If someone is about to lose their home to foreclosure, then you can guarantee they’re feeling stressed. They’re probably being bombarded by calls and letters from creditors, and for many people it all becomes too much to handle. They close their eyes and hope it will all just go away.

Reality is, that it won’t, and as an investor interested in buying foreclosures, the hardest part can be convincing the homeowner that they really are going to lose their house unless they do something about it. It can also be difficult to convince them that you really are trying to help them, even though you are helping yourself make a profit at the same time.

When you’re dealing with foreclosures, time is of the utmost importance. You need to have enough time to bail out the homeowner and take over the property before it’s too late. That’s why it can be a good idea to subscribe to a foreclosure listing service - you get access to listings at the earliest possible time, and don’t have to use your valuable time looking for potential foreclosure properties from other sources.

Many people facing foreclosure have spoken to an attorney, and are convinced that bankruptcy is their only option. In most cases this isn’t true, but attorneys tend to stick to what they’re familiar with, which is bankruptcy, rather than mentioning other possibilities such as:

- Deed in lieu
- Straight sale
- Foreclosure presale
- Compromise sale
- Short payoff
- Workouts
- Assignment

There are still more options than these, which shows that bankruptcy definitely isn’t the only choice for the homeowner. When you’re dealing with a homeowner in foreclosure, make it clear that you’re offering an alternative to bankruptcy. Find out whether they really understand what bankruptcy will do to their credit history and how it will affect their future.

If you’re serious about buying foreclosure properties, then you need to become familiar with everything that’s required in the process, and check everything for every property you consider. These items include:

- Loan and mortgage documents
- Loan amount, monthly payment, and interest rate
- Any outstanding taxes
- Existing insurance policies
- Any other liens or judgments

Make sure you have enough information to complete all the necessary tasks before the foreclosure occurs. If there’s not enough time, don’t even bother starting. Having said that, learn as much as you can about ways to delay foreclosure, and help the homeowner to implement them all. If may just give you enough time to take over the property before the foreclosure auction.

Above all, focus on creating a solution where everybody wins. It’s never an easy time for the homeowner, so be prepared for plenty of anger, frustration and resentment - some of which may be directed at you. Walk away if it’s obvious the person doesn’t want to work with you. Find someone who is interested in finding a solution, show empathy for their situation, put together a strategy to get the best possible result for them, and before long you’ll find yourself with a good portfolio of investment properties.

Real Estate Road Kill Usa .com

Newest figures show that buyer’s are coming back into the real estate market drawn by huge price reductions.  2 years ago there was a critical shortage of affordable housing and now it’s turned into a stellar buyer’s market.  It’s also estimated that as much as 40% of the homes sold are short sales, meaning the house is being sold for less than the amount of the seller’s mortgage balance.

When successful, a short sale transaction is a big WIN-WIN-WIN situation.  Sellers are getting out from under their unmanageable mortgage obligation, banks are unloading inventory and buyers are getting the deals of a lifetime.  Realtors® also benefit since most lenders will not consider short sale offers on For Sale By Owner properties.  Realtors® experienced in “negative equity” transactions are in high demand.

The key to being able to take advantage of the current market crises is patience.  When an offer is made on a property for less than what is owed on the mortgage the lender decides whether they are better off accepting the “short” offer or foreclosing on the property.  Foreclosures are typically a losing proposition for both sides and the offers from qualified buyers are welcome.  Unfortunately, lenders are unprepared to handle the volume of preforeclosure situations and the wait for a decision on a short sale offer is currently running from 1 to 4 months.

While an incredible opportunity for buyers, this type of transaction can be very frustrating for Realtors® and short sale negotiators.  Mark Greene, owner/founder of Short Sale Operations, LLC in Jupiter FL, explains, “since the buyer’s “due diligence clock” doesn’t start ticking until the bank accepts an offer many deals don’t come to fruition even after months of fierce negotiating.  The prospective buyer may have changed their plans during the long wait.

At this point the deep-discount price has been accepted by the lender and the contract must close in 30-45 days.  The good news is that the lender doesn’t really care who the buyer is once the transaction reaches this stage.  It is these deals (approved short sale offers with no immediate buyers present) that offer the precious low hanging fruit for opportunistic buyers.  A new website, www.RealEstateRoadKillUSA.com is receiving national attention for bringing this inventory of approved offers to the public. 

Realtors and buyers are flocking to it like bees to honey (or vultures to carrion).  These are the absolute hottest deals in town and all the work has already been done to prepare them for closing.  Simply, it makes sense to check this list as the absolute first step when shopping for residential real estate. 
         
Whether you find yourself on the distressed or the opportunistic side of this market be sure you are working with real estate and mortgage specialists who can present all your options.  Buying and selling in “short sales” situations requires specific knowledge of the procedure to be successful.  Consultations are always free at Elite Lending, 561-575-5626 and via the RealEstateRoadKill Regional Licensees that will be operating shortly. We are all proud to be serving our community in these trying times.