Buying Real Estate Foreclosures, 3rd Edition

Product Details

The latest, most up-to-date information on one of the hottest real estate investment opportunities.

Savvy real estate investors are ready to take advantage of rising foreclosure rates, but need expert guidance to navigate this profitable market sector. This fresh update of Buying Real Estate Foreclosures gives you all the information needed to find and finance bargain properties from banks, savings and loan companies, public auctions, government agencies, or any other source. Full of handy resources-worksheets, checklists, sample documents, and more-this is a reliable, profitable guide for experienced and first-time investors alike.

Biographical Note

Melissa S. Kollen-Rice is an attorney with more than 20 years experience in all phases of the real estate industry, and the director of Long Island Real Estate Training.

Table of Contents

• Table of Sample Forms, Illustrations and Checklists.
• Preface.
• Acknowledggments.
• Introduction.
• 1. Understanding Foreclosures.
  • An Overview of the Legal Procedure in Foreclosure Actions.
  • Mortgages and Deeds of Trust.
  • Judical and Nonjudical Foreclosures.
  • Finding the Foreclosure Statue in Your State.
  • The Soldier's and Sailor's Civil Relief Act of 1940.
  • The Three Opportunities for Purchasing Foreclosures.
• 2. The Basics of Buying Foreclosures at the Auction.
  • A Day at the Auction.
  • Warning: Peculiar Purchase Ahead.
  • Finding Upcoming Foreclosure Auctions.
• 3. The Basics of Buying Foreclosures after the Auction - From Banks.
  • Defining Bank-Owned Properties.
  • Redefining Bank-Owned Properties.
  • A Lender's View of Bank-Owned Property.
  • An REO Purchase versus a Bank Auction Purchase.
  • Finding REOs.
  • Preparing Your Offer.
  • Negotiating Strategies That Help You Cut through the Red Tape.
• 4. The Basics of Buying Foreclosures after the Auction - from Federal, State and Local Government Agencies.
  • Defining Government-Owned Property.
  • Finding Government-Owned Foreclosures.
• 5. The Basics of Buying Foreclosures before the Auction.
  • Understanding the Defaulting Owners.
  • How You Can Help.
  • Negotiating with Defaulting Owners - When the Property Has Equity.
  • Negotiating with Defaulting Owners - When There is Negative Equity (aka "Short Sales").
  • Steps in a Short Sale.
  • Finding "Pre-Auction" Foreclosures.
  • Contacting Defaulting Owners.
  • Additional Strategies and Tips for Buying Pre-Auction Foreclosures.
  • Buyers Beware: Has Your State Adopted a Home Equity Theft Prevention Act?
  • Clarifying Government "Acts" of Kindnes..
• 6. Financing Foreclosures with Traditional Real Estate Loans.
  • Riddle for Buyers.
  • Calculating Your Foreclosure Budet.
  • The Burden of Proof.
  • Decisions, Decisions.
  • Types of Loans.
  • Comparison Shopping for the Best Lender.
  • Key Questions to Ask a Lender.
• 7. Creative Strategies for Financing Foreclosures.
  • Category 1: Foreclosure Purchasers with Limited Cash and Good Credit.
  • Category 2: Foreclosure Purchasers with Limited Cash and Tarnished Credit.
  • Category 3: Foreclosure Purchasers with a Lot of Cash and Good Credit.
  • Category 4: Foreclosure Purchasers with a Lot of Cash and Tarnished Credit.
• 8. Equity Sharing: Bying Foreclosures with a Partner.
  • How It Works.
  • Why it Works.
  • The Owner-Occupant's Goals and Challenges.
  • The Investor's Goals and Challenges.
  • Comparing Purchase Details and Finance Costs.
  • Equity Sharing to the Rescue.
  • Contract Terms to Agree Upon.
  • The Risks Involved in Equity Sharing.
  • Equity Sharing for Parents and Children.
  • Equity Sharing for an Investor and a Contractor.
  • Finding a Partner for Equity Sharing.
  • Equity Sharing Helps People Achieve Their Goals.
• 9. Choosing the Right Property: What You Don't Know Can Hurt You.
  • Finding the Right Property.
  • Asking the Right Questions.
  • Organzing Yourself.
  • Inspecting the File of the Foreclosure Action.
  • Hiring a Title Expert.
  • Asking for the Terms of Sale before Bidding on Foreclosures at Auction.
  • Uncovering Hidden Costs.
  • Establishing Property Values.
  • Calculating Cash Flow.
• 10. Perparing Your Bid Sheet.
  • Organizing Your Prebid Calculations.
  • Fine Tuning Your Prebid Calculations.
  • Final Confirmation.
• 11. Congratulations! You Are the Successful High Bidder.
  • When You Are the High Bidder at the Auction.
  • When Your Offer for a Bank- or Government-Owned Foreclosure is Accepted.
  • When Your Offer to the Defaulting Borrower for a Preforeclosure is Accepted.
  • Coast to the Closing with These Five Standard Operating Procedures.
  • Applying the Five Standard Operating Procedures to Your Particular Circumstances.
  • An After-Contract Checklist.
• 12. Now that You Own the Property.
  • Steps to Take for Completing the Transaction.
  • An After-Closing Checklist.
• 13. Making Repairs to Your Foreclosure.
  • Pinpointing Priorities.
  • Finding a Contractor.
  • Implementing a Competitive Bidding System.
  • Implementing a Performance-Based Payment Plan.
  • The Big Picture.
• 14. Getting Started Today.
  • Follow These Six Steps for Success in Purchasing Foreclosures.
  • From Rags to Riches with Real Estate Foreclosures.
• Glossary.
• Index.