mortagesandforeclosures

by Beverly Jones

The traditional real estate market has really taken a hammering in recent times. There is a foreclosure crisis, more homes are being repossessed by the day, No matter what plans are being put in place by Federal and State Government, it will be too late for many more home owners to save their property, their credit, and in many instances, the last shreds of their dignity. If you want to know how to buy a foreclosure, keep reading.

The short sale is not legislated, but it is an acceptable business practice. What the home owner does, is ask for permission from his lender to sell the property at less than the amount owed on the mortgage. Hence the name short-sale!

There are three phases at which foreclosure offers the investor an opportunity to buy a property. The kindest phase and also the phase in which and investor is able to help a home owner who is in trouble. The Pre-foreclosure! At this point in time the home owner has received a notice of default, he is getting worried about how he is going to keep a roof over the head of his family. He is often looking at ways out of a mortgage he can't afford as well as avoiding the foreclosure process.

If one lender in New York alone has 50 foreclosures going through every month, and they are taking as long as this to be completed and costing this much money, they are losing a great deal of money on their investments. A bank is in the lending business not the real estate business and their assets are loans, not property.

Banks have to send out a notice of default, before they can sell a property in a foreclosure proceeding, this is public information. Interested investors can access this information easily through local newspapers, the court house or real estate and other listing services.

Once they have identified a few short sale properties they are interested in, they can short list them. Conduct all the necessary investigations such as a title or deed search and determine if there is any profit in the deal. The investor ahs to create a win-win situation for everyone involved in the deal, this is the home owner, the lender and obviously himself.

The investor, also needs to take care, as there could be so many liens over a mortgage that it will not be worthwhile for them to pursue a short-sale purchase. This information is easily found out, either by also using the services of an attorney, or a short-sale realtor, or by finding out all the information they need through a deed search. There are plenty of ways of skinning this particular cat.

The short (excuse the pun) and long of this process, is that a win-win situation needs to be created for the buyer, the lender and the seller. If the seller is not foreclosed upon, they don't save their credit record in its entirety, and generally manage to salvage something of a record. The lender, get just about as much as they are ever going to get out of the deal, and they look at this carefully, and the buyer, he generally gets a bargain.

About the Author:

In this current economy it's a better time than ever to buy foreclosures. If the only thing that's stopped you in the past was not knowing how to buy foreclosures then you need to visit my blog that will teach you how to buy real estate foreclosure.

Get all the information and photos:: http://mortgagewide.info/information-on-how-to-buy-a-foreclosure/