How To Buy Hud Homes Foreclosures

One of the best areas to find excellent buys are government owned real estate better known as Hud homes (Hud Homes Foreclosures as referred to by some). Foreclosures result when person who has a government insured mortgage can't afford to make the payments on his/her house and end up losing it.

Home buyers and investors can often pick up the properties for pennies on the dollar. They can also save a lot of people from having to go through the nightmare of a foreclosure. If you've been watching the news, you know that the number of foreclosures is growing nationwide.

What does that mean for you? A huge opportunity to make some serious profit. The key is knowing what you're doing.

It would be pretty overwhelming to try to figure this stuff out on your own. It's not that investing in foreclosures is complicated. In fact, it's quite simple.

But there are things you need to know that can keep you from making costly mistakes, things that you can only learn two ways: the hard way (experience) or the easy way

Some Things you will need to know are:

* How the foreclosure process works

* How to find and evaluate foreclosure properties

* How to decide if you're getting a good deal or if you should move on

* How to obtain properties at various stages of the foreclosure process

* How to fund the deal

* How to make great money from foreclosures without spending any money and with as minimal risk as possible

* How to profit from a deal, whether you want quick cash or monthly income

* How to organize your business for success

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To see a free list of foreclosed, short sale properties with pictures in metro Atlanta click here

The best way to make money from properties that are over-leveraged in this market is by discounting the loans. Most people don't realize you can do that. Lenders will accept less than what's owed them. How much less? Discounts for as much as fifty thousand to hundreds of thousands of dollars have become common in some areas. By discounting the loans, you create instant equity.

Enough equity that allows you to sell a property in a distressed market and make good money doing it. I'm seeing discounts as much as 50 cents on the dollar and sometimes more depending on the property. Meaning a house that's worth $350,000, could be bought for $175,000. How many of those do you have to do to double your income this year? One or Two!

This is a quote in 2008 from a loss mitigation specialist (the lenders foreclosure department) in Florida.

"As foreclosures continue to mount, banks are more willing to deal", said Jonas Elliott of Loss Mitigation Services of Southwest Florida, which also negotiates short sales. 'Lately it's gotten a lot easier, especially a deal that makes sense,' he said. 'Banks are willing to take 50 cents on the dollar whereas before, they'd say 80, 90 percent.'"

You are solving the banks problem and helping the homeowner avoid foreclosure in the process. The best part is that you don't need good credit, a lot of money and it's virtually risk free because you're just controlling the property long enough to find a buyer. With these type of properties you have the opportunity to:

*Receive BIG discounts from lenders
*Pick up homes .50 on the dollar
*Solve any homeowner foreclosure nightmare

I have personally found that short sales can be one of the most overlooked opportunities in the market. Although they can take longer to process, it is possible to pick up an additional profit spread up to 200 percent over traditional foreclosures. Also, there are not droves and droves are buyers competing as is often the case with foreclosures. Two are the best short sales that I've ever worked are where in one case I got a mortgage of $385,000 reduced to $220,000 and another where I got a mortgage of $548,000 reduced to $250,000.00. This is not possible on most foreclosures. Why would the bank do this.
The following illustration should give you some idea. In the second paragraph the figures on the left represent a short sale. The figures on the right a reo or foreclosures sales. This is a typical comparison of a short sale versus an reo sale.

SHORT SALE vs. REO BANK ACQUISITION

Lender & Account #: Wells Fargo #50118436
Homeowner Name: William Furguson
Subject Property: 4721 Lincoln Road New York, NY 01653
Banks Monthly Interest Income: $1453 Loan Balance as of today:
Past Due Payments Accrued: 7 ($294,000)
Current Value In Present Condition: $235,000

SHORT SALE vs. REO BANK ACQUISITION____
Current "short" offer $185,000 Expected REO Acquire $204,500
Lost interest as of today $10,171 Lost interest as of today $10,171
Future lost interest $0.00 Bank Holding Costs $7,265
Realtor Fees $11,100 Realtor Fees $12,270
Fire & Hazard Insurance $0.00 Fire & Hazard Insurance $1,250
Property Taxes $2325 Property Taxes $2325
Repairs Required For Sale $0.00 Repairs Required For Sale $11,400
Utilities & Winterization $0.00 Utilities & Winterization $650
Closing Costs $1,500 Closing Costs $1,500
Attorney/Legal Fees $0.00 Attorney/Legal Fees $5,500
____________ ___________
Total Expenses: ($25,096) ($52,331)

Sale: $185,000 - $25,096 = $159,904 Sale: $204,500-$52,331 = $152,169

NET LOSS: ($134,096) NET LOSS: ($141,831)

As you can see the bank can take far less for a short sale than they could for a foreclosure. This short sale creates a win win win solution for all the parties involved. For a free list of properties that are foreclosures or short sales CLICK HERE and if you can't see the pictures click on Free List Reo/Shortsales to refresh the screen.

Helping homeowners avoid foreclosures and renegotiate their loan is becoming an increasingly worthwhile opportunity for some. Negotiators obtain a fee usually equal to the home owners mortgage payment for processing a loan modification or payment arrangement with the lender. Should the home owner decide to walk away from the mortgage, the negotiator is in an excellent position to pick up the property at a huge discount while saving the homeowner from a foreclosure on his/her credit record.

There are millions of Americans begging for your help.
And they will pay you very well for your assistance. And it can be as simple as referring over a name and phone number. No personal contact is necessary to get paid. For an outline of the A good pre-foreclosures strategy can lead to an opportunity to help others and earn tremendous profits

Helping homeowners can be lucrative and rewarding...