Buying Real Estate Foreclosures 3/E

by Kollen-Rice

• ISBN13: 9780071546614
• ISBN10: 0071546618
• Edition: 3rd
• Format: Paperback
• Copyright: 2008-09-04
• Publisher: McGraw-Hill Education

Summary

Written by one of America's most experienced real estate experts, this completely revised and updated edition of the bestselling Buying Real Estate Foreclosures offers the latest information on this hot real estate market, including Sources of foreclosed properties, including government agencies, auctions, banks, and defaulting homeowners, Tips on conducting an inspection, calculating property value, and uncovering hidden costs, New strategies for cutting through red tape and negotiating with banks, government agencies, and defaulting homeowners, Techniques for buying foreclosures before, at, and after an auction, Ways to benefit from the latest groundbreaking foreclosure laws. Filled with user-friendly step-by-step worksheets, checklists, sample documents, foreclosed property Web sites, and a helpful glossary, this third edition helps you make sense of all the changes in the foreclosure market. Buying Real Estate Foreclosures guides you toward a purchase that will leverage the most profit-safely and sanely-with minimal risk. Book jacket.

Author Biography

Melissa S. Kollen-Rice is an attorney with more than 20 years experience in all phases of the real estate industry, and the director of Long Island Real Estate Training.

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Table of Contents

Table of Sample Forms, Illustrations, and Checklists	p. xi
Preface	p. xv
Acknowledgments	p. xvii
Introduction	p. xix
Understanding Foreclosures	p. 1
An Overview of the Legal Procedure in Foreclosure Actions	p. 3
Mortgages and Deeds of Trust	p. 5
Judicial and Nonjudicial Foreclosures	p. 9
Finding the Foreclosure Statute in Your State	p. 14
The Soldier's and Sailor's Civil Relief Act of 1940	p. 16
The Three Opportunities for Purchasing Foreclosures	p. 16
The Basics of Buying Foreclosures at the Auction	p. 19
A Day at the Auction	p. 21
Warning: Peculiar Purchase Ahead	p. 27
Finding Upcoming Foreclosure Auctions	p. 31
The Basics of Buying Foreclosures after the Auction-from Banks	p. 35
Defining Bank-Owned Properties	p. 37
Redefining Bank-Owned Properties	p. 38
A Lender's View of Bank-Owned Property	p. 39
An REO Purchase versus a Bank Auction Purchase	p. 41
Finding REOs	p. 42
Preparing Your Offer	p. 44
Negotiating Strategies That Help You Cut through the Red Tape	p. 47
The Basics of Buying Foreclosures after the Auction-from Federal, State, and Local Government Agencies	p. 49
Defining Government-Owned Property	p. 51
Finding Government-Owned Foreclosures	p. 51
The Basics of Buying Foreclosures before the Auction	p. 57
Understanding the Defaulting Owners	p. 59
How You Can Help	p. 60
Negotiating with Defaulting Owners-When the Property Has Equity	p. 61
Negotiating with Defaulting Owners-When There Is Negative Equity (a.k.a. "Short Sales")	p. 62
Steps in a Short Sale	p. 66
Finding "Pre-Auction" Foreclosures	p. 66
Contacting Defaulting Owners	p. 67
Additional Strategies and Tips for Buying Pre-Auction Foreclosures	p. 70
Buyers Beware: Has Your State Adopted a Home Equity Theft Prevention Act?	p. 71
Clarifying Government "Acts" of Kindness	p. 72
Financing Foreclosures with Traditional Real Estate Loans	p. 73
Riddle for Buyers	p. 74
Calculating Your Foreclosure Budget	p. 75
The Burden of Proof	p. 77
Decisions, Decisions	p. 78
Types of Loans	p. 81
Comparison Shopping for the Best Lender	p. 88
Key Questions to Aska a Lender	p. 89
Creative Strategies for Financing Foreclosures	p. 95
Foreclosure Purchasers with Limited Cash and Good Credit	p. 97
Foreclosure Purchasers with Limited Cash and Tarnished Credit	p. 102
Foreclosure Purchasers with a Lot of Cash and Good Credit	p. 106
Foreclosure Purchasers with a Lot of Cash and Tarnished Credit	p. 108
Equity Sharing: Buying Foreclosures with a Partner	p. 109
How It Works	p. 111
Why It Works	p. 111
The Owner-Occupant's Goals and Challenges	p. 112
The Investor's Goals and Challenges	p. 112
Comparing Purchase Details and Finance Costs	p. 114
Equity Sharing to the Rescue	p. 117
Contract Terms to Agree Upon	p. 119
The Risks Involved in Equity Sharing	p. 124
Equity Sharing for Parents and Children	p. 125
Equity Sharing for an Investor and a Contractor	p. 127
Finding a Partner for Equity Sharing	p. 127
Equity Sharing Helps People Achieve Their Goals	p. 129
Choosing the Right Property: What You Don't Know Can Hurt You	p. 131
Finding the Right Property	p. 133
Asking the Right Questions	p. 136
Organizing Yourself	p. 145
Inspecting the File of the Foreclosure Action	p. 147
Hiring a Title Expert	p. 147
Asking for the Terms of Sale before Bidding on Foreclosures at Auctions	p. 147
Uncovering Hidden Costs	p. 148
Establishing Property Values	p. 152
Calculating Cash Flow	p. 153
Preparing Your Bid Sheet	p. 157
Organizing Your Prebid Calculations	p. 159
Fine Tuning Your Prebid Calculations	p. 159
Final Confirmation	p. 168
Congratulations! You Are the Successful High Bidder	p. 169
When You Are the High Bidder at the Auction	p. 171
When Your Offer for a Bank- or Government-Owned REO Foreclosure Is Accepted	p. 172
When Your Offer to the Defaulting Borrower for a Preforeclosure Is Accepted	p. 172
Coast to the Closing with These Five Standard Operating Procedures	p. 173
Applying the Five Standard Operating Procedures to Your Particular Circumstances	p. 176
An After-Contract Checklist	p. 181
Now that You Own the Property	p. 183
Steps to Take for Completing the Transaction	p. 185
An After-Closing Checklist	p. 188
Making Repairs to Your Foreclosure	p. 189
Pinpointing Priorities	p. 191
Finding a Contractor	p. 191
Implementing a Competitive Bidding System	p. 192
Implementing a Performance-Based Payment Plan	p. 211
The Big Picture	p. 217
Getting Started Today	p. 219
Follow These Six Steps for Success in Purchasing Foreclosures	p. 221
From Rags to Riches with Real Estate Foreclosures	p. 225
Glossary	p. 227
Index	p. 237
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