Buying Real Estate Foreclosures Book

Table of Sample Forms, Illustrations, and Checklists     xi
Preface     xv
Acknowledgments     xvii
Introduction     xix
Understanding Foreclosures     1
An Overview of the Legal Procedure in Foreclosure Actions     3
Mortgages and Deeds of Trust     5
Judicial and Nonjudicial Foreclosures     9
Finding the Foreclosure Statute in Your State     14
The Soldier's and Sailor's Civil Relief Act of 1940     16
The Three Opportunities for Purchasing Foreclosures     16
The Basics of Buying Foreclosures at the Auction     19
A Day at the Auction     21
Warning: Peculiar Purchase Ahead     27
Finding Upcoming Foreclosure Auctions     31
The Basics of Buying Foreclosures after the Auction-from Banks     35
Defining Bank-Owned Properties     37
Redefining Bank-Owned Properties     38
A Lender's View of Bank-Owned Property     39
An REO Purchase versus a Bank Auction Purchase     41
Finding REOs     42
Preparing Your Offer     44
Negotiating Strategies That Help You Cut through the Red Tape     47
The Basics of Buying Foreclosures after the Auction-from Federal,State, and Local Government Agencies     49
Defining Government-Owned Property     51
Finding Government-Owned Foreclosures     51
The Basics of Buying Foreclosures before the Auction     57
Understanding the Defaulting Owners     59
How You Can Help     60
Negotiating with Defaulting Owners-When the Property Has Equity     61
Negotiating with Defaulting Owners-When There Is Negative Equity (a.k.a. "Short Sales")     62
Steps in a Short Sale     66
Finding "Pre-Auction" Foreclosures     66
Contacting Defaulting Owners     67
Additional Strategies and Tips for Buying Pre-Auction Foreclosures     70
Buyers Beware: Has Your State Adopted a Home Equity Theft Prevention Act?     71
Clarifying Government "Acts" of Kindness     72
Financing Foreclosures with Traditional Real Estate Loans     73
Riddle for Buyers     74
Calculating Your Foreclosure Budget     75
The Burden of Proof     77
Decisions, Decisions     78
Types of Loans     81
Comparison Shopping for the Best Lender     88
Key Questions to Aska a Lender     89
Creative Strategies for Financing Foreclosures      95
Foreclosure Purchasers with Limited Cash and Good Credit     97
Foreclosure Purchasers with Limited Cash and Tarnished Credit     102
Foreclosure Purchasers with a Lot of Cash and Good Credit     106
Foreclosure Purchasers with a Lot of Cash and Tarnished Credit     108
Equity Sharing: Buying Foreclosures with a Partner     109
How It Works     111
Why It Works     111
The Owner-Occupant's Goals and Challenges     112
The Investor's Goals and Challenges     112
Comparing Purchase Details and Finance Costs     114
Equity Sharing to the Rescue     117
Contract Terms to Agree Upon     119
The Risks Involved in Equity Sharing     124
Equity Sharing for Parents and Children     125
Equity Sharing for an Investor and a Contractor     127
Finding a Partner for Equity Sharing     127
Equity Sharing Helps People Achieve Their Goals     129
Choosing the Right Property: What You Don't Know Can Hurt You     131
Finding the Right Property     133
Asking the Right Questions     136
Organizing Yourself     145
Inspecting the File of the Foreclosure Action     147
Hiring a Title Expert      147
Asking for the Terms of Sale before Bidding on Foreclosures at Auctions     147
Uncovering Hidden Costs     148
Establishing Property Values     152
Calculating Cash Flow     153
Preparing Your Bid Sheet     157
Organizing Your Prebid Calculations     159
Fine Tuning Your Prebid Calculations     159
Final Confirmation     168
Congratulations! You Are the Successful High Bidder     169
When You Are the High Bidder at the Auction     171
When Your Offer for a Bank- or Government-Owned REO Foreclosure Is Accepted     172
When Your Offer to the Defaulting Borrower for a Preforeclosure Is Accepted     172
Coast to the Closing with These Five Standard Operating Procedures     173
Applying the Five Standard Operating Procedures to Your Particular Circumstances     176
An After-Contract Checklist     181
Now that You Own the Property     183
Steps to Take for Completing the Transaction     185
An After-Closing Checklist     188
Making Repairs to Your Foreclosure     189
Pinpointing Priorities     191
Finding a Contractor     191
Implementing a Competitive Bidding System      192
Implementing a Performance-Based Payment Plan     211
The Big Picture     217
Getting Started Today     219
Follow These Six Steps for Success in Purchasing Foreclosures     221
From Rags to Riches with Real Estate Foreclosures     225
Glossary     227
Index     237