INVESTOR’S BONANZA BUT HOUSEOWNER’S HEADACHE

Posted in Foreclosure Homes, General, Pre Foreclosures, May 24th, 2007 |

INTERNET LEAKS INFORMATION

It is reported from Boston that as much as 76% during the first quarter of last quarter fell a victim to foreclosures. Trading in foreclosures mean big gains – buying low and selling high. Foreclosure opportunities are sprouting like mushrooms to the tune of one hundred per day, which often translates into about a thousand each month.

Most of the victims facing foreclosure are behind the 8-ball and are completely at sea. They do not know what to do next. The first stage is that of the beginning of the foreclosure process. In the following stage begins the process of assessing the value of the locality, size of the property and its condition etc. Everything is public on the web. The responses of the owners vary – some are resigned while others are far from happy.

Investors get the word over the Internet and hurry over to make the deal. Sometimes the investors get wind of the matter even before the owners The best time to strike the deal is during the pre-foreclosure period because then the investor can negotiate directly with the owners instead of going via the banks and or waiting for the process of auction to begin.

There are web sites that give training to investors in foreclosure deals. One site claims that they have had 5 million visitors each month! The web sites show in what phase the property up for sale is going through. The question of ethics arises as investors are charged for preying on the vulnerable. But the answer is that this is all part of the game of owning and selling property. It is argued that the investors offer a dignified way out for the owners who are in debt. In fact the investors are giving extra service for all the trouble they take. The harassment of the owners likewise lessens. Nevertheless with the increase of foreclosures and rush of investors one should be careful before losing the roof above your head.

There are two opinions about all information being freely available on the net. On the one hand it gives little protection and privacy but on the other the seller should know into what zone he or she is stepping.

Investing in pre-foreclosures itself is a multi billion-dollar affair per year. Just coaching investors the tricks of the trade is spinning money.