Foreclosures...

[_Charles_]

I hear several of you mention 'Foreclosure' sales. How many of you have actually been to a foreclosure sale? I dropped in on one on friday, and I was a little surprised. You need to have 5% down on the spot and the balance is due by 12 noon the following business day. This pretty much means you need to have the cash available already....

Thoughts
Charles

[Amortized]

You need to have 5% down on the spot and the balance is due by 12 noon the following business day. This pretty much means you need to have the cash available already....

Thoughts
Charles

Or much time to arrange a halfway thorough home inspection, and believe me, on a foreclosure you'll want to go over that home with a fine tooth comb Heard plenty of foreclosure stories with new owners finding "presents" down the road.

[Dunecune442]

the key is to find the lies pendes (spelling?) and buy before they go to sale.
This way you can find out exactly what is owed by the homeowner and make an arrangement to buy the property.

You do have to have cash. You can secure a loan and have a courier drop the check off. Most investors have cash or check however.

[_Charles_]

the key is to find the lies pendes (spelling?) and buy before they go to sale.
This way you can find out exactly what is owed by the homeowner and make an arrangement to buy the property.

You do have to have cash. You can secure a loan and have a courier drop the check off. Most investors have cash or check however.

Lis pendens? Did you know several of the houses that were auctioned hit 'Lis Pendens' back in 2001, although some were 2005. 4 year stretch is a long one.

Charles

[XtremeVision]

most investors buying forclosures come in and write a check...they have the liquid avail to do that...thats what it takes...but you can find people in distress but it takes a lot of time and looking around to find houses that are worth buying....its not as easy as everyone on here seems to think...

[number_2]

explain lis pendens?

[_Charles_]

lis pendens
(lease pen-dense) n. Latin for "a suit pending," a written notice that a lawsuit has been filed which concerns the title to real property or some interest in that real property. The lis pendens (or notice of pending action) is filed with the clerk of the court, certified that it has been filed, and then recorded with the County Recorder. This gives notice to the defendant who owns real estate that there is a claim on the property, and the recording informs the general public (and particularly anyone interested in buying or financing the property) that there is this potential claim against it. The lis pendens must include a legal description of the real property, and the lawsuit must involve the property. Otherwise, if there is a petition to remove the lis pendens from real property not involved in the lawsuit, the plaintiff who originally recorded a false lis pendens will be subject to payment of attorney's fees as a penalty. Example: Joe Plumbob provides work and materials to Smith's home, sues to enforce a mechanic's lien, but records a lis pendens describing three other properties owned by Smith; Plumbob can be penalized by court order.

[number_2]

ohhhkay, thanks.

[Vito_Corleone]

Many people glance over books and think "foreclosures are the way to do get rich!", as you've shown, they're wrong.

[Dunecune442]

Actually you are wrong. Foreclosures are an EXCELLENT way to make lots of money as long as you have a decent amount of liquid cash on hand. They are not for the novice to deal with, rather they are more of an intermediate or advanced way to go for investment purposes.

Hundreds of lis pendens are filed. Getting to the homeowner is often more of a problem then anything. Usually, if plagued by many investors willing to take the debt and the property on the spot they will refuse to see anyone. For example, a homeowner in a condo near channelside told security he would not be seeing ANYONE because he lived in a desirable area (right on the river in downtown).

Im really surprised you all are so skeptical. Im even more surprised because none of you have actually even made such an investment or been an intricate part in it. To right off foreclosures off the bat without having any first hand knowledge is unfounded. Im not sure where you are making your assumptions.

BTW vito in no way were foreclosures disproven in this thread. All rice rocket did was give a definition of lis pendens.

If you are interested in foreclosures I recommend you do a few things.

First, go to real estate seminars/school. Then get your license. Just because you HAVE real estate license doesnt meen you cant have a job on the side for $, because when you first start your not going to make much. Stay active in the industry!!! I cant stress this enough. Know the market, the hotspots, areas that are going to boom anything. Increase your contacts and finally start investing on your own. As you become seasoned and wealthier in this field you can start buying, selling, renting your own properties. The problem with a typical property is that they are hard to find at a reasonable price because the owner really has no obligation to move, so they will not haggle very much. With a lis pendes or foreclosure case the seller (bank or lien holder) the seller IS obligated to sell. I have personally seen houses that are 1500 sq ft in nice neighberhoods go for less than 50k. Now even if the property has another 50k in liens it doesnt make much difference if the homes surrounding are valued at 200k and above.

Now something you may not all know. Before every foreclosure sail their is a man or a woman walking around with a bunch of booklets. These booklets have every home or property listed for sale in the foreclosure court for the next month/week. By researching those properties (and I wont say exactly how because Im not extremely well versed myself, and Id rather not lead you on) you can figure out EXACTLY how much is owed. Attorneys representing the seller are usually on hand and if you are friendly/well connected they will tell you what the bank is willing to let the property go for. For example, a friend of my fathers who is very big in south tampa asked the banks attorney what the bank wanted. The attorney responded 22,435.58 (around that, even gave exact change). My fathers friend bid EXACTLY that amount, uncontested and walked out with a steel warehouse that was less than 5 years old on an acre lot.

I could go on and on, and give you more tips but apparently foreclosures are unprofitable and not safe... suit yourselves. I plan on purchasing my own home through a foreclosure bank after I have enough capital and knowledge because I know the profits that can be had and will be attained through diligence, knowledge and hard work.

[_Charles_]

I never said that Foreclosures were not good deals, just that if you don't have the funds available within 24 hrs, than forget it. This is a big deal!

And that part about asking the plaintiff how much, basically, it's the Judgement (or default value). The plaintiff (usually bank) will usually bid to the judgement amount in order to secure thier intrest in the property. If nobody bids higher than the plaintiff, then it becomes 'bank owned' property, and the bank sells it through a realtor. If somebody bids higher, then the property sells. If the bank does NOT bid towards the property, than there probably a reason why (beware). And yes, you need to know all the leins on the property, or you may find yourself in deep shit.

Charles

[Dunecune442]

rice rocket I was referring to Vitos statement, not yours.

Like I stated earlier, its not for beginners with little to no knowledge of real estate ventures.