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THE REAL ESTATE NEWSLETTER FOR TODAY’S HOMEOWNER

Buying Distressed Properties
“Opportunity in the Middle of a Down Market”

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Buying Distressed Properties
October 2007

Happy Autumn Everyone -
In the recent September California Real Estate magazine, I found the following article, I feel is worth sharing with all of you.

Several have asked about real estate buying opportunity in the midst of this "down" market, and this article provides beneficial tips on buying distressed properties.

If you have further questions, after reading the article, please do not hesitate to call or contact me.

Myrl Jeffcoat
(916) 635-0420
email: Myrl

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Buying Distressed Properties

by: Elyse-Umlauf-Garneau
California Association of Realtors

Every cloud has a silver lining, and the rise in California home foreclosures is no exception.  That's if you're an investor hunting for good deals.

Investing in foreclosures is no low-risk venture.  You often need to act quickly, have ready cash to buy, and may need to earmark money for repairs to make properties sellable.

Here are some basics on buying distressed homes.

  • Identify properties:  Right now, choices are abundant.  For instance, in mid-July, a search at foreclosure.com for foreclosure properties in San Diego County yeilded 28,301 hits.  One way to locate homes is to register with foreclosure information services such as foreclosure.com or realtytrac.com.
    Options to buy include:



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  • Short sales:  When borrowers can't keep current with mortgage payments, some lenders agree to allow the sale of the property for less than the loan balance.  Frequently, you can find such deals through real estate professionals representing troubled homeowners.

  • Auctions: Auctions typically offer the best buys, but the risk to you is greater.  You must research liens against the property and decide on your maximum bid price.  You're also required to have cash on hand; remember, you're bidding on homes you haven't inspected and competition can be stiff.

  • REOs:  These are properties that have been taken back by banks.  You can contact banks' REO or asset management departments to locate properties.  Such homes are frequently listed in the multiple listing services, so REALTORS® can assist you with purchase.  Unlike at auctions, you'll be able to inspect properties and banks may have made repairs to a home.

Before You Leap

Take seminars, visit Web sites, and read books before investing.

Do proper research.  Check neighborhood comparable prices so you don't overpay.

You're inheriting previous owners' problems, so investigate other costs, such as liens and unpaid taxes that you could be responsible for.

Consult appropriate experts, such as lawyers, certified public accountants, and real estate professionals.  REALTORS® can often locate and execute short sales, find REOs, and help you evaluate market conditions.


--Elyse Umlauf-Garneau is a freelance real estate writer

 

 



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 More Information

Resources:
 
  • Foreclosure Investing for Dummies 
  • The Pre-Foreclosure Property Investor's Kit: How to Make Money Buying Distressed Real Estate--Before the Public Auction.

FORECLOSURE SITES

 

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If you are currently considering selling or marketing a home, please feel free to call or contact me. I can provide a free, no-obligation Comparative Market Analysis of your property. . .Or if you are thinking of buying a home, I would be pleased to be given the opportunity to sit and explore with you the opportunities that await homebuyers at the present time.

Service is always
a priority

Myrl Jeffcoat

Local Realtor since 1981

Phone: 916.635.0420

E-Mail Myrl

Sacramento - El Dorado -  Placer Counties

License# 00827565

Date: October 2007