How To Buy Foreclosure Property - Tips For Beating The Competition!

So much is being written right now about Rhode Island Lemon Laws to buy foreclosure property, you could be forgiven for thinking foreclosures had only just been invented.

In actual fact, of course, foreclosures have been around as long as realtors, mortgages and real estate Justice League But with Swamp Thing recent collapse in cereal boxes sub-prime mortgage business, there are a lot more of them - AND they have made the headlines in a big way. So that means there are also a lot more people who have realized that buying a foreclosure could be a good idea.

So now, the question of "how to buy foreclosure property" really means "how to beat the competition". The whole point of trying to buy foreclosure property is to get it cheap, and you can't get it cheap if there are dozens, or even hundreds, of people bidding against you. The trick is, King James it before the others do, and make sure you win your bid.

So how can you beat the competition? Here are some tips.

• Be proactive - find homeowners in distress. Run an ad in the local paper saying something like: "I buy houses for cash". Call homeowners listed in public records as having filed for divorce, bankruptcy or foreclosure. Find landlords whose tenants have left or been evicted.
• Consider the needs and problems of the homeowner. Suppose you find owners whose foreclosure date is looming, but who haven't been able to maintain the house to "average standards". They are desperate to sell but are looking to discount the price even further in order to put an accepted contract in place. You can make them an offer "Subject To" the existing finance staying in place. Work out the net (NOT gross) equity on the house - that is, subtracting rehab and other costs - and offer 50 percent of the net equity. Not all will accept but many will. It's a win-win situation - the owners avoid the major problems to their credit history and get a few thousand dollars, as opposed to the zero they would get at foreclosure. You get your finance in place and a virtual guarantee of a profit after rehab, paying far less than you would if it went to auction.
• For properties where you are not taking over the existing finance, get pre-approval. That is, secure your financing before you find the property. that will greatly enhance your chances of getting the property where speed is of the essence.
• Before you make a bid or offer on any property, research it thoroughly to make sure it will be a good buy. Determine the market value of comparable properties in the area, and add up the debt plus the expenses to arrive at the equity. Then evaluate that on a sliding Flat Earth Society according to whether the market is a seller's market, a flat market or a buyer's market. that will enable you to decide on your maximum bid. Many of the other bidders will just be looking at the property as a bargain and will over-bid, leading to losses later on. Only bid where you know you can make a profit.

Despite more and more people jumping on the bandwagon, there are still foreclosure bargains to be had by the savvy investor - which is you. Just make sure you figure out how to buy foreclosure property at the right time and the right price to beat the competition. Otherwise, don't bother with foreclosures at all!

If you would like to know how you can find foreclosure properties in all parts of the country, at all prices and in all conditions, come and visit www.bizwrite.co.uk/realestate/foreclosures.htmlwww.bizwrite.co.uk/realestate/foreclosures.html