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Monday, January 2, 2012


Finding the solution to most problems is easy because most people “know” the answer before they begin to solve the problem.  
LISTENING to that ANSWER, however, is difficult. 
So, my suggestion is open your mind and explore ideas beyond your paradigm.
You may say that I digress, but I am just setting you up to capitalize on the opportunities that are before you.  If this scares you, turn the page . . .
SO . . .
It is common knowledge that you can get a great deal if you buy a foreclosed home. 
There are no free lunches, however; and every good deal comes with a price.  Rewards come with risks.  IT IS NEVER TOO GOOD TO BE TRUE.  If it is, turn and run  .  .  .  Run fast.
Foreclosures are a wonderful way to buy an inexpensive home – either as your principal residence or as an investment.  A certain investment in your education will occur along the way.
Hire a Realtor -- An industrious, savvy, full time, educated, short-sale and foreclosure certified Realtor.  This will result in a partnership – you and the Realtor that is WORKING FOR YOU, with you and in your best interest.  Your Realtor can search various MLSs, check public records, do the research, show you properties and generally advance your best interest.
Have your financing in order.
If you are going to pay cash, you will need to show proof of funds when you place your offer.  This means that your money needs to be liquid – not in a CD, not in other investments – in your bank account and readily available.  If you are going to finance your purchase with a mortgage, BE prequalified.  Your very good, full-time, educated and industrious Realtor can give you a list of LOCAL, honest, reputable lenders to choose from.
Avoid Banks.  They have made their bed and they can just lie in it.  They are not interested in you; they are interested in their bottom line.  If their properties are not listed on the MLS, then they do not abide by the same ethical rules and code of ethics that a realtor does.  In other words, you are not protected.  Work with a Realtor.
Private Foreclosures:  If your Realtor is truly industrious and foreclosure certified, they will know all avenues to a foreclosure.  This means private foreclosures.  They will know how to search the public records for you to find homeowners who are on the edge of a foreclosure.  They will know how to find recently foreclosed homes and guide you in that direction.
Be prepared to make a REAL offer.  Investors (the bank, banks, or combination of lenders) expect (and owe it to their stock holders) to sell at market value.  Decide how much the home means to you and make your offer (with your professional, full-time, educated and certified Realtor).  The price you set should be based upon your budget and upon the sale price of recent comparable solds.  If you do your best, but lose it, then you will be able to move on and with good conscience. 
Be prepared to make many offers.  When you learn value – including the estimate of repairs – you will be comfortable making offers within your budget and comfort range. In partnership with your team mate and Realtor, you will learn this.  Yes, a house is a home, and figuratively a shelter that you will live in until it no longer suits your family, financial or future needs; but if the mortgage crisis has taught us anything it is that YOU HAVE TO HAVE AN EXIT STRATEGY.  When moving time comes, you want to be comfortable that selling price will get you what you out and moving forward.
Common wisdom says that we are in for several more years of REOs (bank-owned homes).  If you want to participate . . . 


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