Tips on Being a Foreclosure Investor

By: Melanie Jordan

When I ran my mentorship program for Orange County, CA real estate agents for a small Orange County, CA real estate brokerage, I stressed how important it was to make sure that the buyer you were going to be representing (or if you were representing the seller, focus on the buyers agent's client) had truly been pre-approved for a mortgage to buy the property in question.? As a former loan officer I knew all the tricks lenders used to make someone look like they had financing when they weren't even sure and wanted my students to be wise to them.

I used to crack my real estate agent class up by hitting the point home about loan pre-approval by saying "you don't want to put someone in your car who can't qualify to buy a piece of gum".? And it really worked, they remembered!?

Well when it comes to foreclosures, if the numbers for the deal make sense, as a potential investor in a foreclosure property, you don't have to worry about being held up to my "piece of gum loan qualification standard".?

Using special techniques, it is possible to purchase a property that is in pre-foreclosure by making up the back payments owed on the property, and then going forward, making the payments due on behalf of the homeowner.? So if you have credit issues yourself, a high debt level or trouble showing income the way a lender typically likes to see it, it doesn't matter at all as long as you make the payments on the property, since you are not qualifying for the loan, just paying it as the new owner of the property!? Sounds like real estate investing Shangri-la?? It just could be!

Foreclosures
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Foreclosures