What is the number 1 obstacle when trying to buy and flip houses that are going into foreclosure??
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Yes, it is that easy. The trick is being there first with the highest offer. I guess I would say the hardest part is getting enough information on the house to ensure there will no hidden costs that could turn your profit into a loss. In the low-mid range market you will probably see a bit of damage to the home. If the home is very old there could be costly repairs. There could be issues with the neighborhood etc. Getting all of this information in time to spring on the property before it is gone if the numbers add up is the key. Also, most banks won't just let it go right away for the defaulted loan amount. They will try to get as close to market value as they can. They won't wait very long for it however and will entertain offers.
Yes it can! I wish this was happening in my area. The #1 obstacle is finding the foreclosures. It's not like it used to be. There used to be a HUD house listing, now you have to search the foreclosure list in the paper, and take cash to an auction.
The first home I bought was through HUD, and it was no different than a regular real estate deal, except we had to do a closed bid.
Now you show up with cash. Not everyone has cash on hand. That is just a little scarry for most.
No, even if you found someone so horribly gullible as to sell you the house for that price, sooner or later someone would clue them in, and they could sue you and probably would win. Obviously they want to get as much out of the house as possible, before allowing the bank to step in.
The biggest downside of buying houses that are actually in foreclosure are that the residents often trash the place on the way out. Oh sure, the bank can go after them for doing that, but they usually don't, nor do the buyers. Well, unless they REALLY trash the place and leave a heap.
If you find anyone dumb enough to allow that amount of equity to disappear through foreclosure, please give them my name. I would outbid you in a flash. In real life, this delinquent mortgage will be taken care of before this house actually ends up in foreclosure.
You might also want to check if that $75,000 mortgage is the ONLY mortgage on the property. There may be multiple mortgages with one one mortgage holder pursuing foreclosure. No, it's not really this easy.
If it where that easy , you wouldn't be the only one interested. If your planning on buying it from the current owner, good luck . won't happen. not at that price. So you'll have to take your chances on the steps of the court house.Then of course you have the eviction process and clean up after the irrate homeowners are finally kicked out. I've
actually seen house that where gutted in situations like this, they do it for spite. So you may want to be aware that you will probably have to invest in a total remodel as well.
Good luck , hope it works out for you.
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