There is no reason to think that you cannot still make money in a buyers market, just because the residential real estate market has crashed, and we are probably headed into another economic downturn or possible recession like the one we just came out of.

If you are renting a home, then you are in the majority of those who have to have a home to live in but probably cannot afford the costs, down payments, insurance, maintenance, utilities, monthly payments and then also all of the problems.

When an owner of a house faces the fact that he is going to loose his home, where his family has grown up and put much work in, will want to rent the house back from the person who buys it during the foreclosure proceedings.

By picking up a foreclosed home in auction, you will be buying the house at a rate set by the bank and that same bank may refinance the home for you after the deal closes.

Finding any type of home in a foreclosure sale, that has any equity, is hard and having equity is a must if you are to make any money from renting the house over time.

You have to be able to prove that you can afford to finance the house so you will have to either show proof that you have the money for a cash sale or a pre-approval letter from a mortgage company, prior to the foreclosure auction.

You can help out the former owners of a foreclosure home and make a wise investment at the same time if you purchase the home before it goes into foreclosure otherwise known as the short sale and you will be merely assuming the payments as well as the incurring the debt from the bank.

When you buy a foreclosed piece of property, you will assume the mortgage payments, but you can then refinance the property at a lower interest rate and then rent the home.

There are thousands of foreclosures all over the United States and in states such as California and Florida they have found that their foreclosure ratio has reached epidemic proportions.

If they have gone into foreclosure because of some unforeseen circumstance that will be alleviated, such as someone losing their job, you can make them an offer to rent to buy, which means that a portion of their rent can be used as a down payment if they want to buy their home back when things get better.

There are plenty of investment opportunities out there that are worth your time and money so not throw all of your hard work away on questionable properties.

Wedding Mc

Filed under: John's Message

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