Pre Foreclosure Investments are
They Right for You |
By Bill Carey |
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Foreclosures are at an all time high in most states. Does that mean
that pre foreclosures are right for your real estate investing
business? Some gurus, mentors and investing teachers are pushing
pre foreclosures as the only business to be in, while others are
saying to take a step back. You may want to take a serious look
at how you actually work your pre foreclosure business.
Attracting Business/Advertising/Marketing Do you use
bandit signs that say I Buy Houses, Foreclosure We Can Help, and
We Buy Houses for Cash. How about cards, letters, or flyers what
do you say? We can help, I'm an investor not a real estate
agent, and I buy houses not list houses. I can close quickly.
You may want to revisit your wording if you do not buy or help
or pay cash or close quickly. States Attorneys General, HUD,
and Federal Agencies are beginning a big push to crack down on
fraudulent transactions in real estate and mortgages.
Do You Offer to Help? We can help. How do you help
Do you offer counseling and help direct the sellers to services
when you can't help Offer options such as option #1
make up all your back payments make your loan current, option #2
work with your lender and roll your back payments and interest
into a new loan, option#3 find a new lender to pay off the
current loans, option #4 sell the big cars, the boat, the RV to
make your loan current. Or do you go for the kill--Get the deed!
--Get the deed!--Get the deed How do you help
Do you Buy Houses ? Which pre foreclosure home did you buy
The business of pre foreclosure is to take control of the
property while you work with the bank or banks to accept an
amount less than what's owed on the property. Did buy the
house? Well the $10.00 you gave the seller to sign the deed and
other papers to allow you to work with the bank doesn't mean you
bought the house. Did you record the deed? Will your name or
your corporate name or trust name show up in the chain of Title
Did you buy the house?
Do You Pay Cash?
The $10.00 you paid to move the deal along, or the $20.00 you
paid because usually you only pay a dollar but all you had was a
ten or twenty. Was that your purchase price or like you said
that it was legally required that money change hands to bind a
contract. Or did you buy it with the excess profits that you
told the sellers you are going to split with them? Maybe you
gave them $1000.00 moving money or a couple of thousand to close
the deal because you know you can create equity by working with
the bank, now that's cash.
Who Do You Work For? -
In pre foreclosure transactions you are the implied agent for
the seller when they allow you to represent them in this
process. They have given you power of attorney, given you
the right to access their accounts of the mortgage company and
signed over to you ownership of the property (if you record the
deed) and in too many cases signed over blank forms which you
fill in with the correct names when you get them. You are now
working for the seller and you will be in deep dodo if you do
something wrong.
If the deal doesn't go through do you
give the house back if you bought it Do you tear up all
the paper work and say next? Do you get your money back? What
help do you offer now? What can you do when the bank doesn't
work with you? In the end most don't work with you. If pre
foreclosure works why do all of these homes actually go into
foreclosure at record levels across the country? You can pay
thousands for a weekend seminar in pre foreclosures or buy home
study courses or sign up for mentor programs the fact is you
have no control of the process and if you make promises and
don't deliver you may get into big trouble. |
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