| Many new investors make the wise decision to get | | | | tax postforeclosures. This means, wait until after the |
| into the foreclosures investing niche, but then go about | | | | tax sale, when properties have already been "sold", |
| buying those foreclosures the wrong way. | | | | and approach the owners during the redemption |
| Preforeclosures, or postforeclosures? Which is the | | | | period, usually one year after the tax sale. By this time, |
| best way to invest? Have you even heard of | | | | even the most stubborn owner is ready to admit that |
| postforeclosures? | | | | he will lose his house if he doesn't sell. Unfortunately for |
| When you look to invest in preforeclosures - that is, | | | | him, by this time, almost no one is calling him anymore - |
| you contact owners that are in foreclosure to try to | | | | that's where you come in. |
| buy their property before it is sold at auction - you run | | | | Another way to make some serious money from |
| into a lot of problems. With mortgage preforeclosures, | | | | postforeclosures is by finding the overages, and |
| there can be a ton of legal issues, not to mention the | | | | reconnecting them with their owners. When properties |
| huge amount of money usually owed in missed | | | | sell for more than what is owed, much of the time that |
| mortgage payments. Also, it can be extremely difficult | | | | extra money is held for the previous owner to come |
| even getting these owners on the phone. Most are | | | | and collect. Most of the time, however, these owners |
| dodging creditors and trying their best to avoid anyone | | | | don't know about it, and since they've usually moved |
| calling about the predicament they're in. Mortgage | | | | from the property, they don't get any notices about it |
| foreclosure investing is a really tough racket all around. | | | | from the city. Then, eventually, the government gets to |
| Tax preforeclosures are better, but not by much. Most | | | | keep the money. |
| owners in foreclosure that haven't actually had their | | | | If you can find these owners and their funds and |
| properties foreclosed on yet are holding on to the | | | | reunite the two, you can make some serious money. |
| dream that they're going to be able to come up with | | | | Professionals in the field charge 30-50% standard as a |
| the cash to bail themselves out. Again, you may have | | | | finder's fee, and with the number of foreclosures |
| a very hard time getting these owners on the phone, | | | | currently occurring, there is a lot of space for new |
| and an even harder time working out a deal in your | | | | money finders in the business. If you put in a decent |
| favor. | | | | effort, earning a five-figure monthly income is a virtual |
| The best way to get cheap properties is to invest in | | | | guarantee. |