How To Make Money With Foreclosures Property and Homes And Still Sleep At Night

By Carolyn Langlois

The old saying that the rich get richer has never been truer than right now. If you have money to invest, you can make a killing in the housing foreclosure market. Some investors look at today's foreclosure crisis as a huge opportunity. For others, the opportunity that comes at the expense of average, hard working families is a little harder to swallow. If you fall into the second category, here's how to make money with foreclosures and still sleep at night.

Many of the people who are losing their homes to foreclosure are good people who have been caught up in a bad situation. They may have lost their job because of the downturn in the economy. Then of course there was the debacle of subprime interest rates which led to plunging housing values. As an investor, you need to realize that there is little you can do about this.

But there is a way to help and still turn a profit. Because you are able to buy multiple houses for just pennies on the dollar, you really have very little cash tied up in each house. Keeping that in mind, here's how to help.

Purchasing a number of houses in a community will give you a few options. One thing you could do is to find another investor and sell the properties in bulk for a profit. Another thing you could do is to just sit on the houses until the housing crisis passes and the market rebounds and then sell for a profit. The third thing you could do would be to rent out those houses.

People who lose their homes to foreclosure are, sooner or later, forced to move. Usually they either move to a rental unit, move in with other family members or friends, or worse, have nowhere to go. In each of these scenarios, if they had the option to rent a nice house for an affordable price, chances are they'd jump at the opportunity.

This could be a real win-win situation. You will be able to rent out houses you've purchased so you'll recover your expenses and even make a profit. The house will be lived in so insurance costs will be less. When the economy picks up, you can resell for even greater profit.

The other part is that families will have nice places to live in for a cost they can afford. Why not give your tenants first offer to purchase at a guaranteed price once their financial situation improves. The price will be more than you paid at pennies on the dollar but still a deal for them.

If you do this, it is far more likely that your tenants will take good care of the property since one day they may be the owners.

When the time comes that they are financially able to purchase, you could even consider holding a private mortgage. As long as the rent has been paid on time, why not continue to collect money? It may be difficult for them to get a mortgage after suffering a foreclosure so a private mortgage may be the answer and that way you still technically own the property.

Think this idea is crazy and unworkable? You'd be wrong. This exact idea has been used by more than a few investors.

In a recent interview, one of those investors said that he feels good being able to help people who have lost their homes through foreclosure. They get a good place to live and raise their family and he gets rent money with more to come when he sells the property.

These investors have found out how to make money with foreclosures and still sleep at night. How about you? - 32169

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Suggestions On Methods To Purchase A Connecticut Foreclosure

By Henry Higgin

For those who have been searching for a house, a good option to consider is investing in a Connecticut foreclosure. There are many available and it can be a good way to get a house at a decent price. If this option sounds interesting to you but you are not sure what you should do, here are some suggestions for steps you can take.

Generally, a foreclosure has happened because the individual that owned the house previously could not pay the mortgage. As a result, the lender takes control of the housing again. Usually this means that the house is discounted reasonably because the lender is looking to still make a profit. The first step is to start searching for foreclosed housing in areas you are interested in.

When you have found some houses that you are interested in purchasing, find an agent that you are interested in working with. You need to find an agent that has previous experience in foreclosures. Many lenders and sellers will not accept bids or offers from individuals who are not represented or have poor representation, so this aspect can be very important.

You should take care in examining the houses that you are considering. There are a lot of foreclosures that are in decent condition and you will not have to repair them. However, there are many foreclosed houses that also need repairs and fixing up. You should know what the situation is regarding repairs in any house that you are considering purchasing and estimate the costs of those repairs.

It is a wise idea to examine your credit report and fix anything that may cause a problem. If there are any problems with your report, you should have it fixed before you attempt to buy a house. You should also consider getting pre-approved on a mortgage because this can be requirement in order to get some types of housing.

Check to find out if the house has any unpaid property taxes. You may have to pay these after the purchase of the house. Laws vary from state to state and different counties. If you have a real estate attorney, they will be able to help you with this and explain different legal terms to you that may come up.

A foreclosed house is most likely going to have more contracts and paperwork to fill out than you might deal with otherwise. If you are going to be purchasing from a government agency, you can expect even more paperwork. Because of this, working with a real estate attorney can also be a wise choice because they can help to explain what is happening with the contracts that you may be signing.

These are just some of the basics to consider regarding buying a Connecticut foreclosure. Foreclosures are a very wide topic, however, the choice can be very beneficial if you are interested in purchasing a new place to live. If you need more information, you should consult with an agent or other real estate housing source. - 32169

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Buying A Home - 10 Facts You Need To Know About New Homes

By Sarah P. Shimanski

New home planned communities or developments are sprouting up all over the U.S. Statistics show that up to 1.6 million new homes are being constructed each year. If you're a homebuyer searching for a new home, there's nothing like the anticipation of moving into a brand new home tailored just for you. In spite of the positive features offered by a new home, there are negative features you should be aware of. First let's go over the positive features:

1) You'll Be The First Owner - There's nothing like the feeling of moving into a brand new home designed just for you. You can expect everything to be immaculately clean.

2) The House Was Designed Just For You - With a new home you get the opportunity to customize certain features of the home including the paint color, type of flooring, and grade of fixtures. You also get the option to select the floor plan suited to your particular needs.

3) Modern Conveniences - You'll find new homes offering features designed just for today's lifestyle. Convenient features like an attached 3 car garage, open floor plan, and high speed phone and cable lines. New homes also come with built-in energy saving appliances that won't need replacing for at least a few years.

4) Green Friendly - New homes are built with energy efficient construction materials designed to save you money on your electric and gas bills. These materials also reduce our consumption of earth's natural resources.

5) Master Planned Community - As you look into buying a new home, you'll find most of them built in master planned communities. Many of these communities have HOA (Homeowner's Association) rules and guidelines every homeowner needs to follow. These communities also feature community swimming pools and recreation centers.

Now let's examine the disadvantages to buying a new home:

6) More Expensive - As you price the new home market, you'll find they cost more than older homes. However when it comes to selling your new home, the resale value will be higher. Another benefit to buying a new home is you can find some good financing deals offered by the builder.

7) Limited Representation - Unless the builder cooperates with outside agents, you'll have to deal only with the builder's sales agent. This limits the amount of protection you'll receive because you won't have another agent looking out for your best interests.

8) You're The First To Find Flaws - Buying a new home can be an exciting process, but you'll be the first to discover any flaws your new home may have. New homes are not without problems and the construction materials used aren't as durable as older homes.

9) Postponed Finish Date - While a builder has the best intentions of completing a new home by the deadline, it's not uncommon for the completion date to be pushed farther out. Unfortunately builders seldom pay you for the delay.

10) Regulations - Planned new home developments require all homeowners to follow their written guidelines and regulations on what you can and can't do to your property. Unfortunately, unless you're will to consider the option of relocating, you're stuck having to live by these rules. - 32169

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A Brief Rundown Of Different Internet Resources To Find Arizona Foreclosure Listings

By Kenny Strickland

When looking on the internet, where does one search to find Arizona foreclosure listings - and what does the word "foreclosure" mean, anyway?

When a person defaults on his property loan, it forces the lender to take it back - and this is known as "foreclosing" on the property. One person's loss has often been another's gain, as many times the lender is in a hurry to unload the property in a quick sell, and recover the initial investment in the property. In this way one often happens on a terrific deal.

Finding listings for these types of homes in Arizona is easier than it once, was with advent of search engines. In addition - many real estate agencies, resource publications and government entities involved with regulating foreclosed homes and properties in the area, now have their own websites - which means a lot of the information one requires for purchase is accessible over the internet. Here are just a few useful resources for the potential home-buyer to check out:

Search engines: Search engines should get credit as the easiest way for the lay person to pull up general links for foreclosed properties in Arizona - and the housing market in general. This is an especially great place for one to start, if he isn't sure in the beginning which direction he wants to go as far as home buying - and therefore needs a broader search to give him some various ideas of everything out there. Once he's narrowed it down, he can search for more specific topics.

HUD-provided sites: HUD - The Housing and Urban Development Department - provides some links to REOs (real estate owned property agencies) with listings of any foreclosed properties they may have access to. This is available to interested parties, free of charge. A person just finds the link he wants and clicks it. He's then taken to a form where he fills in information to indicate what specifications he's looking for in a property - along with his name, phone number, and other personal information necessary so an agent can contact him in the future.

REO (real estate owned) property sites: Just like the others, these agencies staff regular agents to help with the home buying process from start to finish - this includes educating the loan applicant well in advance, what is required of him for qualification and purchase. It's pretty easy to find these agencies and view their listings. All a person needs is to choose the region of the state he's interested in, click on the link - and then sit back as the many listings are delivered before his eyes - complete with all the nifty details of each property, and the asking price, as well. The site also includes links to buyer need-to-know information - such as the state laws governing the purchase of foreclosed properties in Arizona.

Online property auction sites: Members pay a small fee, and have access to extensive listings in every region of any state in which he has an interest. They also provide other useful things such as name and contact numbers for real estate agents that can help them with their interests. Members can also participate in the online auction sector of the site - for another fee, of course. This is crucial as the member is notified of all upcoming online auctions, including the details of where and when certain properties will be on the auction block.

Government regulated housing sites: A person searching for a foreclosed home in Arizona - or any other state, for that matter - should know ahead of time that he will have to go through the infamous red tape when the property of interest is under the state government regulations. For example, there is a catch when a person goes to sign up for free membership - and free viewing of any state's thousands of listings. The snafu is that the home-buyer must pre-qualify to meet the government's protocol in order to be allowed access to even view the listings.

There many helpful resources one can use to locate Arizona foreclosure listings on the internet. Even though takes a while for someone to actually buy a foreclosed property - one who has patience and uses the resources he finds on the internet, might just reach his goal faster than he thinks. - 32169

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Looking At The Seeds Of The Start Of California Foreclosures In The Golden State

By Jack Bennington

The roots of the problem of California foreclosures in California has a long and thoroughly undistinguished history that goes back to the mid-70s. With the passage by the U. S. Congress of the Community Reinvestment Act of 1977 (more familiarly known as the CRA) and the anti-property tax initiative known as Proposition 13 by state voters in 1978, all the ingredients for an eventual real estate crash in California were there.

What most don't realize is that the CRA wasn't originally written to do what it was made to do at some point in the mid-1990s. Misapplied as it was, home loan lenders were soon being encouraged to extend many more loans than they really should have underwritten. Proposition 13 also did its part by keeping the costs of home ownership in California lower than they probably should have been.

Some economics experts believe that a combination of easy lending (brought on by the CRA in many cases, as it was misapplied by federal housing regulatory agencies and the Congress) and the possibly artificially-low property tax rates created a long and unrealistic demand curve for a supply that was insufficient to meet that demand (homes and properties of all types). House prices went up, sometimes steeply, for far longer than was the norm.

Up through the late 1990s, house values usually rose at a stately and slow pace, when looked at in inflation-adjusted dollars. Many people bought homes precisely because they wanted to live in them and not for any investment purposes. They'd often also put down at least 20% in down payment money as proof that they were in a home for the long haul.

As the cost of money dropped over the last decade -- in terms of interest rates and the like -- this money became easier to get and borrowing it for a home loan even easier still. This is where the CRA came in to play, as regulators encouraged lenders to get loans to people who often had little or no money to put down and with terms, in some cases, that really shouldn't have been offered.

Of course, all of these buyers went out searching for homes and with pre-approved loans for much higher amounts than they should have been able to obtain. Sellers, realizing the demand for homes was climbing upward every year, raised their prices as they should have. It looked like it could go on forever, but 2006 finally saw the beginning of the bursting of the bubble, though many parts of the country missed it initially.

Not out in California, though. And soon enough the rate of CA foreclosures began to climb. Many experts ascribe this climb to actions that occurred way back in the mid-to-late 1970s, as a matter of fact. And now that the bubble had burst, many owners were sitting in properties that were worth much less than they paid for them and suffering from the recession as well. No wonder banks are sitting on properties they can't even begin to recoup on, though a smart investor may be able to.

Many people in California and around the country, looking at the bellwether indicator of CA foreclosures, probably are fervently hoping for a strong economic recovery. Many home markets have lost up to 50% or more off the average price of a home and any positive news signaling an end to the trouble and turmoil in real estate will come as most welcome news, it's probably a safe bet to say. - 32169

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How To Purchase A Connecticut Foreclosure Residence

By Jack Bellay

There are plenty of Connecticut foreclosure properties that are available on the real estate market at the moment and this can be a good opportunity for buyers to try and get a bargain home below the current market value for it. The process that is involved with foreclosures can be complex however, so it is important that you have some understanding of the process as it pertains to Connecticut before trying to buy one of these homes.

First off the process can be quite involved and complex. If you have not bought a foreclosure before, then it is definitely advisable to get yourself a real estate solicitor to help you through the process and explain exactly what is involved. In Connecticut, there are currently two different types of foreclosures - foreclosure by sale and strict foreclosure. The type that is implemented in different situations is governed by some regulations and practices that are decided upon by a judge.

In Connecticut the entire process begins when the institution that is owed money by the borrower puts in documents to the court claiming that they are owed money. The owner of the home is alerted to these claims and given a date when they are to come to court to have what is known as the return date. On this particular day the judge will decide what process of foreclosure is to be followed. They will also determine the amount of money that is owed to the lender and the value of the home.

Strict foreclosure is generally chosen by the judge when there is no equity in the home. The borrowers of the sum of money will then receive a date for when the owning money on the unpaid mortgage must be repaid. If after this time the money has not been paid back and brought up to date, the bank or other lender can take over the home. In this instance the time frame that is generally granted is up to five months.

The foreclosure by sale process may be instigated when there is equity in the home. The judge will then order that an auction is to take place and a notice of foreclosure will be placed in the newspaper classified advertising section. At any time the borrowers can put an end to the sale of the home by repaying the amount of money that is outstanding on the mortgage and bringing payments up to date. If the home owners are still behind with the payments by the date of the auction it will continue as planned.

When the judge implements the foreclosure by sale process, the date for the sale is usually set between 2 and 3 months from the return date. By law the sale of the house must be published in the classifieds of the newspaper. Someone wishing to buy the home at the auction must pay a deposit of 10 per cent on the market set price of the home.

After the auction date the judge has to decide whether to approve the sale and this is generally done within 14 days of that date. At any point before the judge approves the sale the owners can pay back the money and keep their house.

When the judge has approved the sale of the home the winning bidder normally has 30 days to complete the payment of the price of the home. - 32169

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Buying A Home - Is An Older Home Right For You?

By Sarah P. Shimanski

Buying an older home can be a rewarding experience. Not only do you get to enjoy the historical charm, you also save money as older homes typically cost less than newer ones. Before you decide to buy one, here are ten facts you need to know before making your final decision. First let's examine the benefits:

1) Price Range - Older homes tend to be priced more reasonably than newer construction homes. Although you may find the opposite to be true with vintage homes located in the heart of metropolitan areas.

2) Construction - You'll find the workmanship and construction materials used in older homes to be higher in quality. Most older homes feature thicker beams, solid fixtures, heavy wood doors, and thicker walls.

3) Established Community - It's easier to experience the ambiance of the neighborhood by walking down the streets of an established neighborhood. With new homes, you only have architectural drawings and empty dirt lots to look at.

4) Mature Landscaping - Unlike a newer community, older neighborhoods feature mature landscaping with mature trees and flowers.

5) Character - Older historical homes feature more detailed architectural styling with detailed crown molding, custom built-in cabinetry, and rich hardwood floors. You won't get these details in a newer home unless you're willing to spend extra money to add these features.

Now that we've gone over the advantages, let's go over the disadvantages of owning an older home:

6) Improvement Costs - The appliances and fixtures in an older home have endured years of use and will require money to replace and upgrade. The water heater, light fixtures, and faucet handles will need to be replaced.

7) Higher Energy Costs - While older homes use more durable materials for construction, they aren't the most energy efficient. Be prepared for higher heating and cooling costs with an older home.

8) Decor - An older home will usually feature old outdated colors, wall coverings, and flooring. Plan on spending extra money and time changing the decor to appeal to your individual taste.

9) Less Ergonomic Floor plan - Floor plans in an older home were designed with a different lifestyle in mind. Smaller rooms and a less ergonomic layout may make it difficult for you to install a wide screen TV or design a functional home office.

10) Expect A Lower Resale Value When It's Time To Sell - For the same reason why you were able to afford your home in the first place, older homes tend to have a lower resale value compared to a similar sized newer home. - 32169

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