| If you are like I was, you will be asking, 'What is a | | | | good working relationship with a bank or real estate |
| foreclosed property?' | | | | company you can often obtain one of these |
| And that is no shame, as we have been conditioned to | | | | properties at less that current market value. |
| believe that it is either too risky or complicated. | | | | The thing you must keep in mind, as with any |
| Well lets rip back the veil of confusion and commence | | | | investment, to be successful you must be solving |
| our journey on real estate investing! So first it is about | | | | someone else's problem. Banks typically are not |
| real estate and can be utilised as a real estate | | | | property gurus and just wish to offload a bad debt as |
| investing tool, but first....... | | | | quickly as possible. And are quite appreciative of your |
| A foreclosed property is when a poor soul can no | | | | assistance. |
| longer meet the loan repayments on the principal or | | | | Property foreclosure is a last resort effort by the |
| interest of the housing loan. Most lenders are quite | | | | banks (and indeed the owner). If you are aware of a |
| understanding in this situation but ultimately they have a | | | | persons personal plight prior to it getting to the |
| responsibility to shareholders and must 'foreclose' on | | | | foreclosure stage then you can also be of assistance |
| the situation if it can not be resolved. This means the | | | | by offering to be an intermediary using a strategy |
| lender (i.e the bank, usually) takes over the property | | | | known as property options. Which once again allows |
| with the intention of liquidating (i.e sell) the situation as | | | | you to solve someone else's problem, have them |
| quickly as possible, usually at a discounted price. | | | | happy and get paid for it. This is known as a win win |
| There that was not so painful was it! | | | | situation and is the only way to be successful in |
| As you can appreciate the above situation provides | | | | business. |
| opportunity to the real estate investor. If you have a | | | | |