Foreclosure Investing For Dummies, 2nd Edition

Looking to kick start your own property management career? Check out Foreclosure Investing For Dummies, which will get you started buying foreclosed properties to turn into your own income property!

In this book, you''ll learn to navigate the complexities of home auctions, deal with emotional former homeowners, and how to handle renovations. You''ll also get a heads-up on the foreclosure laws in all 50 states so you don''t accidentally run afoul of any complicated regulations.

Foreclosure Investing For Dummies shows you how to:

• Locate properties for sale and identify associated opportunities and risks
• Buy properties below market value at auction, from lending institutions, and from government agencies
• Fix up, renovate, and sell or lease your new property for a profit

This hands-on guide can help anyone make foreclosure investing work. So, grab a copy of Foreclosure Investing For Dummies, roll up your sleeves, and get going!

Introduction 1

About This Book 1

Foolish Assumptions 2

Icons Used in This Book 4

Beyond the Book 4

Where to Go from Here 4

Part 1: Prepping Yourself for Foreclosure Success 7

Chapter 1: Wrapping Your Brain around Foreclosure Investing 9

Investigating the Foreclosure Process from Start to Finish 10

Picking Your Point of Entry 12

Scooping other investors during the pre-auction stage 12

Bidding on properties at foreclosure auctions 13

Buying properties after the sale 15

Assembling a Team of Experts and Advisers 16

Getting Your Financial Ducks in a Row 17

Finding Foreclosures and Seized Properties 18

Performing Your Due Diligence 19

Investigating the property’s title and other documentation 20

Inspecting the property with your own eyes 21

Guesstimating a property’s true value 22

Investigating the situation and the homeowners 22

Setting and Sticking To Your Maximum Bid 23

Taking Possession of the Property 24

Completing the essential paperwork 24

Paying property taxes and insurance 25

Persuading the current residents to move on 26

Cashing Out: Realizing Your Profit 26

Repairing and renovating the property to maximize its value 27

Marketing and selling to get top dollar 27

Cashing out equity by refinancing 28

Profiting in other ways 28

Chapter 2: Getting Up to Speed on the Foreclosure Process 29

Identifying the Foreclosure Process in Your Area 30

Foreclosure by trustee sale 30

Foreclosure by judicial sale 31

Exploring the Missed-Payment Notice Stage 31

Getting Serious: The Notice of Default 32

Proceeding to the Foreclosure Sale 32

Halting the Foreclosure Process 33

Reinstating the mortgage 34

Requesting and receiving a forbearance 35

Mortgage modification or repayment plan 35

Filing for bankruptcy 36

Agreeing to a deed in lieu of foreclosure 36

Getting one last chance during the redemption period 37

Finalizing the Foreclosure: Ushering the Previous Owners Out the Door 39

Chapter 3: Picking Your Point of Entry in the Foreclosure Process 41

Dipping In at the Pre-Auction Stage 42

Exploring the pros and cons of pre-auction foreclosures 42

Guiding homeowners to good decisions 43

Dealing with anger and angst 44

Assessing your ability to deal with pre-auction scenarios 45

Pursuing Foreclosure Notices 46

Knowing the benefits of waiting for the foreclosure notice 47

Weighing the drawbacks of waiting for the foreclosure notice 48