Early Show, Bloomberg TV, Bottom Line Magazine, Business Week, CNN-TV, Fidelity Investor?s Weekly, MarketWatch, HGTVpro.com, MSNBC.com, Smart Money Magazine,The New York Times, Realty Times, Universal Press Syndicate and USA Today.

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Gerald Justice

First-quarter foreclosure activity in California increased to the highest level in more than two years and lenders sent 18,668 default notices to California homeowners during the January-to-March period. That was up 23.4 percent from the prior quarter and up 28.7 percent from 2005’s first quarter, according to DataQuick Information Systems.

Home sales and appreciation have slowed, a larger number of homes are available, California has lost several large employers to other states, interest rates have risen sharply in the last two years, rising consumer debt, and creative financing are all contributing to the ever-increasing number of foreclosures.

Since a larger number of us might be experiencing foreclosure at some point or know someone else who is already involved in one, it is more important than ever to understand the foreclosure process in California.

Background

California has an unusual foreclosure process that all lenders must follow. Much of this process is unique because a Deed of Trust is used to secure a Real Estate Mortgage.

A Trust Deed is a written instrument legally conveying real property to a Trustee and is used to secure a mortgage or promissory note. Under this system, there are three parties to the Deed: the ?Trustor? (the borrower), the ?Beneficiary? (the Lender) and the ?Trustee? (the Lender?s representative for this particular transaction). Trustees are typically other companies that specialize in providing those services.

In California, lenders may foreclose on loans in default using either a judicial or a non-judicial process.

Judicial Foreclosure

The Judicial Foreclosure is used when the Mortgage or Deed of Trust does not contain a Power of Sale and it involves filing a lawsuit to obtain a court order to foreclose. It is uncommon with most commercially available real estate loans and more typically occurs where a private party loaned the money rather than a traditional lender like a bank.

Typically, once the court authorizes the foreclosure, a property is auctioned to the highest bidder. With a Judicial Foreclosure, a lender may seek a Deficiency Judgment to recoup some of their losses. That simply means that when the high bid on the property is less than the amount owed to the lender, a judgment may be entered against the foreclosed owner for any remaining balances. That lender could then pursue other assets and/or garnishments against the original owner to satisfy the deficiency. The court may also issue a 1099 to the Borrower for the difference because the deficiency amount is taxable as income.

Non-Judicial Foreclosure

The Non-Judicial Foreclosure is used when the Mortgage or Deed of Trust includes a Power of Sale clause where the borrower has pre-authorized the lender to sell the property to satisfy the loan should they default. That power may be performed by the lender or the Trustee.

Non-Judicial Foreclosure Process

The stages of the Non-Judicial Foreclosure process include:

? Notice of Default (NOD) ? After the property owner fails to make the loan payments as scheduled; the foreclosure process begins by the Lender or the Trustee filing a NOD with the County Recorder in which the property is located. This document serves to provide public notice of the foreclosure as required by law. It is simply a written notice notifying the Borrower that he/she has not met his/her obligations under the loan contract and that the lender may take legal action for enforcement. The owner may be delinquent anywhere from 15 days to 12 months or more, but it is quite common that the first NOD will be filed after a loan is delinquent for three months. Once the NOD is recorded, the borrower and any junior lien holders are also given proper notification and the Borrower has 90 days to bring the account current with the lender.

? Notice of Trustee Sale (NTS) ? If the loan default is not resolved within the 90 days, the Lender will instruct the Trustee to record a NTS with the County Recorder’s office. By law, the NTS must contain the date, time, and place for the auction, the property address, a statement that the property will be sold at public auction, and the Trustee?s name, address and telephone number. The NTS must also be published in a local newspaper and posted on the property.

? Trustee?s Sale ? After the NTS has been recorded and the requisite waiting period, a public auction of the property can be held. At the auction, the property may be sold to a third party bidder or it may revert back to the Lender for the outstanding balance of principal, interest, late fees, legal expenses, etc. In order to qualify for bidding on the property, a bidder must present cashier’s checks for an amount equal to or greater than the Lender?s opening bid. Each bidder will be qualified by the auctioneer before bidding can begin and the full payment is due at the time of the sale.

? Disbursement of Funds ? Once the auction is completed and if the property sells to a third party bidder, all funds owed to the Lender will be forwarded. If the property reverts to the Lender, a Trustee’s Deed Upon Sale will be issued in favor of the Lender who then has ownership of the property.

Lenders may not seek Deficiency Judgments in the Non-Judicial Foreclosure process and the Borrower has no rights of redemption.

If you become involved in a foreclosure or know someone that has, it is important to not delay dealing with it right away because options may become more limited as time passes.

DISCLAIMER:

Although knowledgeable about the foreclosure process, the author is not an attorney and provides this general information only to help readers better understand how it works and how to safely cope with their own legal needs. However, legal information is not the same as legal advice. The application of law varies with every individual’s specific circumstances. Although great lengths have been expended to make sure this information is accurate and useful, it is strongly recommend that you consult a lawyer if you want professional assurance that this information, and your interpretation of it, is appropriate to your particular situation.

For more information, visit www.ocforeclosurehelp.com or call (949) 963-9021 for 24-hour recorded information.

Gerald G. Justice is CEO of JP Investment Holdings LLC, with offices in San Clemente, California and Las Vegas, Nevada. The firm primarily invests in residential real property with a particular emphasis on financial distress situations. For more information, visit our website or call (949) 963-9021.

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Dennis Evans

With FORECLOSURES at a all time high many are making a dangerous assumption that now is the time to invest but with some hard work and research everyone will learn that the are some locations or areas that are more attractive than others. As a matter of fact there are some regions that are not as attractive for investment because of several factors that are holding down the development opportunities. Careful studies of the local business strength will determine if homes foreclosures are even ready for the market. For instance, factories are also closing at an alarmingly high rate. Although this provides some available foreclosures at affordable rates however the amount of regional income must be able to support the new hopeful home owners. In short if there are no or little jobs in a city it is hard to expect to sell a house there.

What you need to do is check the job market in the area you are targeting. Then determine job availability and an outlook for the local businesses. What for cities that have numerous factory closings as a bad sign of any possible home purchase at any price. Chances are you may have to sit on that foreclosed home for some time till situations change.

In my home town this situation is exactly what is happening. Several bankrupt factories fighting to survive and uneasy job security for local residence have created enormously all time high house markets with little turn over. The first impression of great bargains is easy to over shadow the pending decline in some populations of some smaller cities. The result you are left holding a property you can not turn around and profit off in a timely manner.

This is just one area of foreclosure purchasing that you need to do some serious studding before you do and investing. I like to compare the following with the principles of where to look for foreclosure investments. Just remember it is easy to sell a boat near water but the desert is a hard sell for any boat of any size regardless of the price. Enjoy your searching for foreclosure!

Dennis Evans has turned small investments in hugh profits with careful research in foreclosed properties. Visit my website for lists of foreclosures, home and business. Find useful tips and guides to numerous websites not easily found anywhere else at http://guidetoforeclosure.com/.

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