Buying a foreclosure can be a lucrative investment, locating a
foreclosure before anyone else or a property in pre-foreclosure stage
allows you to be the only person negotiating with a motivated seller."
The recent real estate boom inspired mortgage financers, to increase the
number of sub prime mortgages given to people considered high risk has
now has fueled the current mortgage meltdown.
As always, an opportunity presents itself. Buying a property in pre-foreclosure involves approaching the borrower or owner and offering to buy the property outright which means at a discount. The added value this system is, the owner can walk away with something to show for any equity in the property and avoid a bad mark on his or her credit history.
This pre-foreclosure process also gives the buyer the time to research the title and condition of the property. Deals of this nature typically realize discounts of 20 to 40 percent below market value. In today's heated sub prime market, those numbers are very realistic.With the foreclosure rate running at a record-setting pace it is understandable why many homeowners are willing to do anything or sign anything to keep from losing their homes.
Clearly today's market environment is attractive to the pre-foreclosure investor. According to the Mortgage Bankers Association, consumers with normally good credit are also defaulting on their mortgages. More than 5 percent of loans across the country were delinquent, up from last year. It should be noted that delinquent loans do not include homes in foreclosure however they maybe in the pre-foreclosure stage. Equally noteworthy, trillions of dollars in mortgages will reset by year's end so homeowners who were able to pay their mortgage bills until now, may be at risk of missing house payments as well.
If you are in the pre-foreclosure market, with some additional effort, you can find these homes and properties. As you become acquainted with these contacts, you can tell them the type of home you are looking for and the area. If you check regularly, you may obtain information on homes before they are added to public databases."
Paradise Lost and Found
While Hawaii's housing market is tightening like the rest of the country, it's not experiencing anywhere near the level of foreclosures seen in other states nor the level seen in Hawai'i in the mid-1990s. In the mid-1990s, Hawai'i foreclosures ranged between 4,000 and 5,000 a year.Today, Hawaii has the 10th-lowest foreclosure rate in the nation.
As always, an opportunity presents itself. Buying a property in pre-foreclosure involves approaching the borrower or owner and offering to buy the property outright which means at a discount. The added value this system is, the owner can walk away with something to show for any equity in the property and avoid a bad mark on his or her credit history.
This pre-foreclosure process also gives the buyer the time to research the title and condition of the property. Deals of this nature typically realize discounts of 20 to 40 percent below market value. In today's heated sub prime market, those numbers are very realistic.With the foreclosure rate running at a record-setting pace it is understandable why many homeowners are willing to do anything or sign anything to keep from losing their homes.
Clearly today's market environment is attractive to the pre-foreclosure investor. According to the Mortgage Bankers Association, consumers with normally good credit are also defaulting on their mortgages. More than 5 percent of loans across the country were delinquent, up from last year. It should be noted that delinquent loans do not include homes in foreclosure however they maybe in the pre-foreclosure stage. Equally noteworthy, trillions of dollars in mortgages will reset by year's end so homeowners who were able to pay their mortgage bills until now, may be at risk of missing house payments as well.
If you are in the pre-foreclosure market, with some additional effort, you can find these homes and properties. As you become acquainted with these contacts, you can tell them the type of home you are looking for and the area. If you check regularly, you may obtain information on homes before they are added to public databases."
Paradise Lost and Found
While Hawaii's housing market is tightening like the rest of the country, it's not experiencing anywhere near the level of foreclosures seen in other states nor the level seen in Hawai'i in the mid-1990s. In the mid-1990s, Hawai'i foreclosures ranged between 4,000 and 5,000 a year.Today, Hawaii has the 10th-lowest foreclosure rate in the nation.
P.S. If you haven't signed up for my Free Short Sale Course yet, then you are really missing out, go here: http://www.freeshortsalecourse.com/
Jeff Kaller, visionary, educator and real estate developer has the pioneered the most preeminent pre-foreclosure system in United States. Specializing in a well kept industry niche, Jeff teaches the real estate secrets of purchasing pre-foreclosure properties while executing real estate theory to actual practice. A record of $7 million dollars in properties and a dedicated following of over 9,000 students in less than four years stands testament to his winning strategies.
Jeff Kaller, visionary, educator and real estate developer has the pioneered the most preeminent pre-foreclosure system in United States. Specializing in a well kept industry niche, Jeff teaches the real estate secrets of purchasing pre-foreclosure properties while executing real estate theory to actual practice. A record of $7 million dollars in properties and a dedicated following of over 9,000 students in less than four years stands testament to his winning strategies.
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