Here are the steps you take to buy a foreclosure property


Foreclosure of Mountain View Property

Here are the steps you take to buy a foreclosure property before the actual foreclosure steps begin:

1. You check your local County Courthouse records and find that a mountain retreat type home is about to go into foreclosure. Its owner is a local businessman whose business sales have been lagging for the past several years. He, his wife, and three children reside in the home.

2. Visiting the property you find it nestled on a plateau in local hills. The home has gorgeous views of wooded landscapes of nearby mountains and valleys through a 270-degree angle. A brook traces a glistening curving white path down the side of the mountain opposite the living room windows of the house.

3. The property is valued at $680,000 by local realtors. A $575,000 mortgage exists on the property and the owner is three months behind on his payments, or $10,500.

4. You agree with the owner to assume responsibility for the $575,000 mortgage and to rent the house to the owner for $1,000 per month for one year. He saves $2,500 per month.

5. At the end of one year you will sell the house to the owner for $800,000. The owner agrees to all these terms because he wants to hold on to his beautiful mountain home. You pay the $10,500 arrears on the mortgage (which you get from your credit-card line of credit). It's WIN-WIN for both of you!

6. If the owner cannot buy the house after one year, you are free to sell it on the open market.

7. The owner gladly accepts all your terms because by doing so he can stay in his home. Further, he has the chance to buy it back from you. After 11 months you find that the property is valued by local realtors at $780,000.

"This real-life example sounds great, you say. "But, what are the negatives? you ask. There are several, namely:

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Note: This article was sent to us by: Elena Ponasis at 03272010

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