Foreclosure Myths: 77 Secrets to Saving Thousands on Distressed Properties!

Table of Contents

Foreword   Dr. Gary Lacefield     xv
Acknowledgments     xvii
About the Authors     xix
Introduction     xxi
Getting Started     1
I'm Taking Unfair Advantage of Someone Else's Misfortune     1
Foreclosures Happen Only in "Bad" Neighborhoods and During Economic Downturns     5
Foreclosures Are Always the Result of Financial Irresponsibility     7
The Average Person Can't Find Foreclosures-You Have to Be an Insider     9
I Need a Lot of Money to Get Started     10
If Foreclosure Rates Are Rising, Buying Doesn't Make Sense Because There Are Too Many Homes Already on the Market     11
The Process Is Incredibly Time Consuming; There's No Way to Get Started If I Already Have a Full-Time Job     13
I Have to Be an Expert     15
Real Estate Agents Won't Help Me with Foreclosures-There's Nothing in It for Them     16
I Can Do This by Myself     19
The Foreclosure Process     23
The Process Takes a Long Time     24
I Can't Get It-It's in Bankruptcy     26
I Can't Help Out the Homeowner     27
They'll Save the Property, and I'll Be Out My Time and Money     30
They Can Still Cancel the Sale     31
I Haveto Wait Until It's Listed with a Real Estate Agent     32
It Was Published in the Paper, So I Can Buy It Now     33
I Have to Wait Until the Auction to Buy the Property     34
If I'm Not the High Bidder at Auction, I Can Forget Buying the House     37
Finding the "Right" Properties     41
Every Foreclosure Is a Good Deal     42
I'm Buying a Home at the Foreclosure Auction     45
Courthouse Auctions Are the Only Source of Foreclosure Properties     47
Real Estate Agents Always Have First Crack at the Good Deals     50
I Can Find Better Deals Outside My Own Area     51
Foreclosed Properties Are Always Trashed and Need Extensive and Costly Repairs     53
Something Else Is Wrong with the Property If It Was in Foreclosure     55
I Don't Need an Inspection     56
I Can't Get Inside, So There's No Way for Me to Estimate the Property Value     58
Never Bid on a Second Mortgage     60
Analyzing the Deal     63
I Found the Opportunity Too Late-There's Not Enough Time     63
I Found the Opportunity Too Early-I'll Probably Waste My Time     65
I Can't Get a Good Deal Through a Real Estate Agent     66
I Can't Get a Good Deal from Bankruptcy     68
I Can't Get a Good Deal on a Government REO     70
I Can't Get a Good Deal from the Lender     73
The Purchase Price and My Fix-Up Costs Are the Only Costs I Need to Consider     77
I Should Adjust My Bidding Strategy Depending on How Many Bidders Show Up and How Eager They Seem to Be to Purchase the Property     80
It Doesn't Matter Where It's Located; Since I'll Pay Well Below Market Value, the Location Isn't Important     82
I Shouldn't Bring in Experts to Help Me Analyze the Deal; the Fewer People Who Know It's Available, the Better     85
Financing the Property     87
Interest on Loans from Private Investors Is Too High     87
Lenders Don't Want to Deal with Little Ole Me     90
Lenders Won't Be Willing to Talk to Me Until I Have a Deal on the Table     91
I Should Use as Much of My Own Money as Possible     93
I Can't Use FHA or VA Financing     94
I Can't Use a Home Equity Loan to Finance the Property, Since I Don't Own the Property Yet     95
Since the Property Is Already in Foreclosure, I Can't Assume the Owner's Loan     97
The Property Has to Be in Good Shape to Get Financing     99
Taking on a Partner Will Merely Cut into My Profits     101
Securing the Property     103
Once I Purchase the Property at Auction, I Can Take Immediate Possession     103
Only Real Estate Pros Are Allowed to Attend Real Estate Auctions     106
There Will Be Lots of People Bidding against Me     107
The Higher the Bidding Goes, and the More People Bidding, the More Likely It's a Great Property     108
I Won't Be Able to Get Good Title to the Property     110
I'll Have to Pay the Back Taxes and Insurance     113
I Can't Force the Previous Owners to Vacate the Property     114
I Don't Need Insurance Until the Previous Owners Move Out and I Take Possession of the Property     116
Cashing In!     119
I Need to Finish Renovations Before I Sell     119
The More I Put into a Property, the More Return I'll Get     121
I'll Save Money and Make More Profit If I Make All Repairs and Upgrades Myself     126
I Can't Make a Profit     128
I Won't Be Able to Sell It-They Couldn't!     129
I Already Have a Home; My Best Bet Is to Flip the Foreclosures I Purchase     132
The Property Will Be Easiest to Flip When It's Market Ready     134
It's a Foreclosure; I'll Still Make a {dollar}10,000 Profit!     135
I Should Feel Guilty     137
Avoiding Disaster     141
I'm an Experienced Real Estate Investor, So I Don't Need to Do My Homework      141
I Am Familiar with the House, So I Don't Need to Inspect It     142
The House Looks Great-It Won't Need Many Repairs!     144
This House Is Amazing-It's Worth a Fortune!     145
I Can Trust What the Homeowners Tell Me     149
If I Find Myself in Financial Difficulty, I'll Never Escape Foreclosure     150
I'll Be Able to Flip This House in a Couple of Weeks!     155
If I Make Some Repairs Before I Take Possession of the Property, I'll Save Valuable Time     156
It's a Stretch, but I Think I Can Make an Extra {dollar}10,000 on This Property     158
I'm Making Good Money on Real Estate, but I Should Keep My Day Job     161
I've Put So Much Time into This Deal-I Refuse to Let Anyone Outbid Me!     162
Foreclosure Investing Is Just Too Complicated-I Can't Do It     163
Appendix     165
Resources     165
Sample Forms & Checklists     166
State Foreclosure Guidelines     171
Index     189