This information will be very beneficial even if you’re experiencing a pandemic or whatever economical situation you could be facing. In Foreclosure.com you can find amazing deals and here you will find out why. First, let’s go over a couple of concepts that are extremely important for your real estate business life.
It’s extremely important that you understand what goes behind the scene of anything that has to do with the stages of a foreclosure. There are four stages. Some of them are actually lumped in together, some of them can be separated, but it’s very important that you pay attention to this because the way a foreclosure is going to work out.
The four stages to buy a cheap house
These stages are:
- Short sale
You might be wondering, what does it matter, isn’t that the same thing? No, they’re not the same thing, and we will explain you why. When you are at the stage of pre-foreclosure and the short sales, you have better chances of finding a house in good conditions because the homeowner was most likely to still be residing in the house. They’re trying to work things out with the lenders so there may be less stuff to be repaired.
As you move along, you will most likely find houses that will require a lot of renovation. The “not so pretty” houses. Why? because there’s an emotional component to it. People have been forced out of their properties, and at this point, they want to get back to the lenders. They’re probably thinking, “Well, I gave all my savings and I did what I could to care for this house and now you want to take it away from me? If I can’t have you won’t have it either so let me just destroy everything that comes my way, so that it hurts you even more.”
Once it gets to the point where the property becomes lender-owned, there is more labor that’s going to come from you in terms of getting the house all fixed up and getting it all pretty again. Therefore, it will not only require a lot of work from you, but also some level of experience for you to be able to get the property nicely fixed and ready to go.
An useful Tool to Buy a Cheap Houses: foreclosure.com
We’re going to focus on the pre-foreclosure, the short sales, and, of course, the foreclosure. It’s available for all 50 states, so regardless of where you live, it’s going to be able to provide you with the information that you need depending on the area that you’re interested in investing, or you could also be purchasing for your first home.
As you scroll down, you will see that they have some recommendations based on the area where you live. What the website does is that they leverage your location, your physical location, depending on the area what you’re actually visiting in the website, and they provide certain recommendations, so that way you don’t have to go that far. Maybe you’re interested in investing in properties behind your backyard. What they do is they recommend places or properties nearby the area where you live.
Let’s say you want to explore something in Texas because there’s a lot of noise around Texas and how it is a great state to invest. You have two choices to do this. One is by simply hovering over the map, or you just simply go into top cities, or you can just simply type in the zip code where you’re actually interested in investing.
You can either search by city or search by county. You want to see beautiful houses, you want houses that will require the minimum amount of renovation as possible. Now, we have a couple of listings at the pre-foreclosure stage. Let’s say you are actually curious to check out one in Lake City. What you’re going to do is click on ‘view the details’. You will see, you get a sneak peek into what they have to offer in terms of information. It also shows you where in the foreclosure timeline the properties are, whether they’re in pre-foreclosure or at the auction stage, or whether they have been repossessed by the bank.
In order for you to get access to this type of information, you do have to create an account with them, and you should know that we have become affiliated to Foreclosure.
In fact, they actually do update the site on a daily basis. For the most part, you will get the most accurate information as possible. When you sign in, you will notice that everything will be unlocked. You will see the address of the property, and also some of the pictures.
Foreclosure.com is, in fact, a Google for properties.
It’s like the yellow pages for all kinds of properties that are either in pre-foreclosure or an auction. This is a one-stop shop repository where you can come in and find pretty much everything you like. homepath.com, hut.com, all that information that you will find in those websites are actually pulled together and presented to you in one single platform in foreclosure.com.
This website is not just simply a one-stop shop for you to come in and check out the properties that are readily available, they also have tools for you to leverage in your preparation to invest in this type of property.
Foreclosure status means, the owner of the property has defaulted on his mortgage obligation and the lender’s taking steps to foreclosure.
You can learn all about foreclosure homes in Texas, you can learn all about bankruptcy laws, and then any glossaries, foreclosure laws. This is amazing for the real estate world. How to buy a foreclosure? You can learn about the basic steps to purchasing a pre-foreclosure, or any basic steps that you will need to be aware of when you are buying a property at an auction sale, so all in one-stop shop.
Same thing with the foreclosure laws. Depending on where you’re looking to invest, or where you’re residing, the laws are actually quite different from one state to another. Make sure you come in very well prepared and take a look at all the readings. You can’t really ask for more. This is a very complete website. It shows you everything that you need to know, and also will help you learn anything about the glossary so you can learn all about the real estate language, the foreclosure language that will be beneficial for you.
The redemption period
Why is that important? A redemption period is “The amount of time given to a foreclosed borrower to effectuate the use of the statutory right to redemption and reclaim the property after the payment of all defaulted sums, costs and fees.”
What does that mean for you? It means that you have to pay close attention to the redemption period and the state that you’re investing in, because the last thing you want is to buy a foreclosure property, fix it up, make it all nicely, only to find out that the owner of the house came back and, “Hey, I was able to pull all the money. I want to buy my house back with all the fixtures that you already provided.” You definitely don’t want to do that.
Working with a good title agency and also a good real estate attorney so that they can both complement one another and also guide you through this experience of investing in a foreclosure property.
Their role is to provide the information readily available for you. They don’t work as a mediator of anything that you do here, it is actually your responsibility to make sure you work with the right experts, to make sure that all the issues with the title or all the issues with the property are actually taken care of. What foreclosure.com does is just basically presenting this information for you.
Issues with the plumbing normally will require a specialist, or having to tear down a wall to truly see the issue. Those are some of the things that you truly need to pay attention to and inquire about them, if you have the chance or the opportunity to visit the property.
These are excellent tips and things to keep in mind. Another way for you to find great deals is by coming to the tab where it says “cheap homes”. You can find the cheapest property available. That will give you an estimate of what to expect to sell the house for in the event that you pick up a property for $5,000 and go in and do a nice flip and make it all pretty and sell it, or you can do a nice flip and then just simply get it rent ready and have those become either your first rental or a nice addition to your real estate portfolio.
Rental home deal
What exactly is a rental home deal? A rental home deal, it’s basically a tenant that is interested in buying a home in a specific area, but are not entirely sure on whether they want to or they’re ready for homeownership yet.
They can work out a deal with their landlords. This is the only time where you’re allowed to be emotional because you’re looking to buy a home for yourself, for your family, to watch your children grow. What this will allow you to do is to sign a lease for maybe a year or two years, make your rental payments and then part of that rental payment will serve as a contribution towards the down payment of your home.
That way you are locking this property from hitting the market from other people coming in and bidding an offer on it. You’re locking it for the next year or two. That way you can take advantage of that timeframe to work on your credit and prove it at the same time.
Let’s assume today you are one of those families who are still believing in the economy in California and you want to buy a house in Los Angeles. You can go to the website and you’re going to check-in in Los Angeles. Then, check out what are the houses that are really available for rent-to-own. Let’s say you see a property in Long Beach, California, and it costs 401,000. First, you have to check out the details.
Remember, rent-to-owns does not have anything to do with a house in foreclosure. This is a one-stop shop for everyone to gather and find good deals. Whether you are a real estate investor looking for cheap deals or whether you’re a homeowner looking to buy a house but perhaps you’re not ready today, but at the same time, you don’t want to let that opportunity go. You can find some properties within the same block that are worth $2.1 million, 1 million, 636,000.
It varies, and it’s quite diverse. You can find all of that available on this website, rental price at 2,100. For 2,100, you can sign up for a nice lease that’s going to help you contribute money towards the down payment of your house and let you be ready to close this property, whether it’s one or two years down the road.