27 March 07 - 16:47Making Money with Real Estate: Pre Foreclosure Investing

Interested in making money with real estate? Consider pre foreclosure investing ― a great way to begin making money with real estate, without the usual financial scrutiny. But before you start in the world of pre foreclosure investing, you should understand a little about the inner and outer process the owner of a pre foreclosure property may be going through.

You have about three weeks (the usual pre foreclosure period before the foreclosure auction) to contact the owner of a pre foreclosure property, as well as complete the paperwork and title search, obtain funding, etc. Navigate the pre foreclosure period well, though, and you’ll be on your way to making money with real estate.

It’s important to consider that most owners of pre foreclosure property are highly stressed and may be mad at the world for the situation they’re in. At first, they may not be friendly or open to your offer to buy their pre foreclosure property. Though your goal is making money with real estate, their goal, though they may not know how to achieve it, is making it all go away.

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09 March 07 - 18:02Preforeclosure –5 Other Alternatives Homeowners May Be Considering

Buying preforeclosures can be a highly profitable real estate investing opportunity. If you invest in preforeclosure property, however, (or if you plan to), you need to understand the other options that a homeowner who is currently in preforeclosure or who is facing foreclosure may be considering.

Forbearance Agreement – A homeowner who is in default, but not yet in preforeclosure, may be allowed to make low mortgage payments or no payments at all for a period of time (commonly 3-6 months). After that period of time, however, the homeowner is usually required to make payments that are higher than the original monthly mortgage payment until the loan is brought up-to-date.

Special Forbearance – If the homeowner has an FHA loan, he may be eligible to postpone making mortgage payments for a minimum of four months to avoid lapsing into preforeclosure. There is no limit to the number of months the homeowner may postpone payments, but payment delinquency is not permitted to exceed the equivalent of 12 monthly PITI installments. (more)

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