People in the real estate investment business are asking if it’s a good idea to buy foreclosed homes. The biggest concern being what might happen as a result of the on-going robo-signing scandal. If your real estate investment business buys these houses, will there be legal trouble down the road if it’s proved the lender that foreclosed was incompetent and did something wrong?
Be Sure Your Real Estate Investment Business Has Full Title Insurance
If your real estate investment business obtains title insurance on the house, it is almost impossible for the previous owner to regain possession of the house. The previous owner’s option becomes going after the incompetent lender for a monetary settlement.
Your real estate investment business is not subject to any legal action as long as you didn’t do anything illegal such as conspire with the lender to defraud the previous owner. Since the robo-signing scandal is about executives and lawyers for the lenders not properly reviewing paperwork before signing off on it, the liability stops with them. Your real estate investment business is not connected with their actions.
Good News For Your Real Estate Investment Business
You should see this as good news for your real estate investment business. In today’s market, short sales and foreclosures account for about 40% of the deals being closed. Your real estate investment business does not want to miss these great opportunities.
Follow this link to learn about more investment options for your real estate investment business: Investment Options
All across the country, real estate investment businesses are snapping up foreclosed homes at bargain prices. In some of the nicest neighborhoods of southern Florida, you can buy houses for under $100,000, with a nice golf course down the street.
The even better news for your real estate investment business is buying foreclosures is not the high risk that it was in the past. In days gone by, you bid at an auction on the courthouse steps. Usually without being able to inspect the house other than by driving by and maybe peeking in the windows. Sometimes you got a great deal and other times the previous owners trashed the place out of anger.
Today, there are so many foreclosed home on the market that banks are having to add them to their already bloated inventory of real estate owned (REO). If the property has been neglected or damaged, they often have the house restored to a point that it can reasonably be put up for sale. Real estate listings for these properties will say something like “Remodeled” or “Completely Rehabbed”. Now, you have the opportunity to inspect them before making a purchase offer.
The even better news for your real estate investment business is that these houses are selling between 30% and 40% below market value in a market that is already down 40% from its highs. This is an opportunity of a lifetime for your real estate investment business.
How to Profit Without Buying the Home
Recently, Mentor Financial Group, LLC, a company owned by Peter Conti and Jerry Norton, revealed a new method of investing in distressed real estate where you don’t have to even own the house. They call it a Residential Back FlipTM. The owner gets to keep the house, their loan is cut down to a more reasonable size and the entire deal can be put together in as little as 2 to 3 weeks.
So there are a number of options available for investing in foreclosures and other distressed assets, and it’s interesting that new methods like the Residential Back FlipTM are being created to deal with the vast number of homes that are upside down in this real estate market.
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