subject: How To Buy Preforeclosures When You Can't Or Don't Want To Find The Seller [print this page] The number one reason that people lose on great deals when they try to buy preforeclosures is because they can't find the seller. Not only that, but they think that they NEED the seller in order to be able to make money. Guess what? The easiest and fastest way to profit when you buy preforeclosures is to not even deal with the seller at all. Then, you're not left to figure out whether they're good sellers or bad sellers, willing or unwilling, or even fighting about how much you're going to pay them for their foreclosures. All that you have to do is figure out which property you want and go after the lien instead.
You see, once a house goes into default, the bank is able to do with it whatever they want. If the lien holder doesn't get their money, they can sell the lien to whoever decides to buy it, as long as they get the money that they need. That means that if your neighbor has a $57,000 lien on his home from a second mortgage gone bad, you can go to the bank, buy that loan at a discount, let's say for around $5,000, and make $52,000 profit just for dealing directly with the bank and helping out a friend. It's not about putting people out of their homes or trying to take advantage of them. It's about helping them out.
When you own someone's lien, even if it's a second mortgage, you can foreclose if they don't pay as agreed. If you do, you'll own that home pending the full payment of the first mortgage. Therefore, you're in the perfect place to help them out, because you don't want their house. You want the money. You can help them sell, refinance, or modify their home loan so that you can collect your profits and make their life a little easier.
There are many different ways to buy preforeclosures, but this is the easiest, quickest, and most profitable way to do it. It doesn't matter how much you want to spend or what you're looking to make on the deal, because there are tons of these deals out there if you know where to look. Remember back ten or so years ago when the HELOC (home equity line of credit) and refinancing were so freely flowing? Well, now people have second mortgages that they blew on whatever they needed at the time and cannot afford to keep up with. You can dive in and help out by buying that second mortgage, saving their home, and making yourself a few bucks in the process.
by: Jason Loucks
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