They say that one man’s misfortune is another man’s fortune. Few people really like to take advantage of someone else’s tough times, but in the present housing market it is nearly foolish not to. What am I talking about? The surging number of home foreclosures! Yes, many homeowners have come to the rude awakening that their dream home is nothing but a nightmare for them. Rising mortgage interest rates, sharply higher property taxes, and job loss have contributed to the increase in home foreclosures. Your getting involved may actually help someone out; read on and we’ll take a look at why you just may want to take the bite.
There is no other way to say it but this: no matter what, some people will foreclose on their homes. However, better than foreclosing is a sale prior to foreclosure which helps everyone out:
1. The seller wins because he avoids ruining his credit standing. A foreclosure may be treated like a bankruptcy, disrupting the homeowner’s credit for years. By escaping homeownership which has now become bondage, this type of owner could regroup and buy a home once again sooner rather than later.
2. The mortgage company is pleased with a home sale prior to foreclosure because they avoid costly court costs and having to maintain than later dispose of property that they do not want to own.
3. They buyer – that is you – can win out by getting a home that costs less than market value. You could both make the necessary repairs or updates and keep the home or you could turn around and sell the home for a handsome profit.
Yes, in some situations a sale prior to foreclosure is a true win-win-win situation for all three parties involved. Not always, as sometimes the seller is the big one to lose or the mortgage company may end up settling for your low deal at a loss to them. Never should such a deal work against you, so take care to make certain that there is value in the foreclosure.
Experts are saying that foreclosures will only be increasing in the months ahead. If you find yourself able to swing a deal you could end up making tens of thousands of dollars off a foreclosed piece of property. So, keep your eye on your neighborhood housing market for distressed sellers; you just may be the “white knight” that everyone is hoping will come along!
Jeff Lakie is a freelance finance writer, His website The Foreclosure List Guide is a great place to find out more about free government foreclosure listings . Visit his site today and find out more.