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Property Foreclosures and Property Tax Liens

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Foreclosures are reaching record levels, but buying a foreclosed property with someone elses, that is borrowed money, has become increasingly more difficult. Traditional lenders such as banks and mortgage companies have to overcome their shortage of funds, caused by their irresponsible lending practices. This will still take some time, since disclosure, and therefore, write-off's about loans that are still performing (that is, the borrower ist still able to make his monthly repayments of the loan in full), but exceed the underlying asset value, has been slow and thus many bank and mortgage company balance sheets include lots of overstated values. The result of this, and, the shortage of capital in the banks, make obtaining loans, especially for speculative purposes very difficult.

It may well be, that for some time to come, despite well advertised TV programs that state the contrary, purchasing foreclosed homes is limited to those that have large amounts of cash at their disposal, whether it is their own or borrowed from some private source. Bank financing, for the moment and, unless you are able to invest around 30-50% of your own cash, appears to be out of the question.

To know, where and how to buy foreclosure homes is a great skill. You could find your dream home at a wholesale price, or start a new career. It could also become an excellent source for a retirement income.

Is it possible? Well, if you are clever, single minded, persistent, hardworking, methodical, inquisitive, cautious, lucky, and at the right place at the right time, yes, it probably is!

There is no easy formula for how to buy foreclosure homes. But there are a few well defined, different stages, when you have the opportunity to buy them:

	At the pre foreclosure stage, when the foreclosure has been initiated by the lender (i.e. the borrower has been advised that foreclosure proceedings have been initiated against him/her and his/her property. There are usually 30/60/90 days for the borrower to do something about it, provided he/she finds the funds to redeem the property). This is a good time for a buyer, but beware, the borrower is at this stage usually under severe stress or in complete denial!
	The next stage is to purchase at the auction. Often, only the main lender appears at this auction and you will have to bid against him. When there are several lenders involved, the largest lender often purchases the debts of the smaller lenders (this is common, when the other lenders tend to be banks or mortgage institutions. But it is not common that banks purchase private mortgages). The lender will bid on the property, wipe out other lienholders, then pay the balance of outstanding property taxes to secure the property's clear title. The lender, typically the senior lien holder, wipes out all junior lien holders or judgments in the process. Lenders do not go through the effort and expense of foreclosing, only to lose the property for a small amount in back taxes.
	Finally, you can buy a REO (Real Estate Owned) from the lender, if the lender has acquired the property.

You can learn everything about foreclosure purchases. Real estate is generally a solid investment and a means to build wealth. There is no real estate or brokers license required to purchase or trade in foreclosure properties. Though, if you want to deal with VA and HUD properties, you will need a licensed broker to present the offer.

If you start in this business, try to purchase properties as close to your location as possible. Because there are many issues for which you might want to be present yourself and not represented by a lawyer only. Also, check the laws of your state on foreclosed properties and make sure that a lawyer has actually checked the contracts, looked at potential liens that could still exist, after you purchased the property. or any other matter, that could put your purchase at risk.

Even though, the financing of foreclosure properties has changed in 2008, the underlying principles of buying a foreclosure property has not. The legal hurdles are still the same and, the risks remain as well. The above books should provide you with some guidance, but always consult a legal specialist, before you proceed.

Massive Foreclosure Profits
(Click here to get to site)

The Ultimate Real Estate System
(Click here to get to site)

How to buy Foreclosures
(Click here to get to site)

RealtyTrac - Real Estate Foreclosures (Click here to get to site)

RealtyTrac Join for free and find a bargain in your area. 500,000 properties which include pre-foreclosures, NTO NTS, auctions, HUD, VA. The monthly costs will sign you up to an excellent, daily updated, database of properties.

Gain instant and unlimited access to everything you need: Free 7 Day Trial Daily e-mail alerts and property updates current foreclosure properties eBooks and educational materials Network of Foreclosure Specialists

The Costs US$ 29.95 per month membership fee for instant unlimited access to the database

ForeclosureFreeSearch. (Click here to get to site)

ForeclosureFreeSearch. They offer a Foreclosure Mentor program where they teach you how to purchase foreclosures One of the largest Foreclosure databases.

Gain instant and unlimited access to everything you need: Full Property Information Description of properties Training

The Costs US$ 9.95 per week for instant unlimited access to the database

Books on Tax Liens and Real Estate

Procedures on Tax Liens vary from State to State. Generally, in the event a tax lien on personal property is not paid within a specified time (and after several written notices are given), the property may be seized and sold at a foreclosure sale. On real property, one of two methods may be used: either the property may be seized and sold (a tax deed sale), or, in some States, the tax lien may be offered to investors (in the form of a tax lien certificate) with an accompanying right, for the investor, after a specified period of time, to institute foreclosure proceedings (a tax lien sale). If you want to know more about the details and how you can invest into tax lien certificates, there are numerous good books available. The ones below, were the best we could found.

If you are seriously considering investing into tax liens, then you should get an insight into tax auctions and the implications of buying tax liens.

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The key to making money in real estate is finding motivated sellers. Financial difficulties of property owners are often the single biggest motivator to sell. From finding properties in foreclosure, to negotiating with sellers in financial distress, to reselling the properties, to realizing healthy profits you can learn almost everything from these books. Understanding the concepts involved in investing in foreclosures such as finding a motivated seller, structuring the deals, including how to buy with small down payments, are key issues in being successful. How to avoid costly contract pitfalls and how to hold on to newly acquired properties and grow a portfolio for a long-term equity build-up are all topics that will interest the future Foreclosure Tycoons.