Foreclosures are at an all time high in most states. Does that mean that pre foreclosures are right for your real estate investing business? Some gurus, mentors and investing teachers are pushing pre foreclosures as the only business to be in, while others are saying to take a step back. You may want to take a serious look at how you actually work your pre foreclosure business.
Attracting Business/Advertising/Marketing – Do you use bandit signs that say I Buy Houses, Foreclosure We Can Help, and We Buy Houses for Cash. How about cards, letters, or flyers what do you say? We can help, I’m an investor not a real estate agent, and I buy houses not list houses. I can close quickly. You may want to revisit your wording if you do not buy or help or pay cash or close quickly. States Attorneys General, HUD, and Federal Agencies are beginning a big push to crack down on fraudulent transactions in real estate and mortgages.
Do You Offer to Help? – We can help. How do you help? Do you offer counseling and help direct the sellers to services when you can’t help? Offer options such as option #1 make up all your back payments make your loan current, option #2 work with your lender and roll your back payments and interest into a new loan, option#3 find a new lender to pay off the current loans, option #4 sell the big cars, the boat, the RV to make your loan current. Or do you go for the kill-Get the deed! -Get the deed!-Get the deed? How do you help?
Do you Buy Houses? – Which pre foreclosure home did you buy? The business of pre foreclosure is to take control of the property while you work with the bank or banks to accept an amount less than what’s owed on the property. Did buy the house? Well the $10.00 you gave the seller to sign the deed and other papers to allow you to work with the bank doesn’t mean you bought the house. Did you record the deed? Will your name or your corporate name or trust name show up in the chain of Title? Did you buy the house?
Do You Pay Cash? – The $10.00 you paid to move the deal along, or the $20.00 you paid because usually you only pay a dollar but all you had was a ten or twenty. Was that your purchase price or like you said that it was legally required that money change hands to bind a contract. Or did you buy it with the excess profits that you told the sellers you are going to split with them? Maybe you gave them $1000.00 moving money or a couple of thousand to close the deal because you know you can create equity by working with the bank, now that’s cash.
Who Do You Work For? - In pre foreclosure transactions you are the implied agent for the seller when they allow you to represent them in this process. They have given you power of attorney, given you the right to access their accounts of the mortgage company and signed over to you ownership of the property (if you record the deed) and in too many cases signed over blank forms which you fill in with the correct names when you get them. You are now working for the seller and you will be in deep dodo if you do something wrong.
If the deal doesn’t go through do you give the house back if you bought it? Do you tear up all the paper work and say next? Do you get your money back? What help do you offer now? What can you do when the bank doesn’t work with you? In the end most don’t work with you. If pre foreclosure works why do all of these homes actually go into foreclosure at record levels across the country? You can pay thousands for a weekend seminar in pre foreclosures or buy home study courses or sign up for mentor programs the fact is you have no control of the process and if you make promises and don’t deliver you may get into big trouble.
Bill Carey with over 30 years in real estate sales, investments, and home building offers a unique perspective to the buying and selling process of residential real estate for F*R*E*E consumer information and reports log on to http://www.CharlotteNCExecutiveHomes.com and see “Insider Real Estate Secrets Revealed" . . . a must-read for Home-Owners and Renters! It's a F*R*E*E 12-lesson e-course covering more than 20 topics exposing the realities behind buying and selling a home. It Could Make(or Save) You Thousands of Dollars
See http://www.BillCareyRealtor.com and sign up for our monthly e-newsletter with tips for buyers, sellers, home owners and soon to be home owners.
(Your Comments are Welcome)