Louisiana Foreclosures For Sale

Posted in Foreclosures For Sale, October 20th, 2008 |

In order to prevent going through the process of purchasing Louisiana foreclosures for sale, it is possible to purchase property directly from the homeowner in a pre-foreclosure sale. In order to achieve a pre-foreclosure sale it is vital that the investor knows what he is doing and has properly constructed research. It is not an easy way to purchase property in default and there are many associated risks, but if the investor is accomplished there are also associated rewards in terms of profits to be made.

It may not be easy to actually arrange a meeting with a homeowner in the pre-foreclosure phase, but if by chance the investor does happen to achieve this they need to apply commonsense techniques in order to achieve success. It is vital to appear casual, and be sympathetic. Determine if the homeowner requires cash and it seeking a way out of his financial bind. Try to determine if the homeowner is going to go bankrupt, and ask if it would be possible to check out the mortgage documents. Ask what the loan amount, interest rate, monthly payments and taxes are on the property. Also if possible review insurance documentation and try to obtain as much relevant information as is possible. The investor should also inquire if there are any judgments and liens over the mortgage that the homeowner is aware of.

Request an inspection of the property and never comment on the homeowners lifestyle. Point out physical defects in the condition of the property, and items that require major repairs. If possible make use of an inspection checklist where this information can be recorded and estimated costs of repairs noted. Never make promises to the homeowner, it is far too early in the proceedings to event estimate what the investor might be able to do to assist the homeowner. A careful evaluation must follow the first meeting and a date for a second meeting made if possible, and if the investor is still interested in purchasing the property. You can explain to the homeowner that by selling the property in pre-foreclosure, it can prevent the Louisiana foreclosure for sale process from occurring.

This might be a point of interest to the homeowner and once the property has been foreclosed on, his credit rating will suffer major damage.

Prepare your offer by determining the net equity in the property, less the default, lien and repair amounts. Negotiate with any lien holder(s). it may be possible to satisfy the lien for as little as 20% of its net value, as the chances are that the lien holder will lose everything when the property becomes a Louisiana foreclosure for sale. Buying the lien out will place equity into the property and this means more money in the pocket of the investor.

All cost must be added into the calculations if the investor intends flipping the property in a profitable resale.