Connecticut Foreclosures for Sale

Posted in Foreclosures For Sale, September 18th, 2008 |

In Connecticut foreclosures for sale there are three types of investment opportunity. The mortgage foreclosure processes consist of the “Pre-foreclosure”, “Auction” and “REO” phases. Each provides its own investment opportunity.

With “Pre-foreclosures” the investor is required to work directly with the lender and the homeowner. In this instance you have to be able to let each participant know exactly what is in it for them. The owner has to make a sale, the lender has to recoup his debt and you have to make a profit, so you aim is to purchase the property at a substantial discount.

In order to be successful with this method you have to locate loans that are in default, evaluate which property to pursue, inspect the property, find out what the property owner needs, determine market value, negotiate with the owner and lender and close on the property, quickly reselling. This is a complicated process that entails a great deal of work but profits can be high if you know what you are doing.

Buying at the auction in Connecticut foreclosures for sale is more than likely the most rewarding of all three methods. But it also ensues the highest risk taking. A Connecticut foreclosure for sale on auction means that the property is sold to the highest bidder. This is a very fast process, where the investor has to bid against the lender as well as other investors, and is the only investment method whereby you are able to really hit the jackpot in terms of savings.

For this process to be successful you are required to conduct adequate research on the properties prior to sale, only pursue investment opportunities that are realistic, be aware of the potential profit and values, determine what price to bid and participate in the auction process. All not quite as complicates as Connecticut pre-foreclosures for sale, but still quite a complex process.

Real Estate Owned (REO’s), Connecticut foreclosures for sale is more than likely the easiest way of purchasing a foreclosed property. This is quite simple because all the red tape on the property has been tied up and it is ready to go. The bank or lender takes possession of the Connecticut foreclosure for sale in order to cut its losses. But the lender does not want the property, they are bankers’ not real estate owners, and they want to move the property as quickly as possible. They are generally the senior lien holder, and this means all other liens are wiped out at auction. A REO has a clean and clear title, and property taxes in arrears will also more than likely have been paid. The property may be repaired by the lender to an acceptable standard or offered to an investor at a discounted price, in lieu of any repairs required.

Each of these three Connecticut foreclosure for sale methods has its pros and cons as well as investment opportunities and rewards. The all have risks involved too, so ensure you have done your homework before making any purchases.