This is the time to buy and buy low in the residential real estate market. Across the United States, foreclosure rates have reached an all time high as people struggle to maintain their homes and pay their mortgages. The reasons for the foreclosures are numerous. One thing is certain, however, and that is that the country is heading into a recession, if we are not already there.
The residential real estate market affects the entire country. When it crashes, it is just like the stock market crashing. Everyone suffers. The only people who do well are bankruptcy and divorce lawyers and doctors, who are always needed. Car repair shops tend to also do better in a down economy as people strive to fix old cars instead of buying new ones. Everyone else gets hit really hard. The collapse of the residential real estate economy triggers a domino effect and the dominos are already starting to fall down.
You can count on seeing a lot more foreclosures on the market. Foreclosures are usually located in blighted areas during times when the market is thriving. Now you see foreclosures just about anywhere, even in upscale neighborhoods.
A foreclosure occurs when the owner of the property can no longer pay their mortgage and the bank takes over the property. The owner is evicted and the bank or lender sells the property to someone who will cover the cost of any debt due. Banks and mortgage lenders do not want to hang onto the properties so they are willing to let them go as long as they get any monies they put out for the mortgage.
Buying foreclosed property is not difficult. You have to have cash ready as well as a certified check for the down payment. You have to be able to prove that you can afford to finance the house so you will have to either show proof that you have the money for a cash sale or a pre-approval letter from a mortgage company. You will also bid on the property along with other people.
You should not be discouraged if you get turned down. If you continue bidding on foreclosures, you will eventually get a property and you can then fix it up and rent it out to a tenant. You can hold onto the property until the residential real estate market turns around and it becomes a sellers market. This will be noted when the demand for housing is greater than the supply and will cause the value of the homes in your area to rise significantly.
You can find a list of properties in foreclosure in your local county courthouse. This process has to go through the court system. An owner must be evicted by the sheriff and the sale of the property must be public knowledge. Anything that goes through the court system is of record.
Real estate agents have a list of homes in foreclosure. These are owned by banks and lenders and this information is also of public record. If you are working with a real estate agent, they should be able to show you the homes in your area that are in foreclosure.
Be advised that these homes have already been looked at by savvy investors before they came on the market and make a better long term investment, or a home in which you plan to live, than a home that can be fixed and sold quickly.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Deployed servicemember? Need pro bono legal services?
By: Dori | 29-08-2008
Need pro bono legal services? Deployed servicemember? DPL may be able to legally assist you if your SCRA rights have been violated. DPL has just launched an ongoing giveback program to assist deployed troops. Please have family left at home contact us for answers.
http://debtprotectionlaw.com
What can I take?
By: Marilyn | 27-08-2008
What am I allowed to take with me when my house is in foreclosure in Alabama?
Race and real estate foreclosures
By: Fran Miller | 21-08-2008
What racial group is suffering the most from real estate foreclosures
Is there a free listing of condo foreclosures in ...
By: RON | 19-08-2008
Is there a free listing of condo foreclosures in the south st petersburg, florida area?
What are you asking for 5 Jester Drive Sandwich Ma ...
By: cchanba | 15-08-2008
What are you asking for 5 Jester Drive Sandwich Ma?? unable to tell if its a fixer upper or a tear down - heard the cellar was full of water at one point not too long ago. have looked thru the windows and have seen the squirrel damage, the down ceilings, the buckled floors, the mold growing and many fissures in the walls. the smell thru the windows was strong - does this need hazmat?
Why are Property Values Dropping?
By: fmschlag49 | 25-07-2008
What do you see as one of the prevailing reasons why property values continue to drop?
Q&A Powered by:
Latest Real Estate Articles
Investing In A Ranch
By: Martin Webbster | 15/10/2008
You have heard severally about the term ranches and would like to know what they actually are. Well, ranches are a piece of rural land that that promises lots of benefits and incentives for the owner. You can build a ranch for yourself or buy one. Either way you will...
A Checklist For Acquiring A Waterfront Property
By: Martin Webbster | 15/10/2008
The real estate industry has been a profitable industry and much so these days. The market is experiencing a boom today and many investors have therefore been on the search for a lucrative sector of the industry to invest in. Many homeowners especially the smart ones are now diversifying their...
Important Things You Should Know Before Buying Rural Real Estate
By: Martin Webbster | 15/10/2008
Rural real estate holds a lot of attractions for the investor. Interest in this type of property has risen of late and many buyers have now become eager to get apiece of once disregarded area.
This surge in interest has introduced a lot of dynamics into the countryside property market. Many...
Why is Cyprus Such a Great Investment Opportunity?
By: Hannah Walker | 15/10/2008
The wheels of reconciliation have been set in motion as determined peace talks begun at the beginning of September '08 to once more attempt a reunification between the north and south of Cyprus. Since the Turkish invasion in 1974, Cyprus has remained divided and dominated by hostility. Now, despite the...
Cyprus: A Backdrop to Your Investment
By: Hannah Walker | 15/10/2008
With the recent peace talks underway and reunification on the horizon, even more people will be encouraged to invest in Cyprus, the largest island in the Mediterranean, situated south of Turkey and East of Greece. The Cyprian economy is set to soar after peace is made between the northern Turkish...
Lease Commercial Property London
By: Matt Grimes | 15/10/2008
Leasing commercial property in London is a whole different ball game from leasing commercial property in other areas of the United Kingdom.
Why Buying Smaller is Better
By: Keith Cook | 15/10/2008
However, the fact remains that many of these foreclosures come from people taking out huge adjustable mortgages on huge homes with an inadequate income to deal with the interest. Once the interest rates changed, those people could not hope to afford the payments. It could all have been avoided with the purchase of a more modest home and a fixed-rate mortgage.
A New Home Gives Space to Blending Families
By: Keith Cook | 15/10/2008
For children, home is a symbol for survival and nurturing. Their roots are there, their friends are there, and their favorite play spots are there. Moving can be a very emotional experience for children as they must say goodbye to the base that they've had all their life.
More from Sal Vannutini
Real Estate Investing Comes Down to Buying and Selling at the Right Time
By: Sal Vannutini | 07/10/2008 | Real Estate
Real estate investing could be summed up as “location, location, location,” but just as important is the timing, timing, timing! Timing is especially important in real estate investing.
Learn How to Make a Real Estate Investment and See a Huge Return
By: Sal Vannutini | 06/10/2008 | Real Estate
“Buy low, sell high,” it’s a credo we have all heard before, and it sounds like a sure way to make money from your real estate investment, right? Well, it’s harder than that quote makes it sound and you have to work diligently to ensure you see a great, high return.
Make a Profit With Real Estate Investing
By: Sal Vannutini | 05/10/2008 | Real Estate
Real estate investing includes several different ways you can earn a profit, if you know the differences and are prepared to take advantage. You could, for example, flip a property by buying it, fixing it up quickly and immediately selling the more valuable property for profit. You can buy foreclosures, which are auctioned off, and potentially get a steal of a price on a great property.
Before You Make Your First Real Estate Investment
By: Sal Vannutini | 29/09/2008 | Real Estate
Just because you’re making a real estate investment, it doesn’t mean that you are wealthy. You could be purchasing your first home for your family, or you could be changing career paths and pursuing real estate as your career and passion. Don’t be careless; consider these steps to get yourself on a good course towards success.
Find Out if Real Estate Investing is for You
By: Sal Vannutini | 28/09/2008 | Real Estate
The real estate investing business can be complex and confusing, with legal, financial and analytical components all coming into play. So before you gather up your money and spend a lot of time, you have to find out if you would be ready. Use this as a guide before diving into real estate investing.
Rent to Own - 21st Century Home Owning Idea
By: Sal Vannutini | 26/09/2008 | Real Estate
Rent to own is used in many instances, for instance there are various types of products available in a rent to own facility.
Foreclosure Investments
By: Sal Vannutini | 25/09/2008 | Real Estate
By investing in real estate market foreclosures, you can make money. The profits are very good, when choosing the right listed property of distressed homes. This is the reason so many individuals begin investing in real estate.
Finding a Government Foreclosure House
By: Sal Vannutini | 24/09/2008 | Real Estate
The Federal Housing Administration and Housing and Urban Development and other government agencies own homes that are a government foreclosure house. A government foreclosure home becomes awarded back to its appropriate government agency and then is listed as a government foreclosure house. It is then resold at a public auction and resold to the highest bidder.
Finance 
