making big money investing in foreclosures without cash or credit pdf
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Making big money investing in foreclosures without cash or credit pdf dogmen csgo betting

Making big money investing in foreclosures without cash or credit pdf

Also, the redemption period is typically longer in mortgage states than in deed of trust states—up to 12 months in some states. Insider Secret: In many states, the homeowner can sell his redemption rights to a third party—an investor like you! Imagine a case in which a house is auctioned and no one outbids the lender, but you know the house is worth significantly more.

You connect with the owner and pay that person to assign his redemption rights to you. Then you use the redemption period to raise funds to pay the money owed to the lender including all costs, penalties, 22 Making Big Money Investing in Foreclosures without Cash or Credit and accrued interest and buy the house back. Sometimes the best deals can be made after the game appears to be over. What happens to the homeowner after the foreclosure auction? It depends. If the borrower has any redemption rights usually the case if the lender used a judicial foreclosure , then the new owner of the property must typically wait until the entire redemption period is over before getting the homeowner out of the property.

If the property is rented, the new owner will require that the tenants pay the rent to him. Unless the trustee made a serious mistake in the foreclosure process, the judge almost always sides with the new owner. While there are advantages to buying in each stage, our preference is to buy in the first one—preforeclosure—for three reasons: 1. You have much less competition. This gives you the chance to negotiate a better deal. Remember, once a foreclosure officially starts, every investor in town knows about it and will be mailing, calling, or visiting the homeowner.

You can get into investing with very little money. When the foreclosure process is in the early stages, the homeowner tends to owe less money in back payments. The seller gets a fast out and saves his credit, and you buy another investment property that often has a positive cash f low from day one plus a chunk of equity. You also get to leverage your way into the deal without taking on the liability of personally guaranteeing any debt. You have plenty of time to find a solution.

Your second-best choice is to buy during the reinstatement period. In many states, even after the foreclosure has technically started, you can still make up the back payments and reinstate the loan. You bring the loan up-to-date and make payments every month as the seller did before getting behind.

The major benefit to buying this way is that you can still use the existing financing as a way to leverage yourself into the deal. Therefore, you can often get hefty discounts on these properties. Also, once a property has been sold at auction, the seller still has the right to redeem the loan and buy back the property in many states. This can be a highly profitable way to buy. Ultimately, the biggest benefit of buying after the auction is that most investors think the game is over so you tend to have less competition.

This means you can actually take the time to properly conduct your due diligence and have the property professionally inspected. Your fourth-best choice is buying during the final days up to the actual sale date. The house was a three-bedroom, two-bath home in a nice area. The sellers were at the final stages of a foreclosure that they had dragged out as long as they could by declaring bankruptcy.

We felt pressure to close fast, both from the sellers and from the lender. This was almost exactly the amount of money I had told them to expect. If you are going to buy during this stage of the foreclosure, be aware of this possibility and keep yourself emotionally whole.

Our last choice is buying at the actual auction itself. While many experienced investors make a great living buying properties at the actual foreclosure auctions, we tend to avoid buying at this stage for three reasons: 1. It takes all cash to play this game! This means no leverage unless you have a private investor backing you up.

The auction process itself generally favors the selling party. This competition—combined with the natural human fear of losing a great deal—are two potent psychological factors working against you. Check out several auctions and get to know the other regulars. Ask them which times and days tend to have the fewest competitors. Other investors may miss the delayed auction so you might be the only one showing up to bid.

We and our students have profited in the tens of millions of dollars by buying distressed houses directly from the owners before the house is sold at auction. We believe this is the easiest entry point to immediately start making money investing in foreclosures. Know what things can stall a foreclosure process to give you, the investor, more time.

Or, for example, in California, if the lender puts down the wrong information on the Notice of Default, you can force the lender to start all over with the paperwork, which can buy you as much as two to three months of time. Just like champion athletes have to put the effort in on the practice field, wealthy investors have to invest the time and energy to master the rules of the game.

You are about to learn the 12 best foreclosure buying strategies. Whether you are buying properties in foreclosure or in preforeclosure, these strategies will allow you to start making money investing in foreclosures right away. A lease option is when you lease out a property from a seller for a long period of time with an agreed-on option price at which you can buy the property at any point during the lease period.

Rather, we want to share 12 other cutting-edge strategies that have four factors in common. Little or No Money Down You can make all these buying strategies work without putting a ton of your cash into the property deals. After talking with her local bank manager, this student was able to get all the closing costs rolled into the loan, so that she put nothing down.

Some nontraditional funding sources for your deals could care less if your credit has holes in it the size of Texas. By that I mean the seller or person I got the money from never ran a credit check. Minimize Your Risk Making money is important, but keeping the money you make is equally important. All these purchase option foreclosure strategies help you isolate and minimize your risk.

One time, a tenant who had some unsavory friends was living in my unit. Looking back, I still remember how much emotional stress that tenant caused me. Fast-forward to a deal I did using the Purchase Option ideas you are learning.

I have an investment property in Colorado Springs that was vacant for two months. I simply fired the property management company and got someone else to take over and fill the vacancy. It felt like a Monopoly game— as if I were losing a little money in a game rather than the highly 30 Making Big Money Investing in Foreclosures without Cash or Credit personal feeling of having my hard-earned cash at risk on the condo.

Help Sellers Win You will be working with sellers who need your help. When you buy a foreclosure property the right way, you create a win-win transaction that helps sellers effectively deal with tough personal situations. The husband was fairly ill and I remember going back over to the house after we had signed the contract and talking with his wife.

After a few minutes, she asked me to walk with her into the bedroom because her husband wanted to see me. As we walked in and I saw the husband stretched out in the bed, I felt awkward. But then he started to thank me for helping them make the best of a bad situation.

They were about to lose the house when I offered to help them with a better way out. This meant either the investors took the money out of their personal bank accounts or borrowed from a traditional lender. Truth be told, this was a good way to invest and these investors made lots of money.

Also, while these traditional investors made money, in many cases they took on magnitudes of risk—risk they easily could have avoided by using the strategies you are about to learn. Even if you just want to use our ideas to fine-tune your traditional foreclosure investing, this book gives you the tools and techniques to do this. They find it hard to believe that sometimes having money can be detrimental to learning to be the best investor you can be. But with an open mind and the right education, not having money can be a force to push you to be a faster, more creative, and more skilled investor.

The Foundational Foreclosure Buying Strategy If you are just getting started investing, structuring deals with sellers in foreclosure can seem overwhelming as you try to remember the various ways of conducting them.

This buying strategy is the foundational buying strategy for working with homeowners who are in foreclosure. When beginning Mentorship students come through our workshops, they struggle with information overload. It can be compared to a new mechanic who is given a toolbox with an overwhelming number of unfamiliar and specialized tools. Once you get comfortable using those tools, then layer in another tool, then another and another.

If you have too many options at once, you run the risk of freezing up when meeting with a seller. Imagine you were meeting with a motivated seller in the early stages of foreclosure and that seller owns a well-kept house in an area you like. I just want to walk away from the house.

Some investors might go ahead and buy it any way with the intention of holding the house as a long-term rental. While this would be a way to leverage your way into the deal, it comes with three main disadvantages. The cost of the money. Your lender will require that you sign personally on the loan.

That means if anything goes wrong with the house or the housing market in your area, regardless of whose fault it is, your credit and potentially other assets are on the line. And just when you thought it had everything, your lender almost always finds two or three more things. Does it tell you about all this up front? So you spend the last week before closing scrambling to make the deal work. Who needs all that stress? You can do this once you have the specialized knowledge you are about to learn.

I know there is a deal here. Tell me about her motivation to sell. You: She was living with her boyfriend who was helping to make the payment each month. But six months ago they split up. Mentor: Do you remember from the home-study materials about the strategy of buying subject to the existing financing? You: I remember some of it. I just have her deed me the property and make up her back payments, then each month I just send in the payment to her lender.

Is that right? Mentor: Yes. She deeds you the house for a token payment up front. Strange as it seems, for this to be legally binding, you need to pay something. You then clean up the property and start marketing it. You: Can I really do this? It sounds too good to be true. Is this legal?

The answer is yes; this is a perfectly legitimate way to buy property. For years, savvy investors have been using this method to intelligently buy properties and make a lot of money doing it. Still, there are risks you need to be aware of—you must look out for yourself in the deal.

The lender has the right granted in the deed of trust or mortgage securing this loan to call it due in full if the house is sold without getting cashed out. But the due-on-sale clause, which is the biggest reason investors are leery of using this buying strategy, is really a paper tiger. Due-on-Sale Clause Not a Big Problem Just about every loan written for the past 20 to 30 years contains a due-on-sale clause.

According to this clause, if a borrower sells the property without paying off the loan, the lender has the right to accelerate that loan and call it due in full within 30 days. But the due-on-sale clause is more intimidation than substance. Probably not. But if the loan is at 8 percent and the market rate is 15 percent, you can bet your local lender would just love to call the loan due just to force you to refinance the property at a higher interest rate.

The banker figures that even if you refinance the property with a different bank, at least you would have to cash out its old loan, giving it more money to lend at a higher interest rate. So banks are not in business to accelerate loans unless either you f launt it i. They simply want people to pay them on time and take care of the house. When you understand this, you recognize how much power you have when negotiating with lenders to find creative solutions to help sellers solve their problems.

The key is to communicate with the lender about what you need to make this work for its best interest, which is to have the loan brought current. Many times, I negotiate a payment plan known as a forbearance agreement with the lender right there on the phone. Negotiating a Forbearance Agreement While talking with the lender before buying the property subject to the existing financing, work out a payment plan with the lender that helps you spread out the amount of money owed in back payments over time, or even better, adds the back payments onto the principal balance of the loan.

This payment plan or workout is known as a forbearance agreement. You can hold a threeway phone conversation with the lender or just get written permission from the seller to allow the lender to discuss the matter with you. How soon you can start making the current and future monthly payments 2.

How you propose to pay the past-due amount the payments in arrears 40 Making Big Money Investing in Foreclosures without Cash or Credit In general, most lenders are more concerned with the monthly payments starting up and with the stability of these future payments than with when the past due amount will be paid.

As a creative investor, you have lots of options. Pay the arrears over time 3, 6, 12, or 18 months while making the monthly payment from here on. Get a moratorium on any payments for several months explaining to the lender why the seller needs this period of time and why things will be securely different at that future date.

Add the arrears to the principal balance and start immediately to make the monthly payments. This is sometimes called recasting the loan—adding the back payments to the loan and restarting it. Make up the back payments in one payment with monthly payments to begin in 30 days. Make sure you get the lender to acknowledge in writing any agreement for a workout plan.

Never rely on an oral agreement. The seller was one payment behind on his mortgage on a four-unit building. How will the seller get a new loan if this loan stays in her name and appears on her credit record? This can be a potential sticking point with a seller. But most lenders will credit the seller with having made the full payment as long as you can show them proof the loan has been paid for 12 plus months e.

In this case, it may have some effect on the seller getting a new loan. Their need to solve this problem is a hundredfold more important to them than getting another loan down the road. Who gets the tax write-offs? The person whose name is on the title.

That is you the investor. Or if you resold the property on either a land contract or wraparound mortgage, then your buyer would get the write-offs. This clause shall survive the closing of title. But invariably they forget to factor in the real costs involved with a rehab project—financially, timewise, and emotionally.

However, many find that once they start doing the work, hidden repairs eat into their profits. The time cost. This is especially important if you do some or all of the work yourself, rather than hiring outside contractors. Make sure the profit in the deal is worth all the time and energy you put in. The emotional cost. This is the cost most investors fail to calculate. A Smarter Way to Fund a Rehab If you do plan to buy foreclosures, rehab and then sell them at retail prices, here is a better way to structure your deals.

If you use this strategy, you will limit your risks and lower the amount of upfront money you put into the deal. Imagine you find a seller who has a dumpy house in a nice part of town. The seller wins because he not only stops the foreclosure, but he also receives money within 90 to days. Notice that we switched to 90 to days instead of three to four months.

The change in terms makes the seller feel like he gets his cash faster—in days not months. We call this strategy of structuring the deal a short-term subject to rehab. See Figure 3. This saves you many hours of getting your loan application and paperwork together and dramatically lowers your risk in this deal. Most investors look only for deals that fit into their limited view of how they buy and sell properties.

For example, if an investor buys foreclosures that need fixing up and then resells these properties to a retail buyer, he develops tunnel vision in his search for this type of deal. This tunnel vision can cause him to completely miss out on the chance to buy a foreclosure subject to existing financing or turning the property into a long-term rental. Imagine you were just starting out in the fishing industry. You bought a boat and spent your days putting out your nets and hauling in tuna.

You think. So that day, you put the yellowfish you catch into a separate cooler. When you get back to shore, you talk with four local restaurant owners who agree to buy your catch. You can do exactly the same thing in your foreclosure investing. This third party, often another investor, pays you a cash fee to assign your interest under that contract over to him.

He then buys the house from the seller. Your plan calls for you to hold on to these houses for ten years or more. But you keep coming across sellers in foreclosure who just want to dump their houses. But, still, you paid for the marketing that got these sellers to call you and you invested your time to meet with them, so you decide to f lip these deals. You negotiate the best deals you can, then find other investors to buy the deals from you for a cash fee.

He found a seller who owned a fourplex that needed some cosmetic 48 Making Big Money Investing in Foreclosures without Cash or Credit fixing. The seller, a referral from another seller Byron had worked with, was five payments behind and headed for foreclosure. The investor who bought the deal got a great price and terms on a solid rental property in an area where he was already building his portfolio. It was a win-win-win transaction. See Chapter 7 for details on how to f lip properties.

All totaled, I spent less than ten hours of my time on the deal. Considering I was still working as an auto mechanic for a lot less money at the time I did the deal, that money helped me change my self-image. But there is a way—called a short sale—that lets you to take many of these no-equity deals and turn a fair, fast, and healthy profit on them. First, a lender may lose money when it forecloses on a house.

Finally, lenders face strict federal regulations regarding the ratio of bad loans they have on their books and the amount of money that must be kept in liquid reserves to balance this. Then his wife got laid off from her job and they were losing the house to foreclosure. Both lenders made their acceptance of her short sale offer contingent on Cheryl getting them their money within 21 days. She immediately got on the phone to three private lenders she worked with and borrowed the money to buy the property and make the needed repairs.

Best Situations for Short Sales Here is a list of the most common situations in which short sales are appropriate. Note: The loan s must be in default or the lender s will not accept a short sale. Situations in which a large second mortgage is at risk because the first mortgage holder is foreclosing, allowing you to negotiate a short sale on the second mortgage.

Six Steps to Close a Short Sale Step One: Lock Up the Propert y under Contract Your first step in any short sale indeed, your first step in any real estate deal is to identify and meet with a motivated seller to lock up the property under contract before you spend time working with a lender to accept a short sale.

If you need the short sale to make the deal profitable for you, make sure you insert a clause in your purchase contract with the seller specifically stating your agreement is contingent on the lender accepting a short sale. That way, you can build in enough profit in the deal to make it worth your time.

The Authorization to Release Information see Figure 3. Be sure to reach someone who has the expertise and authority to help you. Lender: Yes, it is. Investor: Great, then this is the department that handles short sales? This authorization or a copy of it may be sent via facsimile transmission and be fully valid and binding.

This authorization is a continuing authorization for said persons or company to receive information about my our loan including duplicates of any notices sent to me us regarding my our loan. In addition I we hereby authorize you to discuss any aspect of our loan with Authorized Party. May I help you? Investor: I hope so. My name is Peter. Who am I talking with? I was hoping you could help me with a small matter. What needs to happen for your company to accept a short sale on a defaulted loan?

Each 54 Making Big Money Investing in Foreclosures without Cash or Credit lender requires a slightly different process before accepting a short sale. Still others will let you negotiate the short sale right over the telephone, provided you have faxed your Authorization to Release Information. In fact, many lenders will fax or mail you a written outline of their specific guidelines for a short sale if you ask them.

Six Tips When Working with Lenders on a Short Sale While every lender follows different procedures, these powerful tips will help you successfully negotiate a short sale: 1. You will always be in a stronger negotiating position if you can reference the exact history of your conversations with a lender. Ask if that person is able to accept the short sale or if someone else will have to make that decision.

Lenders in this department are used to working with borrowers who hide and ignore their correspondence. You can build a really strong relationship from which to negotiate a winning deal by consistently communicating with the lenders. Gently remind lenders of their real costs to foreclose on properties. The best way is by asking questions to draw out what hassles and expenses they face if they have to foreclose, take the property back, and resell it.

See the sample script later in this chapter. Step Four: Send In Your Short-Sale Packet If you need to send something in writing to the lender as part of your negotiation of the short sale, take the time to turn the packet into a tool to help you get a great deal. Also emphasize how your offer will provide a quick solution, allowing the lender to get cashed out in 30 days or faster if possible. Finally, emphasize the real costs to the lender of having to go through the cumbersome and expensive foreclosure process.

Purchase agreement. This is the contract that says the seller agrees to sell you the property subject to the lender accepting a short sale on the amount owed. Be sure that this agreement specifically states the seller will receive no money from the sale. Lenders will not accept a short sale if the seller is making any money. List of repairs needed and high-grade bids. This list of repairs should be as extensive as possible and include the highest authentic bids you can get to have repair work done.

Total this list and bring the message home to the lender that the property is in rough shape. Ugly photos. Take the ugliest photos of the property you can get and include enlarged copies of these photos. If the house is in great shape, which is rare with foreclosures but it does happen, skip the photos and list of repairs.

Credibility factors use only if they will help build your case. If you have good credit or lots of cash, send proof of this to support your ability to perform on your offer should the lender accept. Examples include preapproval letters from other lenders for the short-sale amount, financial statements, and credit reports.

Hardship letter from the seller. You may have to help coach your seller to write an effective letter. Net sheet HUD This is the draft of the settlement statement that shows the lender the exact money to be received from the closing if your short-sale proposal is accepted.

Financial information on seller. The lender often wants to see the real financial condition of the seller. Finally, include your formal short-sale offer to the lender. Be sure to state your offer is available for a limited duration of time and explain why you feel you can only offer this amount of money and still conser vatively make a profit. Fast and sure closing—their most important criterion. No or day escrows; they want to finish the deal in 30 days or less. The house right next to the one they live in had been empty for more than a year.

There had been a big fire and the house was only partially fixed up. After several weeks of trying to find the right people to even make their offer to, my mom and stepdad found the woman who had inherited the property after the old owners had died. This new owner lived quite a distance from the property. Two more months of legwork and my mom finally got the loss mitigation department on the phone. There was one catch: the lender said it would need that money within seven days—which they did!

They rehabbed it and moved into it. Soon after, they decided to sell the old house they owned right next door. Cash only! No contingencies. Lenders will be leery of short-sale offers that have so many weasel clauses, they look like Swiss cheese. One easy way around this is to use a liquidated damages clause to give you a pain-free, covert way to walk from the deal if worst came to worst.

Take the initiative to politely but doggedly follow up on your offer. Once the lender accepts your offer, move to step six. If your offer gets turned down, this is a great chance to negotiate a deal. This allows you to take whatever the lender says as a counteroffer and use that as an entry point to negotiate a lower price. This is just as good as the lender giving you a definite number for your negotiating purposes. Step Six: Close on the House Whether you are going to close on the house yourself or f lip the deal to another investor, the final step is for you to cash the lender out and buy the house.

Make sure you honor your word with the seller and the lender. Nick had been working for a pharmaceutical company until two months ago when he quit to go into investing full-time. At the time, Nick had done five deals and still owned three of the houses. He found a motivated seller who was two months behind on the payments on a beautiful two-story house.

Nick talked with the lenders again and found out that the first and second mortgages were with the same company. After using the ideas from the radio show, Nick got the lender to accept a short sale. Use this powerful strategy when the seller has little or no equity, or even when you want to increase your profits in an ordinary foreclosure deal.

The seller owns a threebedroom house in a working-class neighborhood. When you ask her what she would really like to see happen, she answers that she just wants to walk away from the house with a few thousand dollars and start fresh somewhere else. You negotiate for a while, determining that if she sold it herself and factored in closing costs, real estate commission, back payments, and cosmetic fix-up work, she would probably owe money at the closing. At this point, the seller sighs and says that she just wants to walk away from the whole thing and be done with this nightmare.

We coach you to sign up the deal. You agree to make up the back payments, buy the house, and take over the property subject to the first and second mortgages. Earlier, you learned that this strategy is called a short sale. Get on the phone and call the second mortgage holder. After getting the facts on the table e.

You would have to do much better than that. Investor: Boy, I can sure understand that. What would be the lowest amount you could take to make this acceptable to your bank, knowing that it still needs to be low enough to work for us as investors? This is pure profit for you in the deal. Have we tapped into your greed glands deeply enough to spark you into finding a way to fund this deal?

Sell the house with owner financing, collecting a 10 percent down payment. Get a cash advance on one or more credit cards to fund the deal and then sell the house outright to a retail buyer. Use your own money to fund this deal, knowing the profit will ensure a very high return on investment. Borrow the money from a private lender and pay a fair rate of return on that money with the interest to accrue so you can protect your cash f low.

Are you getting into the spirit here? The key to remember is that if the deal is good enough, you will find the money. Many investors look only for properties with lots of equity. Here is another way to use that technique to make even more money. You just might have a great opportunity to make more money by buying those other liens for pennies on the dollar.

Most were medical bills from a health situation several months back. The student would also agree to satisfy all the other outstanding hospital bills the seller had accumulated. I then recommended the student get written permission from the seller to negotiate the outstanding bill with the hospital.

What other types of liens against the property can you discount? How unsure of collection is the creditor? How likely or unlikely is the creditor of actually getting any money from the debtor? Is there a lot of equity protecting the lien? Or is the lien likely to get completely wiped out in a foreclosure sale? Is it a first mortgage in the most secure position and therefore the hardest to discount or is it in third position after two mortgages?

You get the idea here. The more the debt is at risk, the deeper the discount you should go after. How badly does the creditor need the money? Obviously, a roofer whose cash-f low situation is tight will be more likely to give you a discount than a large mortgage lender. So find out as much as you can about the people who are owed the money. First, you call the roofer to see what you can do: Ring, ring.

Roofer: This is Ralph. What can I do for you? Investor: Oh great. It sounds like I caught you in the middle of something? Roofer: No, I was just organizing things for my next job. Why would you want to do that? Roofer: Yes, I would. How much would you give me for the note? May I ask you a few questions to see if this is even a note that I would want to buy?

Roofer: We tried invoicing the owner for about two months. And I went over to the property to collect the money three times myself. Investor: And that worked [big eyes]? Investor: Really? Tell me about what that was like? I mean, I took three guys off another job to fit in the roof on his house and then he stiffs me. I just took off. Investor: What did you do then to collect? Does it mean he has to pay you off in 30 days or something [big eyes]?

Investor: That makes sense. Investor: Oh, OK. It sounds like the chances of collecting are less than I originally anticipated. If I were willing to buy the lien from you for cash, what would you even do with the money? Roofer: The money would be going back into my business, which had to cover our costs for the roof. I had to pay for the guys and most of the materials. I still kick myself for not getting a larger deposit up front from the guy.

Roofer: Doubtful. How much are you willing to pay me for the lien? Or maybe a little bit more? Investor: Really [scrunchy face]. And away you go. The call probably took you 20 minutes tops. Because the ex-spouse likely never expects to get paid that money anyway. Savvy investors know that the more little liens and private debt a seller owes often means more profit for the investor. They agreed. After having their board review the offer, they accepted.

Why Every Investor Can Be a Cash Buyer Many investors mistakenly believe the only way you can buy with cash is by having perfect credit for borrowing money or by having the liquid cash sitting in a bank for them to tap into.

Source One: The Seller The single best source for you to fund the deal is the seller. We know this might sound strange. Well, yes, but remember the seller has existing financing in place, and in some cases has equity in the house to lend you. And the seller is even more obviously your source of funding when he agrees to take a note for part or all of the money you have agreed to from your purchase of the property. Source Two: Your Buyer Depending on how you plan to sell the property, you can generate immediate cash to fund your deal from a few thousand dollars to hundreds of thousands of dollars.

If you sell the property on a rent-to-own basis, you can typically collect 3 percent to 5 percent of the purchase price as a nonrefundable option payment. If you are selling with owner financing e. And if you structure the deal in which your buyer brings in a new first mortgage, then you can generally get all the money you need to fund a cash purchase of the property from your motivated seller who was in foreclosure.

Imagine you meet a motivated seller who is in foreclosure and about four weeks from losing her house at auction. She owns a fourbedroom, two-and-a-half-bath house in a nice part of town. The seller admits she has been living in denial for the past five months and now finally realizes something has to happen fast.

You resell the property before you close on it with the seller. Best of all, she will never have to look back again. In real estate, you get paid for the specialized knowledge you bring to a deal. Because you can sell the house with owner financing and typically collect 10 percent down, you can often get the seller a chunk of money for his equity and buy the property just subject to the existing financing.

The seller gets all the cash he expected from the deal up front; the buyer gets a house with no bank hassles; you make a healthy profit for being the matchmaker between the two parties. Marcia told me about a deal she made with a motivated seller who called her after seeing a small classified ad she ran.

Source Three: Your Money or Lines of Credit If the amount of money you need is small enough that you can comfortably fund the deal, and if the deal is good enough to warrant putting your own money into the deal, then seize the opportunity. If the answer is no, look for a different source of funding.

Are you experienced enough investing that you feel comfortable putting more of your money or credit on the line to fund the deal? Remember, sometimes having money or available access through your lines of credit to money is a detriment to your creation of wealth. Easy access to money can often make early deals too easy to obtain. If they were harder to fund, you might decide to pass on the deals altogether. You cannot make up for a lack of knowledge and experience with money and not expect to pay a healthy price for learning that lesson.

Here are three sources of cash open to many investors: 1. Credit cards. Cash advances are a fast source of cash. Take the ugliest photos of the property you can get and include enlarged copies of these photos. If the house is in great shape, which is rare with foreclosures but does happen, skip the photos and list of repairs.

Credibility factors use only if they will help build your case. If you have good credit or lots of cash, send proof of this to support your ability to perform on your offer should the lender accept. Examples include preapproval letters from other lenders for the shortsale amount, financial statements, and credit reports. Hardship letter from the seller. You may have to help coach your seller to write an effective letter. Net sheet HUD This is the draft of the settlement state- ment that shows the lender the exact money to be received from the closing if your short-sale proposal is accepted.

Financial information on seller. The lender often wants to see the real financial condition of the seller. Your offer to lender. Finally, include your formal short-sale offer to the lender. Be sure to state your offer is available for a limited time and explain why you feel you can only offer this amount of money and still conservatively make a profit. Three criteria of irresistible short-sale offers. To make your short-sale offer irresistible to the lender, remember to emphasize the following three benefits: 1.

Fast and sure closing. No day or day escrows; they want to finish the deal in 30 days or less. To help understand the short-sale process better, you can download a sample short-sale packet prepared by one of our Mentorship coaches for an actual deal. To take advantage of this special gift from The Mentor Team, see Appendix A for details or go to www. After four phone calls, we finally talked to someone in the loss mitigation department.

There was one catch: the lender needed that money within 15 business days—which we managed to come up with! We got an interest-only loan with no prepayment penalty for six months at about 5. Our exit strategy was to rehab and sell to a retail customer. The rehab money came to us from a Mentor Family member, Soft Money. We gave them 10 percent interest, and they were happy. Cash only! No contingencies. Lenders will be leery of short-sale offers that have so many weasel clauses; they look like Swiss cheese.

One easy way around this is to use a liquidated damages clause to give you a pain-free, covert way to walk from the deal if worst comes to worst. Take the initiative to follow up, politely but doggedly, on your offer. Once the lender accepts your offer, move to step six. If your offer gets turned down, this is a great chance to negotiate a deal. This allows you to take whatever the lender says as a counteroffer and use that as an entry point to negotiate a lower price.

This is just as good as the lender giving you a definite number for your negotiating purposes. Make sure you honor your word with the seller and the lender. One easy way to do this is to use a hard moneylender as a backup. Nick had been working for a pharmaceutical company until two months prior, when he quit to go into real estate investing fulltime. At the time, Nick had done five deals and still owned three of the houses. He found a motivated seller who was two months behind on the payments on a beautiful two-story house.

But after attending the online training on short sales see your Bonus Web Pack in Appendix A at end of this book , he discovered how to get a lender to say yes to a short sale. Nick talked with the lenders again and found out that the first and second mortgages were with the same company. After using the ideas from the training, Nick got the lender to accept a short sale. Use this powerful strategy when the seller has little or no equity or even when you want to increase your profits in an ordinary foreclosure deal.

The seller owns a three-bedroom house in a working-class neighborhood. After talking with her using the Instant Offer System see Chapter 5 , you would discover that she has a gambling problem and is having major financial problems in other areas of her life. When you ask her what she would really like to see happen, she answers that she just wants to walk away from the house with a few thousand dollars and start fresh somewhere else.

At this point, the seller sighs and says that she just wants to walk away from the whole thing and be done with this nightmare. Sign up the deal. Earlier, you learned that this strategy is called a short sale. Get on the phone and call the second mortgage holder. After getting the facts on the table i. You would have to do much better than that. Investor: Boy, I can sure understand that. What would be the lowest amount you could take to make this acceptable to your bank, knowing that it still needs to be low enough to work for us as investors?

This is pure profit for you in the deal. Have we tapped into your greed glands deeply enough to spark you into finding a way to fund this deal? Sell the house with owner financing, collecting a 10 percent 2. Get a cash advance on one or more credit cards to fund the deal and then sell the house outright to a retail buyer. Use your own money to fund this deal, knowing the profit will ensure a very high return on investment.

Borrow the money from a private lender and pay a fair rate of return on that money with the interest to accrue so you can protect your cash flow. Partner with another investor who will put up the money and split the profits with you. Are you getting into the spirit here? The key to remember is that if the deal is good enough, you will find the money. Many investors look only for properties with lots of equity.

Here is another way to use that technique to make even more money. You just might have a great opportunity to make more money by buying those other liens for pennies on the dollar. Most of the debt was medical bills from a health situation several months back. The student would also agree to satisfy all the other outstanding hospital bills the seller had accumulated.

We then recommended the student get written permission from the seller to negotiate the outstanding bill with the hospital. What other types of liens against the property can you discount? How unsure of collection is the creditor? How likely or unlikely is the creditor actually to get any money from the debtor? Is a lot of equity protecting the lien? Or is the lien likely to get completely wiped out in a foreclosure sale?

Is it a first mortgage in the most secure position and therefore the hardest to discount or is it in third position after two other mortgages? You get the idea here. The more the debt is at risk, the deeper the discount you should go after. How badly does the creditor need the money? Obviously, a roofer whose cash-flow situation is tight will be more likely to give you a discount than a large mortgage lender.

So find out as much as you can about the people who are owed the money. If the contractor did file a lien, it would not be enforceable in court. First, you call the roofer to see what you can do: Ring, ring. Roofer: Hello. Investor: Hi, this is Ian, is Ralph there? Roofer: This is Ralph. What can I do for you? Investor: Oh great.

It sounds like I caught you in the middle of something? Why would you want to do that? Roofer: Yes, I would. How much would you give me for the note? May I ask you a few questions to see if this is even a note that I would want to buy? Roofer: We tried invoicing the owner for about two months. And I went over to the property to collect the money three times myself. Investor: And that worked [big eyes]?

Investor: Really? Tell me about what that was like? I mean, I took three guys off another job to fit in the roof on his house, and then he stiffs me. I just took off. Investor: What did you do then to collect? Does it mean he has to pay you off in 30 days or something [big eyes]? Investor: That makes sense.

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See this article for more about them. I believe if they can do it you can, too! Do you need to have a lot of money to get started; a degree in buying foreclosures, or a license to buy and sell them? Please know I may earn a small commission if you purchase this book through this link! Thanks This guide by Peter Conti suggests that you do not. That even you, with no cash and no credit to invest, can make big money in the foreclosure game. This needs to be factored into your buying price. If you plan to hold the property over time, make sure the property can afford to pay for itself.

One way intelligent investors build a margin of safety into their real estate deals is by making sure they have a cash low cushion from the start. That way, if a shift occurs in the rental market, you are insulated and can painlessly ride out the market cycle to sunnier days.

Does it make sense that, as an investor, you are going to need to create proitable deals in any market? In down markets, you need to be more discerning about which of the many deals you take. In a strong market, you need to work harder to ind motivated sellers who want to work with you. The key is to adjust your investing efforts depending on the type of market you are facing.

They are totally dependent on outside market conditions to produce a proit. But what if the market cools off? When they buy a property, they do so knowing they are guaranteed to make a proit because of the way they purchased it. Either they have received great terms that generate strong cash low, or they have negotiated a discounted cash price that ensures a proit when they resell.

The key distinction is that speculators gamble on outside forces to create a proit for themselves, while investors negotiate the price or terms they need to build into their proit from day one—no matter what the market does in the short run. But what they told you was only half-true and fully misleading. They passed on their beliefs without even understanding themselves how costly these myths could be for you. Where will you get the money to do it? Where is this myth written in stone?

And if it were really true, how did people like Warren Buffett and Bill Gates start with nothing and build net worths of billions of dollars? In the home where I grew up, my dad had to work really hard to provide for his wife and seven kids. That incident gave me the courage to ind a way to make investing work for me. I was looking for a way to succeed in life without having to work for a big corporation for 40 years.

I was scrimping by on my small savings because I wanted to prove to my parents that I really could make it on my own. It takes specialized knowledge of a proitable niche that you apply with disciplined and passionate efforts over time, taking care to learn and to improve along the way. You can potentially 10 Making Big Money Investing in Foreclosures tap into thousands of dollars in proits created through buying properties using other sources of funding. If I can do this, you can too. The seller agreed to act as my bank and carry back all the inancing I needed to buy that property after a small down payment.

Was the seller unsophisticated? Was I taking advantage of him? He simply regarded this as a win-win situation. And sellers are only one of several funding sources for your foreclosure deals. Far from it!

Investing in foreclosures is like holding the core of your being up to a mirror. If you are a good person, what relects back is that you help people and get paid well for doing it. I remember Fred and Evelyn who wanted to sell their house. I recall sitting in their gorgeous home on a great lot.

So Fred and Evelyn called me and we sat down at their kitchen table. Fred was doing all of the talking. It took a long time, but he inally felt comfortable enough with me to share their concerns about selling the house. They had received offers on the property, but all of the offers felt cold to them.

No one had ever taken the time to sit down and really understand them. Sadly, a short time before this, their son had drowned while playing in the creek toward the back of their yard. It was important for them to share that and have someone show interest. Fred and especially Evelyn were able to move on with their lives as a result of our conversation around that kitchen table.

It emphasizes that when you invest in foreclosures, you ind yourself talking with the sellers at a critical time in their lives. So take the time to listen. We watch them passing on what might be their best chance to create security and freedom for themselves and their families while they help people like Fred and Evelyn. We know this sounds too good to be true. But success takes a great deal of study, disciplined action, and willingness to set aside many deeply rooted beliefs you have about wealth.

If you are willing to add these three ingredients to the recipes explained in this book, we guarantee you can and will make big money investing in foreclosures. Anyone with the right attitude, the specialized knowledge, and the willingness to practice and learn along the way can make money investing in foreclosures. This chapter deines foreclosure, explains the concepts involved when buying foreclosures, and walks you through several sample deals.

It includes examples of how other investors have made healthy proits structuring deals with sellers of foreclosure and preforeclosure properties. As you read through these stories, do your best to get a feel for how these deals low and the common elements among them. Chapter 3 explains how to structure each type of these deals.

The promissory note is the IOU or acknowledgment of debt. It says the borrower owes the bank a speciic amount of money and lists the exact terms of the loan and the required repayment. Imagine you were an oficer at the bank. However, the deed of trust or mortgage is not an IOU or a promissory note; it is a security agreement. It states that the borrower will repay the loan and live up to the terms and conditions of the loan, or the lender can force the sale of the property to raise the money to pay for as much of the outstanding loan as possible.

Think about it this way. The loan process is like a teenager asking his parents for permission to borrow the car Saturday night. I want to take Sally out to the movies. Finally, the parents give in and grant permission for the teenager to borrow the car, but they lay down certain ground rules the teenager must follow: He must be home by pm; he must tell them exactly where he is going, with whom, and when.

Setting out the rules for lending the car is what a banker does in a promissory note—including speciic terms and conditions of the loan and how and when it will be repaid. The language in the deed of trust or mortgage says, for example, that the borrower agrees to keep the property properly insured, agrees to properly maintain the property, and, of course, agrees to make timely payments on the promissory note. He simply took over making the payments to the lender on the loan the sellers already had in place.

Four years later, he still owns this property. Deal Two Michael, one of our students in New Orleans, found a motivated seller with a junker of a house. To fund the deal, Sally borrowed the money from her mother and agreed to pay it back at 9 percent interest when she resold the property.

The seller was about to lose his Colorado property to foreclosure when Gina helped him ind a way out. It was a win-win-win deal for everyone. Thrilled with the outcome, the seller sent Maggie a note that read: Thank you so 20 Making Big Money Investing in Foreclosures very much. Before my mother died, she asked me not to lose her property. So this has been very painful for me.

Thank you for helping me. Add to this their possible feelings of shame, failure, and embarrassment, and you start to get the picture. They may also feel depressed and on the defensive. Some may simply be in denial, waiting for lottery winnings or a knight in shining armor to save the day. So when you help sellers get out of tough places, you help them move on. You are providing a great service. This may not be true. In many states, the lender can get a deiciency judgment from the court.

This means the The Big Picture of Investing in Foreclosures 21 borrower homeowner still owes the lender any money that the lender lost from the whole process. Many times, this pushes the homeowner to declare bankruptcy to escape this debt burden. However, rarely does the borrower get anything for his or her equity in a foreclosure sale because the house is usually sold well below market price. One big distinction is whether your state uses a deed of trust to secure real estate loans or a mortgage.

While some states use both, all states use one or the other of these documents in the majority of loans. So ind out if your state is a deed-of-trust state or a mortgage state by asking a local title company or real estate attorney which document is commonly used. You can also log on to your Bonus Web Pack, which includes a chart showing which type of state you are investing in.

For more information, see Appendix A. Trustor: The borrower 2. Beneiciary: The lender When people borrow money in a deed-of-trust state, they sign a document deed of trust that gives legal title to the property to a trustee for the beneit of the lender beneiciary. Now, the borrower really owns the property and has all kinds of rights to enjoy the property up to a point.

The trustee must follow a speciic set of rules established in each state. The inal step is the sale of the property by auction run by the trustee for the beneit of the lender beneiciary. A mortgage, while used for essentially the same purpose, has some important differences. First, a mortgage is only a two-party agreement between the mortgagor borrower and mortgagee lender. When a mortgagor the person who borrowed the money defaults on the terms and conditions of the mortgage the most important of which is to make timely payments to the lender as spelled out in the promissory note , the lender mortgagee proceeds with a judicial foreclosure on the property.

Remember, each state has its own way of doing things, and you will need to research and learn the legal ropes in your area. It applies in states that use deeds of trust. Step One: Borrower is Delinquent— Preforeclosure Stage The borrower misses a payment on his or her loan and, after the grace period, he or she falls delinquent on the loan.

Because foreclosures are costly to lenders who prefer to collect payments rather than take back houses, most lenders will work with a homeowner for a period of 60 days to 90 days before they go to Step Two of the foreclosure process. Step Two: Lender Files the Default— Notice of Default Stage At a certain point, the lender will no longer work with the borrower and will start the oficial legal process of foreclosing on the property.

In some states, the name of this document is different, but its purpose and function are the same. See Appendix A for details. During this stage, the borrower may reinstate the loan. This means the borrower can make up the back payments and late fees, bringing the loan back into good standing.

If the borrower does reinstate the loan, then the foreclosure stops. In Step Three of the foreclosure process, the lender records a notice of sale and advertises the pending foreclosure sale in a general circulation newspaper for three to six weeks. In some states, once the notice of sale or the comparable document is recorded, the borrower can no longer reinstate the loan but instead must pay off the outstanding balance.

In other states, such as California, the borrower has up to ive business days before the sale date to reinstate the loan. See Appendix A for more details. The trustee auctions the property off to the highest bidder, who must pay in cash or certiied funds. At this auction, the lender opens bidding with the amount of money owed including late fees and other foreclosure costs , and if no one bids higher than that amount, the bank keeps the property.

If someone does bid higher, that person has a set The Big Picture of Investing in Foreclosures 25 amount of time usually a few hours or sometimes immediately to produce the certiied funds to purchase the property. Step Five: Buyer Waits for Redemption Period to Pass— Redemption Period Not all states have a redemption period, but in those that do, the redemption period is the time after the foreclosure auction during which the borrower can pay the full amount of what was owed the full balance of the loan including all fees and other foreclosure costs to the trustee and get the property back.

During this period, the homeowner usually lives in the house for free while determining where to move next. Note: In the rare case of the lender or investor showing a court that the homeowner is damaging the house and radically diminishing its value, that person may be able to get court permission to remove the homeowner.

In most deed-of-trust states, the homeowner has no redemption rights, but this can vary. In some states, such as Colorado, the homeowner has a redemption period of 75 days. Almost all mortgage states have redemption periods. This step is the same in both a judicial and a nonjudicial foreclosure.

The lender prefers not to foreclose but to have the borrower make timely payments. Step Two: Lender Files a Lawsuit— Judicial Foreclosure Begins The lender iles an oficial document with the courts a Complaint that initiates the lawsuit to foreclose on the property. The lender also needs to give outside parties notice that the lawsuit is occurring by recording a lis pendens with the county recorder.

The borrower may answer the Complaint, which keeps the lender from getting a default judgment and slows down the process. One of the biggest challenges you face when investing in foreclosures is the increasing time pressure you must work under.

This sounds more complicated than it is. In reality, iling an answer is quick and easy, and it will delay the foreclosure process by up to a month. If the court rules in the favor of the lender, it issues a judgment and sets a sale date. In most states, the previous owner has the right to redeem buy back the property within a set period, sometimes as long as 12 months.

Step Five: Buying the House Back after the Sale— Redemption Period The main difference in the redemption period in a judicial foreclosure is that almost all mortgage states have a redemption period. Also, the redemption period is typically longer in mortgage states than in deed-of-trust states—up to 12 months in some states. Imagine a case in which a house is auctioned and no one outbids the lender, but you know the house is worth 28 Making Big Money Investing in Foreclosures signiicantly more.

You connect with the owner and pay that person to assign his or her redemption rights to you. Then you use the redemption period to raise funds to pay the money owed to the lender including the full loan balance, all costs, penalties, and accrued interest and buy the house back. Sometimes the best deals can be made after the game appears to be over!

What happens to the homeowner after the foreclosure auction? It depends. If the borrower has any redemption rights usually the case if the lender used a judicial foreclosure , then the new owner of the property must typically wait until the entire redemption period is over before getting the homeowner out of the property.

If the property is rented, the new owner will require the tenants pay rent. Unless the trustee made a serious mistake in the foreclosure process, the judge almost always sides with the new owner. Many investors struggle with the idea of evicting people from their home, especially in a foreclosure situation. Often, we pay the homeowner to move early rather than waiting out the process. Be sure to put your agreement in writing and make sure you have possession of the house and the keys before you pay anything to the occupant.

While there are advantages to buying in each stage, our preference is to buy in the irst one— preforeclosure—for three reasons: 1. You have much less competition. This gives you the chance to negotiate a better deal. Remember, once a foreclosure oficially starts, every investor in town knows about it and will be mailing, calling, or visiting the homeowner.

You can get into investing with very little money. When the foreclosure process is in the early stages, the homeowner tends to owe less money in back payments. The seller gets a fast out and saves his or her credit, and you buy another investment property that often has a positive cash low from day one plus a chunk of equity. You also get to leverage your way into the deal without taking on the liability of personally guaranteeing any debt.

You have plenty of time to ind a solution. In many states, even after the foreclosure has technically started, you can still make up the back payments and reinstate the loan. You bring the loan up-to-date and make payments every month as the seller did before getting behind. The major beneit to buying this way is that you can still use the existing inancing as a way to leverage yourself into the deal. Once a foreclosure auction takes place in which no one bids more than the bank, the property goes back to the bank and becomes a real estate owned REO property.

It gets sold as quickly as possible by the lender. Remember, that lender is in the lending business, not in the housing business. Therefore, you can often get hefty discounts on these properties. Also, once a property has been sold at auction, in many states, the seller still has the right to redeem the loan and buy back the property. This can be a highly proitable way to buy. Ultimately, the biggest beneit of buying after the auction is that most investors think the game is over so you tend to have less competition.

Also, the time crunch is less severe. This means you have more time to conduct your due diligence and have the property professionally inspected. Your fourth-best choice is buying during the inal days up to the actual sale date. The beneit of buying closer to the sale date is that many owners who have been in denial inally realize they do need to act. If you plan to buy at this stage, make sure you fully understand how to use the short sale technique described in Chapter 3.

It was a three-bedroom, two-bath home in a nice area. The sellers were at the inal stages of a foreclosure that they had dragged out as long as they could by declaring bankruptcy. He felt pressure to close fast, both from the sellers and from the lender. This was almost exactly the amount of money John had told them to expect.

The next week, he got two messages from the sellers yelling at him at how unhappy they were with the money they received and how they were treated unfairly. While many experienced investors make great livings by buying properties at the actual foreclosure auctions, we tend to avoid purchasing at this stage for three reasons: 1. It takes all cash to play this game! This means no leverage unless you have a private investor backing you up.

The auction process itself generally favors the selling party. This competition—combined with the natural human fear of losing a great deal—are two potent psychological factors working against you. How can you be the only investor at the auction? Observe several auctions and get to know the regulars.

Ask them which times and days tend to have the fewest competitors. Other investors may miss the delayed auction so you might be the only one showing up to bid. The Big Picture of Investing in Foreclosures 33 Those of us in the Mentor Family have proited in the tens of millions of dollars by buying distressed houses directly from the owners before the house is sold at auction.

We believe this is the easiest entry point to start making money immediately by investing in foreclosures. Know what can stall a foreclosure process to give you, the investor, more time. Or, for example in California, if the lender writes down the wrong information on the notice of default, you can force the lender to start all over with the paperwork, which can buy you as much as two to three months. Just as champion athletes have to put the effort in on the practice ield, wealthy investors have to invest the time and energy to master the rules of the game.

You are about to learn the 12 best foreclosure buying strategies. Whether you are buying properties in foreclosure or in preforeclosure, these strategies will allow you to start making money right away. A lease option is when you lease out a property from a seller for a long period of time with an agreed-on option price at which you can buy the property at any point during the lease period. Rather, we want to share 12 other cutting-edge strategies, which have four factors in common.

Little or No Money Down You can make all these buying strategies work without putting a ton of your cash into the deals. After talking with her local bank manager, this student was able to get all the closing costs rolled into the loan, so she put nothing down. By that, I mean the seller or person I got the money from never ran a credit check. Minimize Your Risk Making money is important, but keeping the money you make is equally important.

All of the foreclosure strategies in our system help you treat people right while you also isolate and minimize your risk. A tenant who had some unsavory friends was living in my unit. Looking back, I still remember how much emotional stress that tenant caused me. Fast-forward to a deal I did using the system you are learning. I have an investment property in Colorado Springs that was vacant for two months.

I simply ired the property management company and found someone else to take over and ill the vacancy. It felt like a Monopoly game—as if I were losing a little money in a game rather than the highly personal feeling of having my hard-earned cash at risk on the condo. Help Sellers Win You will be working with sellers who need your help. When you buy a foreclosure property the right way, you create a win-win transaction that helps sellers effectively deal with tough personal situations.

The husband was fairly ill, and I remember going back to the house after we had signed the contract and talking with his wife. After a few minutes, she asked me into the bedroom because her husband wanted to see me. As we walked in and I saw the husband stretched out in the bed, I felt awkward. But then he started to thank me for helping them make the best of a bad situation. They were about to lose the house when I offered to help them with a better way out.

Traditionally, most investors buying foreclosures seek houses they can get good prices on either directly with the owner, through a real estate agent, at an auction, or directly from the bank for an all-cash closing. This means either the investors take the money out of their personal bank accounts or borrow from a traditional lender.

Truth be told, this is a good way to invest, and these investors make lots of money. Also, while these traditional investors make money, in many cases they take on magnitudes of risk—risk they easily could avoid by using the strategies you are about to learn. Even if you simply want to use our ideas to ine-tune your traditional foreclosure investing, this book gives you the tools and techniques to do this.

They ind it hard to believe that sometimes having money can be detrimental to learning to be the best investor you can be. But with an open mind and the right education, not having money can push you to be a faster, more creative, and more skilled investor. When beginner Mentorship students come through our workshops, they struggle with information overload. It can be compared to a new mechanic who is given a toolbox with an overwhelming number of unfamiliar and specialized tools.

Once you get comfortable using those tools, then layer in another tool, then another, and another. Lock onto one or two buying strategies that you can put to work making you money, then add in other layers of strategies later. If you have too many options at once, you run the risk of freezing up when meeting with a seller. Imagine you are meeting with a motivated seller in the early stages of foreclosure and that seller owns a well-kept house in an area you like.

I just want to walk away from the house. Some investors might go ahead and buy it anyway with the intention of holding the house as a long-term rental. While this would be a way to leverage your way into the deal, it comes with the following three main disadvantages: 1.

The cost of the money. Your lender will require that you sign personally on the loan. That means if anything goes wrong with the house or the housing market in your area, regardless of whose fault it is, your credit and potentially other assets are on the line. The lender will want to review credit checks, long loan applications, bank statements, and tax returns.

And just when you thought it had everything, your lender almost always inds two or three more things. Are you told about all this up front? So you spend the last week before closing scrambling to make the deal work. Who needs all that stress? You can do this once you have the specialized knowledge you are about to learn.

I know there is a deal here. Tell me about her motivation to sell. But six months ago they split up. You: I remember some of it. I just have her deed me the property and make up her back payments, then each month I just send in the payment to her lender. Is that right?

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How To BUY FORECLOSURES WITH NO MONEY

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