The ‘truth’ about real estate pre-foreclosure earnings
If you want to make BIG money in real estate, you need to know the ‘truth’ about past foreclosures; Not only do you need to know exactly what pre-foreclosures are, you also need to learn how and when to invest in pre-foreclosures.
As an investor, you will need to understand and be up-to-date with the foreclosure laws of the state where you live.
A foreclosure occurs when the homeowner (borrower) is unable to pay their lender their monthly mortgage payments; the lender will notify the borrower and let them know to find the money within a specific time period (varies by state), otherwise the lender will be forced to repossess the property and begin foreclosure proceedings.
The borrower must leave his domicile; more than that, he won’t be able to keep his credit for other purchases.
The lender will try to sell the house at public auction for less than the house’s actual market value simply because they want their money back.
Sometimes the house sells quickly, but often the lender cannot sell the house and it will remain vacant.
I hope you get a complete picture of foreclosures. Now, you need to understand what a pre-foreclosure is.
A pre-foreclosure occurs before the foreclosure proceeding takes place. In a pre-foreclosure, you contact the borrower yourself and let them know that you have a serious investor who is interested in buying the borrower’s home.
The borrower has the advantage of receiving money from the investor so he will not be forced to leave his home and his credit will not be ruined.
The lender receives the rest of his money (the borrower’s mortgage) from his investor. Once you resell the house, both you and your investor will walk away with a BIG profit.
In a pre-foreclosure, ALL parties involved benefit: the lender, the borrower, you, and the investor. It is a win-win situation.
Most real estate agents want to keep the above information SECRET because it is “stealing” their business.
One of the ‘BEST’ ways to make a profit on pre-foreclosures FAST is by searching the internet for pre-foreclosure listings.
Sign up for a service that sends you pre-foreclosure listings (lis pendens) You will receive official notices when a NEW foreclosure process is about to begin. You will also receive information about the house, the names of the lender and the owner (borrower).
Be sure to CREATE a list of homes that interest you and begin contacting each owner (borrower) by phone or email. It’s faster than doing it in person.
Talk to each person seriously and warmly, pay attention to their desires and needs. Let them know that a pre-foreclosure really is your ‘BEST’ option and provide your SUPPORT and help along the way until you successfully make the deal and beyond.
If they are happy, most will tell others about your HELP (eg friends, partners, contacts, etc.), thus generating more loyal LEADS for you for future business.
Remember: be persuasive, friendly and helpful to ALL serious people in the real estate business before foreclosures and you will succeed no matter what.
– Copyright C Mike Upshaw
