condos

Condo Or House? Exploring The Differences In Ownership

December 18, 2008 By Mike Taylor Leave a Comment

Greg Gagnon asked:

More than ever before, condo ownership represents an appealing alternative to traditional home ownership for all types of residents. Though condos have conventionally been the choice of singles and families without dependent children, more traditional families have begun experiencing the unique benefits of condo ownership. However, condos are certainly not for everyone. While condo ownership may provide access to certain amenities and limit time spent on upkeep, there can be certain restrictions – few of which are experienced by owners of single family homes. This article will consider the primary differences between condo and traditional home ownership. If you consider the facts in relation to your family’s goals, you may come to a better understanding of the best type of property for your family.

Two of the most important factors in determining what type of home is right for your family are location and lifestyle. If your family is looking to move to an urban environment where single family homes are scarce, a condo could be a good choice. In such markets, condos are always in high demand and appreciation often matches the best single family homes.

Additionally, if you live a busy life and can live without a large yard, a condo could help you live simply and happily. While most families with young children prefer single family homes for the added space, condos often provide amenities such as swimming pools, tennis courts and large open areas to help families relax and play.

However, there is far more to consider than location and lifestyle when deciding which type of property is best for your family. Nearly all of the differences between houses and condos stem from the different types of ownership. In the simplest terms, owners of single family homes are entitled to exclusive ownership, while most condo owners are subject to certain forms of shared ownership.

In regards to single family homes, exclusive ownership allows home owners to alter their home and surrounding property in nearly any way. While building codes may prevent certain home additions and other large-scale renovations, owners of single family homes can adapt their homes to meet their unique goals.

The owner of a condo is not always allowed to make such radical changes to their property. When purchasing a condo, owners are subject to the rules and regulations of the condo association or board. Typically composed of fellow residents, this governing body collects dues from condo owners to conduct ongoing maintenance of shared areas and perform any unexpected repairs. As part of the agreement with the condo board, new owners will be informed of what types of changes can be made to the interior and exterior of their property. In most cases, condo owners possess the same type of exclusive ownership inside their condos as homeowners, yet are limited in exterior alterations to maintain the uniformity of the community.

If you are thinking about purchasing a condo, it is important to read the Covenants, Conditions and Restrictions (CC&Rs) before making a commitment. These documents include all the rules condo owners must follow and can vary widely between complexes. If you have indoor pets or other specific needs, make sure these are addressed in the CC&Rs to prevent any unwanted surprises. If you don’t understand any part of the CC&Rs when purchasing a condo, you can try to gain clarification from the director of the condo association.

While the concept of shared ownership might seem limiting to potential owners, there are certainly plenty of benefits. For instance, the owner of a single family home is solely responsible for any problems with the properties, incurring all costs of needed repairs. However, the dues paid by condo owner cover many repair costs – both inside and outside the home. Furthermore, condo ownership can also provide access to amenities – such as pools, spas and recreation equipment – outside the budget of a home owner.

Regardless of location, either a single family home or a condo can be the right fit for the right family. To make the most informed decision, all prospective homebuyers should reflect on their own lifestyles and priorities and how they relate to the different types of property ownership. While there may be many differences between house and condo ownership, the goal is always the same – finding the best home for your family.

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Filed Under: condos Tagged With: condos, Houses, Singles, Tennis Courts, Types Of Ownership

Dallas Condo Insurance: What Is It And Do You Need It?

December 15, 2008 By Mike Taylor Leave a Comment

Amy Thomas asked:

Are you in the process of moving to the Dallas area? If you are, have you decided that you would like to buy a Dallas condo? If so, you are definitely not alone. Each year, a large number of individuals who move to the Dallas area consider buying their own condos. If you have reaffirmed your decision to buy a Dallas condo, you may be working out all of the “kinks,” or be in the process of getting all of your arrangements in order. If that is what you are doing, have you started to examine insurance?

When it comes to owning a Dallas condo, there are a large number of individuals who do not know whether or not they need to buy a Dallas condo insurance policy. If you are in the mist of purchasing a condo, it is definitely something that you will want to examine. In fact, you might not only find that having insurance coverage for your Dallas condo is recommended, but you may also find that it is required. Perhaps, the best way to determine whether or not condo insurance is required or is just optional is to contact your local Dallas condo association for more information.

Although there is a good chance that you will be required to have condo insurance for your Dallas condo, you might not actually be required to do so. Even if you aren’t legally forced to have condo insurance coverage, it is still advised that you do. In a way, condo insurance can be compared to renter’s insurance, although you are actually the owner of your condo not a renter. For instance, should your condo complex suffer wind damage from a storm and you have belongings that were damaged because of that wind, it is your responsibility to replace or repair your belongings. Unfortunately, there are too many condo owners who believe that their belongings would be taken care of or paid for by the condo association or the owner in charge of running the Dallas condo complex. This is not how it works though.

If you are interested in obtaining condo insurance for your Dallas condo, you will want to speak with an established insurance agent. These insurance agents can often be found locally or online, with a standard internet search. For the best quality of service, you are advised to approach the insurance company that handles your car insurance, should you have an insured vehicle. There are a large number of insurance companies, maybe just like yours, who offer coverage for a wide variety of different items, including condos, homes, and vehicles. No matter who you choose to seek condo insurance from, it is important that you do. As previously mentioned, without condo insurance for your Dallas condo, it would then be your responsibility to pay for all repairs and replacements, without any help from an insurance company.

In addition to purchasing your own Dallas condo insurance policy, you may also be required to contribute to another insurance policy. Most condo complex associations require that insurance coverage be carried for common grounds. These common grounds, such as picnic areas, swimming pools, and so on, are the grounds which you and the other condo owners own together. Depending on which Dallas condo complex association you have to deal with, you may be required to pay this insurance on a yearly basis or in small increments each month. If you have yet to officially buy a Dallas condo, this is an important question that you may want to ask ahead of time, before making your purchase offer.

Although having and knowing the important of Dallas condo insurance is important, condo insurance isn’t the only thing that you will need to examine and prepare for, before buying a Dallas condo. For more information on buying a condo in Dallas, you are advised to examine Condodomain.com.

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Filed Under: condos Tagged With: Belongings, condo association, Condo Owners, moving, Running

Maui Vacation Condos: Your Renting Options

December 15, 2008 By Mike Taylor Leave a Comment

Mark Fazoli asked:

Are you preparing to make your Maui vacation reservations? If so, have you decide where you would like to stay yet, in the form of overnight accommodations? If you have yet to decide, you may want to look into Maui vacation condos. Maui vacation condos are the perfect place to stay while vacationing in Maui. In fact, you will find that there are an unlimited number of benefits to renting a Maui vacation condo. One of those benefits is the options that you are given.

Before you can further examine the options that you are given, when booking a stay at a Maui vacation condo, it is important that you know exactly what they are. This is extremely important because, unfortunately, there are too many individuals who are misinformed when it comes to Maui vacation condos. Condos are another word that is used to describe a condominium. Condos, including Maui vacation condos, come in a number of different sizes shapes and styles. No matter their style be, such as a high-rise building, condos are living spaces that are housed within those buildings. In a way, these living spaces are like traditional apartments. It is not uncommon for most Maui vacation condos to come equipped with full bathrooms, kitchens, and much more.

Now that you know exactly what Maui vacation condos are, which are not to be confused with vacation homes, you can start to focus on the choices that are given to you. Perhaps, the most important choice is that of the condo itself. As previously mentioned Maui vacation condos come in a number of different sizes, shapes, and styles. In the Maui area, it is most common to find condos that are in high rise buildings. This is often due to the number of condos that a high-rise building can house. The size of individual condos also varies. A large number of Maui vacation condos are considered two room condos, but it is also possible to rent Maui vacation condos with additional living spaces.

In addition to the size of a Maui vacation condo, you are also given a choice with the location. Maui is one of Hawaii’s most well-known and popular islands. All across the island, you are able to find a fairly large selection of Maui vacation condos that are available for rent, often for a week, but sometimes even longer. Since Maui is an island that is known for its beautiful beaches, a large number of Maui condos are situated along the coast. These condos are often referred to as beachfront vacation condos. Although you may be prefer to enjoy Hawaii’s beaches, there is also a chance that you would like to be in a more centralized location. In addition to beachfront vacation condos, there are also a number of inland Maui vacation condos that are available to tourists just like you.

Aside from focusing on the reservations that you will be making, you also need to think about how you will be making those reservations. One of the most popular choices, when it comes to making Maui vacation condo reservations, is by using the internet, namely online travel websites. In addition to making your own Maui vacation condo reservations online, you can also use the assistance of a travel agent or book your reservations with a condo owner directly. Although each method of making your reservations is acceptable, you may want to think about using the method that saves you the most money, as well as the most time. Often, you will find that method to be an online travel website.

Regardless of which type of Maui vacation condo you choose to rent or how you go about making those reservations, it is advised that you make your reservations ahead of time. While there are always enough vacation condos to go around, making your reservations ahead of time will help to ensure that you get your first choice Maui vacation condo before someone else decides to reserve it.

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Filed Under: condos Tagged With: Maui Condos, Maui Vacation Condos, Options, Shapes, Traditional Apartments

What to Look for in Real Estate Foreclosures

December 11, 2008 By Mike Taylor Leave a Comment

Cheryline Lawson asked:

With the real estate market at present experiencing one of its worst years in history and foreclosures occurring almost daily in most states, there are still many persons interested in invested in real estate foreclosures.

This is so because real estate foreclosures can usually be bought at well below market prices making them very attractive to investors. If you are interested in investing in real estate foreclosures then you should approach it with some degree of caution and spend some time making sure you are investing in a property that is likely to earn you some money.

There are a few things you should watch for when looking about locating the right real estate foreclosure to invest in. You can start off by seeking out real estate foreclosures that are low cost. You can find these at foreclosure auctions since that is where most foreclosures are being sold. A good real estate agent should be able to give you information on where and when auctions are being held.

There are also a number of lending institutions that are reselling properties on the mainstream real estate market and at reduced prices. There are other places you should look for real estate foreclosure properties such as on the Internet, where you can find listings for hundreds of real estate foreclosures. You should also pay a visit to your local county clerk offices or look through the classifieds in your local newspaper. Another simple way is to watch out for foreclosure signs in and around your neighbourhood. You may just see a property that you like.

After you have gone through the different sources you should have found a number of properties that you are interested in. Make sure that you have physically seen the properties yourself so that you can determine whether or not they are worthwhile properties to invest in. Too many investors do not know the status of the property they are buying and then they find out that it needs a lot of repairs costing them tons of money.

Buying a property that is out of town is not a good idea if you don’t have someone to manage the property for you or provide information necessary to make that purchase. Before you purchase real estate foreclosures, be aware of the potential repair costs that are associated with the real estate in question, as this will affect what you will be willing to pay for it. If you decide to purchase a property that is in need of repairs, make sure it is one that needs minor repairs so as to keep your expenses down to a minimum.

Money is made in real estate foreclosures through the selling or renting of the property. For this reason your property must be appealing to prospective buyers and renters. Therefore you must look through the property to make sure it is in a condition that is acceptable. Another important thing to consider is whether it is in an area where buyers and renters will want to come to. Be sure you are satisfied with the property and its location because chances are if you are not, then the buyer or renter will not be either.

Filed Under: condos Tagged With: foreclosure properties, good real estate, investors, real estate agent, real estate foreclosure

A Guide to Going Bankrupt in Real Estate!

December 10, 2008 By Mike Taylor Leave a Comment

Escapeso Austin Real Estate asked:

First off, watch some late night infomercials on TV. And possibly order some real estate tapes from Carlton Sheets. This will provide you with a positive upbeat attitude and a sense of false confidence that is essential in order to go bankrupt. Believe that after listening to some tapes, you can compete with people that have done this 7 days a week for years.

Second. For your first investment, buy in a city you know little to nothing about and avoid using a buyers agent who does know the city. Go directly to the sellers agent. The best way to make a truly horrible decision is to avoid any outside advice. The best part of this is that avoiding a buyers agent usually doesn’t save you any money since the selling agent simply makes more when you deal with them directly.

Look for a discount or a distressed property over a good long term investment. Late night infomercials and Carlton Sheets talk a lot about this. Getting equity at the point of sale. One thing about distressed properties with desperate sellers is that they frequently are in crappy areas with low appreciation rates. Buying a property at under market rate in an area with low appreciation potential versus a property in a good area is the kind of short sighted thinking that will really help you reach the goal of bankruptcy and foreclosure.

When you talk to people including your realtor, try to spend time talking about all the crap you learned from your book or light night infomercial. The more you listen to other people, the more you might get different perspectives and the higher chance you might learn new things. This could really hurt your chances of going bankrupt so avoid listening to anyone. Remember you know everything even if you only got interested in real estate last week.

Be positive to the point of stupidity. Alot of investors I know always think about how their situation would be affected by a 10 or 20 percent drop in the market before making a purchase. You should avoid this kind of thinking. You need to be blinded by greed. You should only fantasize about how you are going to double your money.

When calculating your monthly cashflow, assume that you will have 100% occupancy all the time and no maintenance cost. While you are at assume that its going to rain money tomorrow.

Also, be stubborn when renting your properties. Decide upon a number say $900 a month and refuse to budge. Come up with some bizarre logic about how the property deserves $900 a month. Lose months of rent having the property sit vacant instead of going down $50 on the rent. Instead of responding to the market make statements like “Well the markets wrong then”.

As you move closer to foreclosure, don’t alter your spending habits. Don’t move into a smaller house or cut spending. Act like nothing is wrong.

Overextend, overextend, overextend. Are you approved to buy one house. Why not buy 5, heck why not 20. Instead of building up a portfolio of properties over time, gaining experience along the way, just buy alot of properties next Tuesday.

Alot of people are getting into the foreclosure game. Their is no reason you should be left behind. Throwing caution to the wind and filling your eyes with greed and you should find yourself walking down the golden path to foreclosure.

This is not a definitive guide to foreclosure. Alot of people end up in foreclosure due to many things unforeseen events like unpreventable family illness, divorce or job loss. This is simply a guide to what I call elective foreclosure.

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Filed Under: condos Tagged With: Appreciation Rates, Different Perspectives, Distressed Property, Sellers Agent, Upbeat Attitude

What To Consider When Buying A D.C. Condo

December 5, 2008 By Mike Taylor Leave a Comment

Alan Winters asked:

Are you looking to purchase a D.C. condo? If so, have you already started to examine the Washington D.C. condo market? If you have, do you have a few favorites; a few D.C. condos that you would like to purchase? If so, you are definitely not alone. When it comes to examining D.C. condos there are a large number of individuals who don’t find just one condo that they want to buy; they find multiple ones. If you are having a difficult time determining which D.C. condo you should buy, there are a number of important factors that you will want to examine.

Perhaps, one of the most important factors that should be examined, when buying a D.C. condo, is cost. Are you on a budget? If you are on a budget, cost will likely play an important role in choosing a D.C. condo. You will want to make sure that you choose a condo that you can afford. To eliminate wasted time, by looking at condos that are financially out of your reach, you are advised to examine, ahead of time, how much money you can afford to spend on a D.C. condo. Doing so will not only help you find a D.C. condo, but it will help you find a D.C. condo that you can afford.

Size is another important factor that you will want to take into consideration, when looking to buy a D.C. condo. As you likely already know, D.C. condos come in all different sizes, shapes, and styles. It is not uncommon to find condos in the Washington D.C. area that have one bedroom, two bedrooms, three bedrooms, or even four bedrooms. When examining how much space you will need, it is important that you examine your living arrangements. Will you be living alone, with your romantic partner, or with your family? If so, you will need to keep this in mind, as you will want to make sure that you purchase a D.C. condo that is large enough to accommodate you and all of your needs.

Location is another important factor to examine. If you are interested in buying a D.C condo, there is a good chance that you work in the Washington D.C. area or else your children may go to a Washington D.C. school. Although you may not mind a long commute to work or to your children’s school, you may want to examine location. Available D.C. condos can be found all across the city. That is why it is advised that you first examine condo complexes that are located a relatively close distance away from your work or your children’s school. Of course, you don’t have to decide to buy one of those conveniently located condos, but it might be worth looking into.

In addition to cost, size, and location, it is also advised that you examine rules and restrictions. A large number of condo complexes have numerous rules and regulations that are enforced. While these rules and restrictions, should they exist, are likely to vary from D.C. condo complex to D.C. condo complex, there are common rules that are in place. One common restriction involves pets. While it is possible to find condo complexes that allow pets on the premises, it is not uncommon to find some bans or restrictions. If are you are looking for a D.C. condo complex that allows pets, you will want to keep this in mind when searching for a condo. If any rules or restrictions are imposed, it is important to remember that they are designed to keep you and all other condo owners happy.

The above mentioned factors are just a few of the factors that you will want to take into consideration, when looking to buy a D.C. condo. As soon as you have examined these factors and found a D.C. condo or multiple condos that you would like to buy, you are advised to schedule a showing. No matter how great a condo looks on paper or on your computer screen, you will want to see it first before you officially make your decision.

Filed Under: condos Tagged With: Budget, Good Chance, Important Factors, Living Arrangements, Shapes

U.S. Real Estate Foreclosures Increase Nationwide

December 5, 2008 By Mike Taylor Leave a Comment

Real Estate Advisor asked:

Foreclosures continue to rise across America. According to the latest annual report of http://Foreclosures.com, the number of foreclosures filed nationwide in 2006 had increased by 51 percent from the previous year, with foreclosure filings nearly topping one million. When compared to 641,000 foreclosure filings made in 2005 nationwide, almost 971,000 foreclosure filings were reported last year.

Among the States, California reported the highest number of foreclosure filings in 2006 with 157,417 foreclosures filed, which is an increase by 94 percent from the year before. California is followed by Florida with 120,989 foreclosure filings. Nevada struggled with the largest percentage increase in foreclosures in 2006 of 175 percent.

The Northeast region reported 96,101 foreclosures in 2006, an increase of 64.6 percent from 58,394 foreclosures filed in 2005. Still, a few states in the region, such as Maryland and Delaware, saw a decrease in foreclosure filings.

Foreclosure filings in the Midwest region of the nation went up beyond 70 percent with many states including Illinois, Michigan, Missouri and Nebraska facing increases of 80 to 96 percent. Industrial layoffs and a tough economy have spurted the number of foreclosure filings in this region, with foreclosure figures in states such as Iowa and Kansas increasing beyond 100 percent.

The Southwest region was the most affected with one out of every 2.2 foreclosures in the country taking place there. The region closed the books for 2006 with an increase of 37 percent from 162,259 foreclosures in 2005 to 220,189 foreclosures. Foreclosure filings in Colorado increased by 55.4 percent, while foreclosures in Texas increased by 35.2 percent. Although the region struggled with the high foreclosure rates, the figures are not all bleak for the region with a few states showing a decrease in foreclosure filings. Louisiana, New Mexico, Oklahoma and Oregon reported fewer foreclosure filings in 2006 when compared to 2005. These states have particularly reported a drop in foreclosure filings in the last quarter of 2006.

Although the foreclosure reports are not very cheerful, Alexis McGee, president of http://Foreclosures.com anticipates the housing market to improve soon. Overextended homeowners, who have been struggling to keep up with heavy debt loads, rising interest rates and property taxes, can soon look forward to some relief as home inventories come down and the market start looking up again. McGee also adds that the current housing market may be the best opportunity for home buyers in the next six years.

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Filed Under: condos Tagged With: Economy, Louisiana, Previous Year, S Real Estate, Southwest Region

How To Avoid Real Estate Foreclosure

November 30, 2008 By Mike Taylor Leave a Comment

John Ash asked:

Real estate foreclosure is the legal process by which the lender can repossess or take over the property which he had lent, on the grounds of failure to pay dues. When such an action is taken by a lender, one would have to vacate the property and or pay dues to the lender for the same.

What leads to foreclosures?

Ignorance is what leads to the process of real estate foreclosures generally. One cannot afford to ignore the letters from the lender. Due care must be taken to keep the lender informed about your situation if you are unable to pay the rent. Generally, the lender would require you to produce certain financial documents as well such as monthly income and expenses so that they can verify your status and give you sufficient time to repay them. However, failure to do all these could lead to real estate foreclosure.

What steps can one take to best avoid foreclosures?

The following steps can be taken by most individuals in order to avoid foreclosure of property:

Avoiding ignorance and communicating with the lender is a must. This is the primary step and one that cannot be over emphasized. A person should always be in good communication with the owner of the land and should not ignore any communication there off.

Special Forbearance: Once you communicate with the lender, he may be able to devise a special repayment plan depending on your financial situation. Such a plan could provide a temporary reduction or suspension of the payment and could provide you with vital time to obtain the money. Lenders generally provide this provision if there is a sudden increase in expenses or a sharp decrease in income.

Modification of Mortgage: This involves the refinance of the debt, which may or may not be accompanied by the extension of the term for the mortgage. This could help you recover by reducing the payments which are made monthly to a more affordable level. This is a step, which one should take generally once they have recovered from the financial crisis and can afford the newer payment terms.

Partial Claim: In certain situations, it is possible for your lender to file for a partial claim under which the US Department of Housing and Urban Development would pay the lender the amount required to bring the mortgage to current. This is done when you execute a promissory note. A lien will then be placed on your property until the promissory note is paid in full. The advantage is that the promissory note is free of interest and is generally due when you pay off the first mortgage or sell the property- giving you sufficient time for recovery.

Pre-foreclosure sale: In certain situations, it is possible for you to sell off your property for an amount, which is less than the amount required for payment of the mortgage loan. This would give you the money to pay off a part of the mortgage loan.

As a last resort you could use a “Deed-in-lieu of foreclosure” by which you give back the property in order to avoid real estate foreclosure and therefore save your credit rating.

Real estate foreclosure can be quite hurtful; however knowing the above methods to avoid them can save you the grief of getting kicked out of your home.

Filed Under: condos Tagged With: Financial Crisis, Foreclosure Property, Lead, Money Lenders, Mortgage

Hud Real Estate Foreclosure

November 30, 2008 By Mike Taylor Leave a Comment

Heather Seitz asked:

in HUD real estate foreclosure can be a lucrative business, but you need to know how to take advantage of this program, to make a profit. There are substantial profits to be made on repossessed houses. However you need to be knowledgeable and time your buying and selling right to take advantage of these properties. Initially you will not be able to buy these types of properties for monetary gain. This is because these programs are specifically designed to help needy families afford to buy a home and investors are barred from buying these repossessed houses. Only when they have not been sold for a certain length of time can investors and agents buy these properties.

How to find HUD real estate foreclosure properties:

You can find these by using special lists of repossessed properties. You can find them through real estate agents, or online at websites that are registered with an agency. With the advent of the Internet it has become much easier to find these properties and take advantage of the huge savings you will be able to get. However it does take a little time to find these properties on your own, so it is often a good idea to find an agent who can handle this for you.

Investing in HUD foreclosure real estate:

Initially these repossessed properties are not available to real estate agents and investors. However after a certain length of time, if they are not sold, the houses will be available to investors. You need to keep up to date lists to catch the properties as soon as they come on the market. You can then resell the houses for a substantial profit.

As you can see there are obvious gains to be made from these HUD real estate foreclosures. However you have to be quick as there is a lot of competition. One of the best ways to get fully updated lists is to subscribe to a newsletter that supplies daily ones. Some sites will update their site daily; these are usually membership sites but are worth it. Explore all avenues to get ahead of your competition in this competitive field.

How to make a profit with HUD real estate foreclosure properties:

The real way to make a substantial profit with these types of houses is to buy those properties that are in need of repair. Understand the actual market value of the property before you buy. All you need to do is to calculate what you paid for the house, plus any repair costs and subtract it from the market value. This will be your profit. You can start with properties that need minor repairs at first and when you have saved up some money go on to the ones that need more repair and investment. This is because you will be investing in the house plus repairs before selling and making your money back.

Plan carefully and do your math, by this means you will be able to make a significant profit investing in foreclosed HUD real estate.

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Filed Under: condos Tagged With: Advent Of The Internet, Hud Foreclosure, Length Of Time, Repossessed Properties, Substantial Profit

Real Estate Foreclosures: Double-edge Sword or Heaven Sent?

November 29, 2008 By Mike Taylor Leave a Comment

Peter Conti asked:

It’s completely understandable…investing in real estate foreclosures can be irresistibly attractive. The lure of landing quick profits from 40% to 50% or more is enough to get anyone’s attention! But if you’re thinking about taking the foreclosure plunge it’s prudent to proceed with caution.

You have a small bucket of factors that’ll make the difference between experiencing the thrill of investor success, or the agony of foreclosure defeat. You need to have the right knowledge and walk in prepared.

If you’re new to investing…lets start off simple.

Foreclosure is a legal process whereby a mortgage holder, such as a bank, takes over possession of a property due to default on the mortgage loan. In the US, some states have what’s called, ‘strict’ foreclosures. This legality attempts to let the borrower have some time to make good on back payments. The borrower is given period of time to bring the debt current. Failing to do that, the title reverts to the lender.

You don’t want to be in the middle of someone else’s legal headaches.

And some advise to avoid offering any kind of legal rescue in exchange for part or whole ownership of the property. You absolutely MUST educate your self with accurate information from those with experience in this area. And there are ways to creatively help others solve their foreclosure problems with win-win methods.

In addition to accessing accurate legal information for your location, here are some other considerations for you…

Some legal foreclosure proceedings allow the borrower to have the ‘right of redemption’. This gives them a finite period to ‘cure the loan’. In other words to make back payments or strengthen their credit so they can reclaim title to and possession of their property.

You must be aware of critical clauses in their contract and get expert legal advice for your state or location.

But after the foreclosure is complete, or beyond question, you can create a plan to invest in the property. Some like to keep an eye out for deals in which a Notice of Default has been issued.

Then you have auctions on foreclosed property. These are quite common but still you need to do your due diligence. Never bid on a property without some first hand confirmation of its legal status and physical condition.

Here’s why this is so important…

Auctioned foreclosures are sold ‘as is’. Just like autos and other vehicles. And the difference with other property sales is there are no warranties or granting of title insurance.

A few things you should do at a minimum…

Arrange for a professional inspection to be performed. And you should do this even if you’re an experienced investor. No property is totally free from minor defects and issues. You just want to be sure it doesn’t need major repairs like a new roof, foundation repairs, or serious plumbing issues, etc.

On the other hand, if you’re looking for a fixer-upper to flip then major repairs may be acceptable. Only you know about your strategies and available resources. If you’re looking at major repairs, of course you should take those into consideration in your offer.

One other method of foreclosure investing is the REO, or Real Estate Owned. It’s owned by the lender. REO’s are properties that are auctioned but have not been sold. You can find some very good REO deals. But again you must exercise caution and do your homework!

Lastly…there’s the ‘short sale’ foreclosure deal. In this situation the lender agrees to accept less money than is outstanding on the loan. You’ll negotiate directly with the lender and come to terms. And all the due diligence cautions apply in this situation, as well.

Remember! Do your research. There are more considerations the wise foreclosure investor needs to consider. It’s possible to specialize in this area and do very well. You just need to get the right education from someone who has successfully been there and done that.

Filed Under: condos Tagged With: Caution, Double Edge Sword, investing in real estate, Plunge, Real Estate Foreclosures