Take it to Auction

Investment opportunities are springing up all the time.  The problem is so many novice investors do not recognize them.  These remax properties college station  are prime candidates for financial gain.  Investing in bankruptcies is nothing to fear. You just have to know what to do when you come across a deal.  The best thing to do is take it to auction.

The seller who is facing bankruptcy knows they are going to lose their house.  The bank is frustrated because they do not want a non-producing loan on the books.  Everyone is losing.  As an investor you can make everyone happy and still come out ahead of the deal.  It will take some work to put a deal like this together, but it can be done.

The seller does not want to have a foreclosure on the credit file.  This means they are willing to look at any and all offers.  The bank does not want to be dragged through the legal system with foreclosures, evictions, and sheriff sales. They will also be willing to make a deal.  This the the prime time for you to enter into the equation.  There are certain steps you must take to make sure it is a win win situation.

The first thing you must do is speak with the seller to determine what is owed on the property.  You may be surprised to find there is quite a bit of equity in the homes for sale college station.  This is a good thing.  Walk away if you can not make at least $5,000 on the deal. You may decide to pocket less money, and that is fine.  The $5,000 is a general suggestion.  You could potentially make more depending on the market.

 You want to know about any liens, back taxes, second mortgages, or other moneys due on the property at the time of sale. This will let you know what the bottom line is going to be for the property.  It is extremely important to know this before speaking to the lender.  For this example we will use a property valued at $100,000.  The seller owes $55,000 on the property.  The amount owed on the taxes is $1,200. We are going to keep this simple, so there are no liens on the property and no second mortgages.

By speaking to the homeowner, you can explain that by allowing you to deal with the lender the foreclosure can be avoided.  You may also be able to offer them a certain amount of the sale to solidify the deal.  Sometimes this is necessary and sometimes it is not an issue.  Talking to the seller will let you know what must be done.

The next step would be to speak with the lender and explain you want to put the house on the market at a public auction.  The buyer would be highest qualified bidder.  There will have to be a set time frame for the auction to take place.  This is generally thirty days.  You would offer the lender $50,000 for the property.  Although this is a low bid for the property, the lender is more apt to accept it to keep the property off the foreclosure list and out of the legal system.  Once you have managed to negotiate with the lender for a fair price, it is time to take the property to auction. 

You need to make it very clear to the seller the house will be shown to potential buyers until the day of the auction.  This will allow you to gather a list of names to make sure they are notified of the selling deadline.  You can also do any necessary repairs which may need done.  At worst, it gives you time to add some curb appeal to the property.  The day of the auction the opening bid should start at the price you negotiated with the lender.  The rest is pure profit.  In this case, you have the potential to realize as much as $50,000.  This is one of many ways of investing in bankruptcies. 

 Lisa Jones will help you get the most of your real estate college station investments. She has access to worth investing remax properties college station and she will help you find the best fit for your resources.