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Foreclosures Are Increasing, Will You Bite?
By Jeff Lakie
They say that one man’s misfortune is another man’s fortune. Few people really like to take advantage of someone else’s tough times, but in the present housing market it is nearly foolish not to. What am I talking about? The surging number of home foreclosures! Yes, many homeowners have come to the rude awakening that their dream home is nothing but a nightmare for them. Rising mortgage interest rates, sharply higher property taxes, and job loss have contributed to the increase in home foreclosures. Your getting involved may actually help someone out; read on and we’ll take a look at why you just may want to take the bite.
There is no other way to say it but this: no matter what, some people will foreclose on their homes. However, better than foreclosing is a sale prior to foreclosure which helps everyone out:
1.The seller wins because he avoids ruining his credit standing. A foreclosure may be treated like a bankruptcy, disrupting the homeowner’s credit for years. By escaping homeownership which has now become bondage, this type of owner could regroup and buy a home once again sooner rather than later.
2.The mortgage company is pleased with a home sale prior to foreclosure because they avoid costly court costs and having to maintain than later dispose of property that they do not want to own.
3.They
buyer – that
is you – can win out by getting a home that costs less than market
value. You could both make the necessary repairs or updates and keep
the home or you could turn around and sell the home for a handsome
profit.
Yes, in some situations a sale prior to foreclosure
is a true win-win-win situation for all three parties involved. Not
always, as sometimes the seller is the big one to lose or the mortgage
company may end up settling for your low deal at a loss to them. Never
should such a deal work against you, so take care to make certain that
there is value in the foreclosure.
Experts are saying that foreclosures will only be increasing in the months ahead. If you find yourself able
to swing a deal you could end up making tens of thousands of dollars off a foreclosed
piece of property. So, keep your eye on your neighborhood housing market for
distressed sellers; you just may be the “white knight” that everyone is hoping
will come along!
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