CHAPTER

Why Buy Foreclosures?

Foreclosures come in all shapes and sizes. Any property that has a real estate loan attached to it is a foreclosure waiting to happen. Borrowers get behind in their mortgage payments for all sorts of reasons. What is worse, people can lose their property to a foreclosure without having any real estate loans attached to the property.

If you dont pay your local property taxes, your local taxing authority can place a lien against your property. If you dont pay the property taxes within a certain period of time after the lien is filed, then the local taxing authority sells your property at a foreclosure sale for the back taxes.

You can own your property free and clear (no real estate loans) and be sued. If you lose the lawsuit, your property can be taken to satisfy the judgment. If you cannot pay the judgment, your property will be sold at a sheriffs sale to the highest bidder.

You can be current on your monthly real estate loan payments or own your property free and clear. You can be current on your local property taxes. You are not even being sued. However, you are in trouble with the Internal Revenue Service (IRS). They place a tax lien against your property. Eventually, if you dont work something out with the IRS, they will seize your property and sell it at a foreclosure sale.

All of these foreclosure events create opportunities for you as a real estate investor. From our Quick Cash strategy point of view, foreclosures provide the possibility to flip either the property or the real estate contracts associated with the property. The idea is for you to get in and get out quickly. We are going to show you how to make a profit with no money of yours tied up in the deal.