First off, you should watch some late night infomercials on TV, and possibly order some real estate tapes from Carlton Sheets. This will provide you with a positive upbeat attitude and a sense of false confidence that is essential in order to go bankrupt. You should believe that after listening to some tapes, you can compete with people that have done this 7 days a week for years.
For your first investment, buy in a city you know little to nothing about and avoid using a buyer's agent who does know the city. Go directly to the seller's agent. The best way to make a truly horrible decision is to avoid any outside advice. The best part of this is that avoiding a buyers agent usually doesn't save you any money since the selling agent simply makes more when you deal with them directly.
Look for a discount or a distressed property over a good long term investment. Late night infomercials and Carlton Sheets talk a lot about this. One thing about distressed properties with desperate sellers is that they frequently are in crappy areas with low appreciation rates. Buying a property at under market rate in an area with low appreciation potential versus a property in a good area is the kind of short sighted thinking that will really help you reach the goal of bankruptcy and foreclosure.
When you talk to people including your realtor, try to spend time talking about all the crap you learned from your book or light night infomercial. The more you listen to other people, the more you might get different perspectives and the higher chance you might learn new things. This could really hurt your chances of going bankrupt so avoid listening to anyone. Remember you know everything even if you only got interested in real estate last week.
Be positive to the point of stupidity. Alot of investors I know always think about how their situation would be affected by a 10 or 20 percent drop in the market before making a purchase. You should avoid this kind of thinking. You need to be blinded by greed. You should only fantasize about how you are going to double your money.
When calculating your monthly cashflow, assume that you will have 100% occupancy all the time and no maintenance cost. While you are at assume that its going to rain money tomorrow.
Also, be stubborn when renting your properties. Decide upon a number say $900 a month and refuse to budge. Come up with some bizarre logic about how the property deserves $900 a month. Lose months of rent having the property sit vacant instead of going down $50 on the rent. Instead of responding to the market make statements like "Well the markets wrong then".
As you move closer to foreclosure, don't alter your spending habits. Don't move into a smaller house or cut spending. Act like nothing is wrong.
Rember to overextend, overextend, overextend. Are you approved to buy one house. Why not buy 5, heck why not 20. Instead of building up a portfolio of properties over time, gaining experience along the way, just buy alot of properties next Tuesday.
Alot of people are getting into the foreclosure game. Their is no reason you should be left behind. Throwing caution to the wind and filling your eyes with greed and you should find yourself walking down the golden path to foreclosure.
This is not a definitive guide to foreclosure. Alot of people end up in foreclosure due to many things. For instance unforeseen events like unpreventable family illness, divorce or job loss. This is simply a guide to what I call elective foreclosure.
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Frequently Asked Questions
Foreclosure no problem on home loan in 2006, big problem to refinance today - Why?
By: AtWitzEnd | 10-09-2008
In March 2009 I will have a bankruptcy removed from my credit report. In 2004 my home was foreclosed. I have worked on my credit and my score is in upwards of 700. In December 2006 I purchased a home and the bankruptcy or the foreclosure did not have any effect. I got a great deal on my home and use the bi-weekly auto draft for mortgage payments. My wife has become disabled and we have had to use credit cards due to the loss of her income and the increase in gas, food, medical expenses, etc. Do I have a chance at getting either a home refinance, equity or debt consolidation to pay off the credit cards? We are not behind on the bills, but we have had to use our savings as well and there isn't any money for any closing costs. Any good advice?
What happens when your 2nd mortgage has been charged off?
By: worriedwoman | 05-09-2008
I just checked my credit report today and my second mortgage shows as being charged off? What does this mean? Will i loose my home? Can i still make payments to the original mortgage company?
I set up a forbearance agreement for our home 3 ...
By: tim9020 | 05-09-2008
I set up a forbearance agreement for our home 3 month term,in the process my wife left,never able to raise the down payment,came home and real estate said house was sold on courthouse back to bank,I was never notified or served of the sale date,I am in California.Do they have to notify you in writing sale date or can they just run the sale thru.I gave them both contact numbers home and cell and not home during day but never left message.Thanks
Filing Ch. 7 & Foreclosure
By: Sandra | 29-08-2008
I recently filed Ch. 7 which has now been discharged. At the time when I first started proceedings with Ch. 7, I had intentions of keeping my home. But since my discharge, I am finding it difficult to keep up with my 1st mortgage, 2nd mortgage and HELC. I am now one month behind in my mortgage payment and two months behind on my HELC. What I am interested in knowing is once a home goes into foreclosure, will I be held liable for the unpaid debt of my 1st, 2nd and HELC or am I protected under the bankruptcy law since I didn't sign a reaffirmation during bankruptcy.
Want to know how to stop foreclosure??
By: Adalia Dustin | 29-08-2008
The easy way: go to stop foreclosure : http://www.tostopforeclosure.com Those are REOs. For pre-foreclosure, there are several ways. They include, note buying, short sales, and providing services to those at risks of foreclosure. As to how to do each, that's a bigger lesson than I can post here. You are better off learning which ever method you wish to work with. I run a real estate seminar list. You might find one that suits you. Also, be aware that foreclosure investing is also rehab investing. You will rarely find a foreclosure that doesn't need, at least minor rehab. Especially in today's market when buyers are looking for upgrades.
FREDDIE MAC , After foreclosure can i buy my house ...
By: Jewlsbox | 27-08-2008
FREDDIE MAC , After foreclosure can i buy my house back from Freddie Mac? We are trying to liquidify all our assets. Thank You , Julie
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