I’s that easy. At least that is what the speaker said at the “How to Make Money in Foreclosures” seminar offered in Northern Virginia this weekend. Whipping out a twenty dollar bill and asking for a ten in exchange he began to explain if you are decisive you can make money in today’s foreclosure market. Of course to understand how to do that you need to part with your own hard earned money and come to the BIG THREE DAY seminar that would give you all the details of their great program. Today we will tell you all the great stories of how other people just like you made thousands of dollars on flipping foreclosures.
First all the title of the seminar is wrong as it focuses on acquiring pre-foreclosure properties not foreclosure properties. There is a difference. A pre-foreclosure property is one where the mortgage holder has given notice to the homeowner that if they don’t catch up on their over due mortgage payments in the next 90 days then they will take the house from them. A foreclosure property is one where the mortgage holder has already taken the house back from the owner and is now looking to sell.The seminars suggest you buy a property that has just had the pre-foreclosure notice announced (via courthouse records or online services) make an offer to purchase the property, assign the contract and then sell it before the hammer falls from the bank or auction company. They suggest that you get the owner to sign a quit claim deed over to you and then you flip the property for market value.
Not mentioned during the seminar are that most loans made in the last 5 years have a “due on sale clause” so when the current owner signs the deed over you have to be able to come up your own mortgage on the property and if the property was purchased within the last three years the amount owed may be more than today’s current market value.
Looking around a room full of people you could see the some of them being sucked in to the get quick rich mentality being touted. This is the same mentality that many of the owners of homes now in foreclosure had. Instead they own a home they can’t sell and have ruined their credit for the next 10 years. Don’t get sucked into thinking that the foreclosure market is the next get rich quick scheme. If you want to invest in real estate then talk to a financial advisor, an agent and an attorney about the right way to invest in real estate.
This isn’t the market for FIND IT*FUND IT*FLIP IT*
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