I know this is a site started by a debt kid who tried to get rid of debt while avoid bankruptcy and fatal damage his credit score. It might appear to be insensitive to talk about foreclosure investing here.
It seems we do not need a vulture investor around here.
But before you usher me out, please let me say the reasons why guys investing in foreclosure situations are not the bad guys, and who knows, maybe one day the former debt kid who lost his/her house in the foreclosure will have a major comeback and pick up a few good investments.
We are not talking about stealing houses from widows and orphans.
A fair deal involves a buyer and a seller who are willing, well informed, and of sound mental capacity to evaluate the deal. In foreclosure situations, it is possible strike a win-win solution in which the distressed seller comes out better and the buyer wins as well. As a whole, the foreclosure investors provide the capital to the market so the distressed will not get stuck with their situation for extended period of time.
There are really three points of entry a foreclosure investor can step in:
- Pre-Foreclosure: Buy the property before the foreclosure auction happens or the property transferred the trustee.
- Foreclosure Auction: Buy the property at the sheriff or the court auctions or after the property is transferred to the trustee.
- Post-Foreclosure: Buy the property from the lender or from the Real Estate Owned (REO) broker.