Indiana Foreclosures For Sale » Foreclosures for Sale

Lake County Foreclosures for Sale – Why Not Apartments?

admin — Fri, 16 Oct 2009 17:55:03 +0000

Foreclosure real estate deals compare very favorably with other real estate deals, and in fact can be even more lucrative as good discounts are able to be negotiated. They can be purchased for rehabbing and re-sale in which irregular, but large profit margins can be enjoyed. Wholesaled, which should be the basis for any foreclosure real estate business and kept to be used as rentals for regular monthly income. Any investor who wants to become involved in Lake County foreclosures for sale, can take a look at all three of these scenarios to make a choice of the direction they wish to take in this industry.

Of course experts say that all three of these avenues should fit the profile of a successful foreclosure investor, but to get things started, perhaps one avenue might be enough, once profits have been made, it is a simple matter to branch out into the other two. However during the bad economy the US is presently experience, anyone with money to invest in this industry would be remiss not to take advantage of it.

But what about apartments, it is all very well getting involved single family home foreclosures on an investment level. However apartments are a niche market in this industry, and although not favored by all investors, the few who do favor it are doing incredibly well. It makes sense that if a single family home can fall prey to the foreclosure process, so to can apartment blocks. These are larger pieces of real estate and the mortgages over them can just as easily be miss-managed.

By the same token that single family homes make great real estate deals, so too do apartments. Deals on apartments can be conducted in more or less the same way, as a short sale, auction or REO property. Thinking in terms of the bigger picture, if you can obtain a single family home for a discount of 20% on a value of $200 000, then you can do the same on an apartment block valued at $2 million. Only because of the large discrepancy in pricing, the discounts are also going to be larger.

The same reasoning applies to the owner of an apartment block when their property is repossessed due to foreclosure. They are no longer able to afford the mortgage repayments, they fall into default and the property undergoes foreclosure. These can be bought from the lender once the foreclosure has taken place, or during the pre-foreclosure phases. The lender is still highly motivates to sell the property as they are not real estate agents and they are required to recover as much of the debt owed to them as possible. The only thing which is different from a single family home is the value and size of the property. As soon as you realize the importance of the size factor the opportunities which are open to the investor become virtually limitless.

Indiana Foreclosures for Sale: Banks Do Not Want to Foreclose

admin — Wed, 26 Aug 2009 17:07:00 +0000

It is unfortunate but many home owners don’t actually know that banks do not want to have to foreclose on a property. On the contrary, home owners believe that the bank is just lying in wait to see them slip up once in order to get a-hold of their most valuable asset. This is just not the case, banks already have far too many Indiana foreclosures for sale on their inventories and they really do not want to see more of these.

The losses incurred by a bank in the case of a foreclosure are generally quite extreme; however they don’t just grant any home owner loan modification. The circumstances around the granting of loan modification also have to be extreme in order for the bank to even consider this, because if the home owner is unable to prove that they are able to repay the modified loan on time in the future then there is very little to benefit the bank in terms of profit.

When a home owner is no longer able to pay their mortgage loan, that loan turns into a non-performing asset for the bank. Taking out foreclosure proceedings is an attempt by the bank to fix this situation. While they do make large losses in most instances with a foreclosure, this action is deemed to ensure that they are the smallest possible losses.

The major losses incurred by banks in the mortgage loan business today have been caused by a rapidly depreciating real estate market. You might find it hard to believe but these banks are actually suffering under this load. So to try to off-set these losses banks are now looking at other way of incurring smaller losses than they might if they were to forge ahead with the legalities of foreclosure.

In circumstances of loan modification the banks aim is to turn a non-performing asset back into a performing asset. This means they have to measure the basis of loan modification around the type of income the home owner is earning and what they can afford to pay for the loan while still being in a position to survive. If the bank is agreeable, they settle on a specific amount and allow the home owner to remain in residence on their property, while paying the smaller loan amount. Their calculations are generally based on a comparison of loss if they were to foreclose, as apposed to the projected payments made by the homeowner in terms of a loan modification.

However if the home owner is granted a loan modification and they still fail to make these payments, the bank stands to lose a great deal of money. During loan modification processes the home owner is generally granted a forbearance period which enables them to recover without the problem of making payments for an agreed period of time. Thereafter the new payments commence and the home owner is brought current, which is actually a loss to the bank.

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Hamilton County Foreclosures for Sale – Home Auctions

admin — Wed, 12 Aug 2009 14:32:04 +0000

Buyers who are looking at foreclosure homes in order to achieve savings on the purchase often attend auctions for this purpose. These are conducted by the lender (at the Sheriffs Office) or government agencies, and the mortgage holder or his representative is generally required to be present for these. Any investor thinking about buying a property at auction has to be aware of a number of facts and one of the ways of familiarizing himself with these facts is to attend a few auctions. This will provide the buyer with an empirical knowledge (learned by observation) of the proceedings.

Home auctions can be one of the ways of securing the deal of a lifetime, but it can also be the quickest way to lose your shirt. Buyers are seldom if ever allowed to view the property on sale first and this creates a real dilemma. One of the most important factors to take into consideration with home auctions of Hamilton County foreclosures for sale, is knowledge, the more the investor has, the better off he will be to land a good deal. There are a whole host of other factors which also need to be considered and another one of vital importance is having finance readily available for the purchase.

Foreclosures for sale at auction are sold “as is” and although it is a risky venture for the inexperienced investor, it can also prove to be very lucrative, particularly if the investor is handy with a hammer and screwdriver, or has carpentry skills. Foreclosure property often suffers from un-checked wear and tear and may also be the subject of vandalism having been left unoccupied and even owners’ revenge, by the previous home owner in an attempt to aggravate the lender for having foreclosed on the property.

Checking beforehand that the property has a clear title is very important to the bid price, if there are outstanding liens over the mortgage this can become a liability to the new owner. A title search will reveal these and if the investor feels they can get in with a low bid, clear these liens and still make a profit the deal could be worthwhile.

Conscientiously attending many home auctions could place the prospective investor in a position of finding the right property at just the right time. Many of these come and go, some are duds, while others make very worthwhile investments. A local realtor, the Sheriffs Office or a local newspaper will provide details of when home auctions are going to be held, and this information can also be sourced from the internet.

The property market at the present has many good deals available, and if you don’t want to take the risk of bidding at auction, then you could take a look at the REO market. This is the post-auction phase of the foreclosure process, when the property reverts to the ownership of the bank as a repossession.

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Foreclosures in Indiana and the Rest of the US

admin — Fri, 24 Jul 2009 18:35:17 +0000

The number of foreclosures in the US is expected to double by the end of 2009, this means we are going to be looking at numbers somewhere around 6 million! There are a number of factors which are playing an active role in the amount of Indiana foreclosures for sale as well as the rest of the US. These include, but are certainly not limited to banks who offered sub-prime loans to borrowers whom they knew could not afford these, as well as the increase in the unemployment rate. As the unemployment rate increases noticeably, so too does the rate of foreclosures taking place. Presently the unemployment rate is at 7.5% but it is also expected to increase by the end of the year to 8.5%. Strangely enough the FBI has also seen that many states experiencing high foreclosure rates are the state in which the most foreclosure frauds take place.

Foreclosures in Indiana are right up there with many of the states in the Great Lakes area (north Central US). These include Michigan, Illinois and Ohio. Presently Illinois is in the lead with one in every 365 homes being in foreclosure meaning the state has 14 000 foreclosed properties which have to be sold. Western states such as Arizona, California, Nevada and Idaho are faring even worse, with Nevada probably being the most hard-hit. Here we find that one in 76 foreclosed properties and in California we see one in 173. Georgia and Florida are also experiencing extremely high rates of foreclosure on properties.

While this information may have the aspect of doom and gloom about it, it is not all bad, someone has to buy these properties and this is where the property investor comes to the fore. Many people would love to get into real estate investment as they know this market is where great wealth lies. You only have to read “Rich Dad, Poor Dad” to know that property investment is the key to wealth.

Investors are picking up foreclosure properties at discounts of as much as 30% on market value, sometimes even more! This is what makes the foreclosure market sound so promising. Picking up a single family home valued at $300 000 at a 30% discount means you would get it for $210 000. However, if you think about this in context, imagine what the discount would be on a $3 million apartment complex? Let me add it up for you, that is $900 000, nearly $1 million in discounts!

If you had though about investing in foreclosures as a means of becoming wealth and had only though about single family homes as an option, perhaps now is the time to take a look at investing in apartments. It is more common for investors to focus on the single family home concept, however apartments present much bigger deals as well as much bigger discounts and there are plenty of these available too.

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Allen County Foreclosures for Sale – Alternative Methods for Wealth

admin — Mon, 18 May 2009 15:19:25 +0000

As the economy still continues to decline, it is imperative for people with money to invest to find alternative ways of making their money work for them to gain wealth. There are a plethora of “get rich quick” schemes, you only have to check your inbox to see these (generally under spam), but really they are not worth anything in realistic terms. Real estate investing is well known to be the kind of investment business which does create long lasting wealth.

One of the leading methods of buying Allen County foreclosures for sale has become the short sale. Although short sales are not legislated in any was as the foreclosure is, it is still an accepted business practice, which involved the home owner facing foreclosure, the lender and the prospective buyer. Short sales have been in existence since mortgage products have been available and were first practiced during the Great Depression which took place world-wide during the late 1920’s and for most of the 1930’s. This started in the US with the Wall Street Crash in 1929.

At this time it was realized that banks were in a very bad position, they were sole mortgage holders and borrowers were defaulting at an alarming rate. They then came to the realization that being the only holders of mortgage loans was a huge risk and ever since then this has not been considered to be a financially sound practice. This is when the concept of investing savings deposits into groups such as hedge funds and unions which were managed by different decision makers came about.

The bank still remained the senior mortgage holder for obvious reasons but the risk of the debt was split and this reduced originating mortgages while increasing the amount of mortgages the bank could vest in. The by-product of this was that it stimulated the US economy, and banks were able to borrow, lend and invest against existing mortgages, which allowed more home owners to bail themselves out if they defaulted on their mortgage, in other words the short sale.

The short sale is a sensible way to reduce the risk for lenders at the same time enabling home owners to exit from a mortgage they can no longer afford, with what is left of their credit rating in tact. However for the property investor the short sale also provides an alternative method for investment to create wealth.

In effect the prospective investor identifies a home owner whose mortgage has gone into default; this is public information and is posted at the courthouse when the home owner receives a notice of default. Now comes the hard part, contacting the home owner. If the home owner has notified the lender that they are seeking a short sale (and you have to notify the lender to see if they will allow it). Then everything is fine, if the homeowner has not and is not aware of short sales, or is in denial it is another situation entirely.

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Johnson County Foreclosures for Sale – Good Deals in the Present Property Market

admin — Wed, 22 Apr 2009 13:39:05 +0000

Purchasing Johnson County foreclosures for sale offers many opportunities for home buyers to purchase property at greatly reduced prices. It also offers potential home buyers with an opportunity to buy a home that they might not normally be able to afford in a better than good neighborhood. These are just two of the benefits of buying foreclosures for sale; others include incentives by the government in the form of reduced interest rates, and even low down-payments.

Buying a foreclosed property does have some challenges, but these are very dependent on which phase of the foreclosure the buyer pursues the deal and by the time it has reach the REO phase there is relatively little to worry about. The most the home buyer might have to deal with is some repairs caused by theft, vandalism and general wear and tear due to the property being unoccupied for an extended period of time.

There is another aspect to buying foreclosures that does not necessarily appeal to the home buyer, more to the investor and this is the foreclosure clean-up business, often referred to has rehabbing. This entails the purchase of Johnson County foreclosures for sale, for the sole purpose of cleaning them up to resell them as quickly as possible and make a good return on investment by profiting from the sale.

There are definitely costs attached to starting this kind of business, but more and more people are doing this to make profits and are being successful. This is chiefly because foreclosures on the property market are so prolific at present and in the US last year alone more than 2 million foreclosures came onto the real estate market. It is possible to start a foreclosure clean-up business on the cheap, and there are many suggestions available online of how to do this.

For the purposes of this article, we shall discuss a few. When starting your foreclosure clean-up business it is important to note that much of the equipment you require may be hired. For instance a trailer and dumpster, foreclosure clean-ups generally require these as they typically have a load of debris which needs to be removed. Contracting your friends to do the work you are unable to do is another way of cleaning up on the cheap. They are happy for the work and will almost certainly give you a good price.

There is all kinds of equipment need for foreclosure clean-up, and some of it you will have in your own garage or tool-shed, this can be used until such time as you have sufficient funds available to buy equipment specifically for the business. These kinds of equipment include ladders, drills, lawnmowers and various other tools and gardening implements. Cleaning that foreclosure up quickly and getting it back on the market or rented out should be foremost on your mind, as this is when you start to make money.