Foreclosure Sales for Your Future Success

Foreclosure sales occur when a property owner has not made the required payment on his or her mortgage or real estate taxes. The lender, municipal authority, or federal government, decides that the property must be sold to satisfy (that is, pay) the mortgage or tax debt. There are three types of foreclosure sales you can use:

1. Buy directly from the owner before the official foreclosure occurs, but after there has been notice that a foreclosure will occur sometime in the future if the existing debt is not paid within a stated time period.

2. Buy at the official auction on the courthouse steps or at the federal government facility when the property is sold to the highest bidder to repay the debt(s) owed on it.

3. Buy from the lender in a postauction sale a property that was not sold at the auction.

Let's look at each of these ways of obtaining good properties at 25 percent to 50 percent off the going market price.

Buy Directly from the Owner

Municipal authorities list properties on which they have sent a default notice. You can find such listings in your local city or County Courthouse. Each listing gives data on the property owner's name, property address, how much is owed, and to whom.With this info in hand you can:

Visit the owner personally in the property.
Make an offer to assume the debt from the owner.
Allow the owner to stay in the property for a monthly rental fee.
Offer to sell the property to the owner after a stated time period one year, two years, and so on, at a stated price that gives you a profit.
Sell the house after the stated time period if the owner does not buy it.

Let's see how this might work with an actual property you discover is about to be foreclosed.

Your Key Ideas for Building Wealth with Property Appreciation

Real Estate appreciates in value because the price of land, labor, and materials increases as time passes.
Buy preconstruction properties and their price is likely to increase because of the rise in costs as construction proceeds.
Scenic-view properties oceans, bays, lakes, mountains often rise significantly in value during, and after, construction.
Buy the best property you can. It is almost always likely to rise in value appreciate as time passes. You almost can't go wrong!
Use the High-Yield Strategic Appreciation Method anywhere and you have a good chance of earning a large return on your real estate investment.
You can buy foreclosure properties three different ways: From the owner before foreclosure; at auction after foreclosure; from the lender after the foreclosure auction.
REOs bought at postauction may often be your best foreclosure purchase.

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