Home Foreclosures And Big Profits Just Another Myth

Home Foreclosures And Big Profits Just Another Myth



Home Foreclosures and Big Profits? Just Another Myth
Everyone would like to​ find a​ way to​ make a​ lot of​ money without doing a​ lot of​ work .​
Getting rich quickly seems to​ be the American dream .​
And if​ you watch a​ lot of​ late night television, you might think that you have found the ticket to​ fast riches by investing in​ foreclosed homes .​
There are advertisements that offer to​ tell you the secrets of​ buying distressed property with no money down and five figure profits in​ as​ little as​ 48 hours .​
Other advertisements state that foreclosed houses are available in​ your area at​ rock-bottom prices or​ that some troubled owners are desperate to​ sell .​
Can this be true? is​ there easy money to​ be made buying and selling foreclosed property?
Home foreclosure is​ the process by which a​ home is​ taken from a​ buyer by someone with a​ lien against the property .​
Most of​ the time, the lender initiates this when the buyer has not made payments on the mortgage for an​ extended period .​
Lenders are not really interested in​ taking back houses; they would much rather have cash .​
As a​ result, foreclosed houses are usually sold at​ auction in​ so that the lender might recoup their investment.
Due to​ rising interest rates and rising house prices, many people have found themselves with mortgages that they cannot afford .​
But are people really letting houses go at​ auction for pennies on the dollar? Can you buy a​ foreclosed home today and sell it​ next week for a​ huge profit?
The truth is​ quite a​ bit less exciting then the advertising would suggest .​
Here are some reasons why buying and selling foreclosed property isn't all it​ is​ made out to​ be:
There is​ tremendous competition at​ the auctions .​
Believe it​ or​ not, you will not be alone if​ you appear at​ a​ real estate auction .​
In fact, in​ these times of​ sky-high prices, bidders will be plentiful as​ everyone is​ trying to​ save a​ few dollars .​
Most of​ the time, the hammer price on such auctions will be very close to, and sometimes higher than, average market prices .​
The competition is​ fierce.
You must pay, in​ full, right away .​
If you do purchase a​ home in​ a​ real estate auction, you will be expected to​ pay for it, in​ full, immediately .​
If you don't have six figures in​ liquid cash sitting around, this might not be for you.
A lot of​ such property is​ damaged .​
Property damage is​ common, and you may not be permitted to​ do a​ full inspection of​ the property or​ the damage ahead of​ time .​
This is​ truly a​ case where buyer beware can apply.
There may be title issues .​
It may or​ may not be possible to​ obtain a​ clear title on the property .​
Most professionals who buy such property spend countless hours doing title research, thus putting a​ dent in​ the notion that you can make money this way on a​ part time basis.
What about the owner who is​ desperate to​ sell before the lender forecloses? The current market is​ still pretty lively .​
No one is​ going to​ sell you property at​ one third off when they can just put a​ for sale sign in​ the front yard.
The idea of​ making a​ fortune buying and selling foreclosed property is​ lucrative for those people who market books about the topic .​
For everyone else, it's an​ expensive, risky, time consuming job .​
If you are looking for a​ quick dollar, you won't find it​ in​ foreclosed property.




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