Foreclosures Help Information

Posts Tagged ‘real_estate’

Foreclosed Government Homes

Question: I see this program on tv alot and want to know if anyone has used it to buy government tax foreclosed homes?

John Beck is famous on tv for his pennies on the dollar program. Has anyone ever bought house that cheap before using his program? If so Please enlighten me, and tell me where you get the lists. And what you paid for it, and any other details you can tell me. I find it hard to believe that some one would loose their house for $378.52 just because they didn't pay the taxes. Thanks in advance. Anything personnel cant be sent to my email this is a yahoo address realestatehero
He states in his program that these are actual purchase prices and they are free and clear. And after buying you can sell, keep, rent, ect.
he doesnt state that after you buy you have to pay the taxes, he states that the price you buy is the back tax.

>

Answer: This is basically a scam.

Does it sound logical that a person that owns a home that has value will lose that house just because of a few years of back taxes? First of all, if the property has a mortgage there is no-way that the bank will allow this property to be lost due to back taxes. The lender would step-up and pay these taxes.

The only properties that are lost like that is bare land when the owner discovers that the property is basically worthless. No water, no utilities, land locked by other parcels without any legal "right-of-way" to get onto the parcel. I've seen owners try and give these worthless plots away to a charity just for the tax deduction. The charities refuse them because they don't want to be responsible for the taxes either.

Government Foreclosures - Government Owned Homes - Video

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Mortgage Foreclosure Properties

Question: Does a mortgage foreclosure erase an existing foreclosed lien?

Our condominium association filed and foreclosed a lien for unpaid dues. Redemption period passed. Several months later (now) mortgagor (bank) is beginning foreclosure process for unpaid mortgage. Property is "under water". If mortgage is foreclosed and redemption period passes, what happens to our existing lien?? Thanks.

>

Answer: When the mortgage company forecloses there are several things that can happen. The mortgage company may pay off the association because they have agreater interest in the property. You may also receive a 1099 for income earned that you file have to file on your tax return from both parties.

Mortgage fraud scheme involved in more than 550 foreclosures

Buying Foreclosure Property

Question: How do you make an offer on and buy a foreclosure property?

If the property is already bank-owned, do you make an offer to the bank the same way you would with a seller? I heard that if a property is already bank-owned, you can make outrageous low-ball offers on the property and that some banks would accept next to nothing to unload a foreclosed home. Is there any truth to this? or should i make the offer i would if I were dealing with the original seller?

>

Answer: First, you need to find out which real estate agency/broker is handling the sale of the property. Banks don't like to actively get involved in the sale. Find out how much they are asking and make an offer through the broker/agent. You can offer a lower amount but be prepared that there could be other potential buyers/investors who are in the running who might offer the exact amount that the bank wants or even a higher amount. In addition to that, bank owned properties require that your credit be sound and all your finances be in order to make the purchase. Banks don't have time for delays while you search endlessly for financing. Have your pre-approval letter ready, your down payment, a clean credit history and lots of patience as the banks tend to operate on their own schedule and it can be a very slow process until the purchase is complete. You should also ask your real estate broker about acquiring a home as a "short sale." This is where the bank may sell the house to you if you offer the amount that is owed to them. Currently, the market is very bad and there are a lot of houses fitting this status. Research, research, research and you'll benefit for doing so.

Edit: I also neglected to say that if you can make a cash offer, you will definitely be in a favorable position. As they say, "cash is king."

TOP 10 TIPS TO REO REAL ESTATE INVESTING