OfflineReaping repo rewards
Want to brave the wild world of foreclosures? Follow this advice.
By David Whitford, editor at large
Last Updated: December 24, 2008: 10:24 AM ET
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Oracle's edge
4 tips on buying foreclosures
NEW YORK (Fortune) -- As home prices continue to skid and foreclosure rates soar (up a further 38% since the third quarter of 2007), some investors are on the lookout for outrageous bargains. Think you're ready to jump in?
Consider paying cash
Some transactions require that you close within days. That's not enough time to get a bank loan. A so-called hard-money loan is an option, but you'll pay 15% plus points, and you can't count on refinancing right away.
Perform due diligence
Foreclosures are typically sold as is, where is, but you can inspect the property before you bid. Even after you put down a deposit, you can change your mind and get your money back. Private auctions typically offer a bigger window for deliberation than public auctions on the courthouse steps.
Hire a licensed appraiser
You don't care how much the lender has discounted the note; all that matters is how much the house is really worth. Only an appraiser can tell you that. Could cost you a few hundred dollars to find out. Could save you a few hundred thousand dollars once you know.
Buy short
Instead of foreclosure, Scottsdale real estate advisor Robin Reed often advises what's known as a short sale - a negotiated transaction involving you, the bank, and the homeowner prior to formal foreclosure. You'll have more time to arrange financing - and since the lender has fewer costs to recover, you may get a better price. Check public NOD (notice of default) listings for prospects.
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
How would I find the Public NOD to find short sale prospects?
They are published in legal newspapers. Also, there are services that can track them for you for a fee.
Look in your local newspapers, they post homes in forclosure and most times what is owed on the property, legal address, property address etc. That's where I find them...Anyone else?
Dawn
Life's a Dance you learn as you go...GET HAPPY FEET!
"Most of the important things in the world have been accomplished by people who have kept on trying when there seemed no hope at all." ~Dale Carnegie
A so-called hard-money loan is an option, but you'll pay 15% plus points, and you can't count on refinancing right away.
This is really steep hard money.. You really should be able to get a better deal than this. Points will be steep but the interest rate should be lower.
Also, remember that this is short term financing anyway so to some extent the interest rate does not matter.
I'll check my local newspapers is that diff than a legal newspaper?
Can anyone recommend a service.
Can anyone recommend a service.
Legal papers are different than local papers. Call your county. They can tell you what papers they publish in.