Foreclosure Myths: 77 Secrets to Saving Thousands on Distressed Properties!

Foreclosure Myths: 77 Secrets to Making Money on Distressed Properties......Page 8
Contents......Page 12
Foreword......Page 18
Acknowledgments......Page 20
About the Authors......Page 22
Introduction......Page 24
Myth #1: I’m Taking Unfair Advantage of Someone Else’s Misfortune.......Page 26
Myth #2: Foreclosures Happen Only in “Bad” Neighborhoods and During Economic Downturns.......Page 30
Myth #3: Foreclosures Are Always the Result of Financial Irresponsibility.......Page 32
Myth #4: The Average Person Can’t Find Foreclosures—You Have to Be an Insider.......Page 34
Myth #5: I Need a Lot of Money to Get Started.......Page 35
Myth #6: If Foreclosure Rates Are Rising, Buying Doesn’t Make Sense Because There Are Too Many Homes Already on the Market.......Page 36
Myth #7: The Process Is Incredibly Time Consuming; There’s No Way to Get Started If I Already Have a Full-Time Job.......Page 38
Myth #8: I Have to Be an Expert.......Page 40
Myth #9: Real Estate Agents Won’t Help Me with Foreclosures—There’s Nothing in It for Them.......Page 41
Myth #10: I Can Do This by Myself.......Page 44
Section 2: The Foreclosure Process......Page 48
Myth #11: The Process Takes a Long Time.......Page 49
Myth #12: I Can’t Get It—It’s in Bankruptcy.......Page 51
Myth #13: I Can’t Help Out the Homeowner.......Page 52
Myth #14: They’ll Save the Property, and I’ll Be Out My Time and Money.......Page 55
Myth #15: They Can Still Cancel the Sale.......Page 56
Myth #16: I Have to Wait Until It’s Listed with a Real Estate Agent.......Page 57
Myth #17: It Was Published in the Paper, So I Can Buy It Now.......Page 58
Myth #18: I Have to Wait Until the Auction to Buy the Property.......Page 59
Myth #19: If I’m Not the High Bidder at Auction, I Can Forget Buying the House.......Page 62
Section 3: Finding the “Right” Properties......Page 66
Myth #20: Every Foreclosure Is a Good Deal.......Page 67
Myth #21: I’m Buying a Home at the Foreclosure Auction.......Page 70
Myth #22: Courthouse Auctions Are the Only Source of Foreclosure Properties.......Page 72
Myth #23: Real Estate Agents Always Have First Crack at the Good Deals.......Page 75
Myth #24: I Can Find Better Deals Outside My Own Area.......Page 76
Myth #25: Foreclosed Properties Are Always Trashed and Need Extensive and Costly Repairs.......Page 78
Myth #26: Something Else Is Wrong with the Property If It Was in Foreclosure.......Page 80
Myth #27: I Don’t Need an Inspection.......Page 81
Myth #28: I Can’t Get Inside, So There’s No Way for Me to Estimate the Property Value.......Page 83
Myth #29: Never Bid on a Second Mortgage.......Page 85
Myth #30: I Found the Opportunity Too Late—There’s Not Enough Time.......Page 88
Myth #31: I Found the Opportunity Too Early—I’ll Probably Waste My Time.......Page 90
Myth #32: I Can’t Get a Good Deal Through a Real Estate Agent.......Page 91
Myth #33: I Can’t Get a Good Deal from Bankruptcy.......Page 93
Myth #34: I Can’t Get a Good Deal on a Government REO.......Page 95
Myth #35: I Can’t Get a Good Deal from the Lender.......Page 98
Myth #36: The Purchase Price and My Fix-Up Costs Are the Only Costs I Need to Consider.......Page 102
Myth #37: I Should Adjust My Bidding Strategy Depending on How Many Bidders Show Up and How Eager They Seem to Be to Purchase the Property.......Page 105
Myth #38: It Doesn’t Matter Where It’s Located; Since I’ll Pay Well Below Market Value, the Location Isn’t Important.......Page 107
Myth #39: I Shouldn’t Bring in Experts to Help Me Analyze the Deal; the Fewer People Who Know It’s Available, the Better.......Page 110
Myth #40: Interest on Loans from Private Investors Is Too High.......Page 112
Myth #41: Lenders Don’t Want to Deal with Little Ole Me.......Page 115
Myth #42: Lenders Won’t Be Willing to Talk to Me Until I Have a Deal on the Table.......Page 116
Myth #43: I Should Use as Much of My Own Money as Possible.......Page 118
Myth #44: I Can’t Use FHA or VA Financing.......Page 119
Myth #45: I Can’t Use a Home Equity Loan to Finance the Property, Since I Don’t Own the Property Yet.......Page 120
Myth #46: Since the Property Is Already in Foreclosure, I Can’t Assume the Owner’s Loan.......Page 122
Myth #47: The Property Has to Be in Good Shape to Get Financing.......Page 124
Myth #48: Taking on a Partner Will Merely Cut into My Profits.......Page 126
Myth #49: Once I Purchase the Property at Auction, I Can Take Immediate Possession.......Page 128
Myth #50: Only Real Estate Pros Are Allowed to Attend Real Estate Auctions.......Page 131
Myth #51: There Will Be Lots of People Bidding against Me.......Page 132
Myth #52: The Higher the Bidding Goes, and the More People Bidding, the More Likely It’s a Great Property.......Page 133
Myth #53: I Won’t Be Able to Get Good Title to the Property.......Page 135
Myth #54: I’ll Have to Pay the Back Taxes and Insurance.......Page 138
Myth #55: I Can’t Force the Previous Owners to Vacate the Property.......Page 139
Myth #56: I Don’t Need Insurance Until the Previous Owners Move Out and I Take Possession of the Property.......Page 141
Myth #57: I Need to Finish Renovations Before I Sell.......Page 144
Myth #58: The More I Put into a Property, the More Return I’ll Get.......Page 146
Myth #59: I’ll Save Money and Make More Profit If I Make All Repairs and Upgrades Myself.......Page 151
Myth #60: I Can’t Make a Profit.......Page 153
Myth #61: I Won’t Be Able to Sell It—They Couldn’t!......Page 154
Myth #62: I Already Have a Home; My Best Bet Is to Flip the Foreclosures I Purchase.......Page 157
Myth #63: The Property Will Be Easiest to Flip When It’s Market Ready.......Page 159
Myth #64: It’s a Foreclosure; I’ll Still Make a $10,000 Profit!......Page 160
Myth #65: I Should Feel Guilty.......Page 162
Myth #66: I’m an Experienced Real Estate Investor, So I Don’t Need to Do My Homework.......Page 166
Myth #67: I Am Familiar with the House, So I Don’t Need to Inspect It.......Page 167
Myth #68: The House Looks Great—It Won’t Need Many Repairs!......Page 169
Myth #69: This House Is Amazing—It’s Worth a Fortune!......Page 170
Myth #70: I Can Trust What the Homeowners Tell Me.......Page 174
Myth #71: If I Find Myself in Financial Difficulty, I’ll Never Escape Foreclosure.......Page 175
Myth #72: I’ll Be Able to Flip This House in a Couple of Weeks!......Page 180
Myth #73: If I Make Some Repairs Before I Take Possession of the Property, I’ll Save Valuable Time.......Page 181
Myth #74: It’s a Stretch, but I Think I Can Make an Extra $10,000 on This Property.......Page 183
Myth #75: I’m Making Good Money on Real Estate, but I Should Keep My Day Job.......Page 186
Myth #76: I’ve Put So Much Time into This Deal—I Refuse to Let Anyone Outbid Me!......Page 187
Myth #77: Foreclosure Investing Is Just Too Complicated—I Can’t Do It.......Page 188
Resources......Page 190
Sample Forms and Checklists......Page 191
State Foreclosure Guidelines......Page 196
Index......Page 214