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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Be well versed in all aspects of acquiring foreclosures. Posted by Ward-CA- on May 19, 2002 at 2:59 PM In Reply to: the best way to get bargain on homes posted by Mary on May 19, 2002 at 11:10 AM : Basically my question is, which of the following is the best way of getting real estate for a bargain and why and why not the others? : * pre-foreclosure : * trustee's sale : * REO's : I really appreciate how quickly the people from this forum responses. This site is very informative and helpful. : Hope to hear from the experts very soon!!! : Regards, : Mary =•=•=•=•=•=•=•=•=•=•= Mary, personally I think you’d want to be well versed in all 4 aspects of the foreclosure game. But to answer the basic question you’ve asked, the greatest potential profit occurs at the trustee’s sale because of the cathartic effect a foreclosure auction has on obliterating any liens and interests junior to its position. That doesn’t occur when buying the property from the owner before the sale. Whatever the owner owes remains for you to grapple with. For the most part, the reason the foreclosing lender got the property rather than being paid off at the foreclosure auction is because their opening bid at the auction was too high to attract a bargain hunter. Thereafter the lender might not have any incentive to bargain if the loan is insured or guaranteed against loss because it’s an FHA or VA loan—or because there’s private mortgage insurance (that insures them against loss). However you want to know how to make a profit in all aspects of the foreclosure game. It reminds me of the versatility and value of being a switch hitter in baseball. So if there’s temporarily too much competition at the auctions you could go door knocking or do junior bene buyouts. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Basically my question is, which of the following is the best way of getting real estate for a bargain and why and why not the others? : : * pre-foreclosure : : * trustee's sale : : * REO's : : I really appreciate how quickly the people from this forum responses. This site is very informative and helpful. : : Hope to hear from the experts very soon!!! : : Regards, : : Mary : =•=•=•=•=•=•=•=•=•=•= : Mary, personally I think you’d want to be well versed in all 4 aspects of the foreclosure game. But to answer the basic question you’ve asked, the greatest potential profit occurs at the trustee’s sale because of the cathartic effect a foreclosure auction has on obliterating any liens and interests junior to its position. : That doesn’t occur when buying the property from the owner before the sale. Whatever the owner owes remains for you to grapple with. : For the most part, the reason the foreclosing lender got the property rather than being paid off at the foreclosure auction is because their opening bid at the auction was too high to attract a bargain hunter. Thereafter the lender might not have any incentive to bargain if the loan is insured or guaranteed against loss because it’s an FHA or VA loan—or because there’s private mortgage insurance (that insures them against loss). : However you want to know how to make a profit in all aspects of the foreclosure game. It reminds me of the versatility and value of being a switch hitter in baseball. So if there’s temporarily too much competition at the auctions you could go door knocking or do : junior bene buyouts. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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