One of the phases in which a great investment opportunity is presented in the foreclosure process is the auction. This holds the greatest risks, but also the greatest rewards. Buying Queens NY homes on auction, will present the investor with ample opportunity to make mistakes and perhaps even lose his shirt, but one thing is for sure, he will definitely learn something.

It is not possible for the investor to view the property before the sale, unless he has at some point managed to persuade the home owner to allow him. It may be possible he tried to work-out a short sale deal which did not come off and he has followed the property to auction. Many investors do this; follow a property they have identified through the entire process leading right up to when it is auctioned. In this way they are better armed with knowledge in terms of the price to offer, what, if any liens are over the property and if it is worth pursuing.

If they are lucky and manage to pull of a purchase at the auction they are probably as clued up to the status of the title as the lender is. When buying a foreclosure property at auction, after the deal is concluded the buyer receives absolute title to the property, they do not have to worry about the previous owner coming in and snatching the property out from under their nose as there are no rights of redemption available in New York State. However it is still always wise to have the services of a real estate attorney to hand, just in case.

Purchasing on the court house steps on auction, means the investor has to do their research thoroughly. They have to understand how the bidding process works, if they have to make a deposit and how much it should be. They also need to understand what acceptable methods of payment are and how long you will have to obtain the loan to find the balance of the finance required. Any investor who goes to an auction without pre-qualified finance in place is actually making a mistake, because it might just lose him the deal of a lifetime.

Just remember and be aware that angry homeowners have been known to steal all kinds of fittings and fixtures including small things such as electrical outlet covers and light switches, and large items such as gas heaters and even bathtubs and basins. But they have also been known to deliberately trash homes in order to take revenge on their lender for foreclosing on them. The amount of people doing this could be as high as one on thirty, so this is where many of the risks come into play. Knowing what it will cost to you rehabilitate a property is vital to your success as an investor, particularly if you are going to take the risk for buying a foreclosure property in Queens, NY on auction.

Many people have watched late night commercials regarding the potential for investment in foreclosed property. But is this the real deal? What actually are the facts, and is it possible to pick up cute little dream homes for pennies on the dollar?

Unfortunately advertising always makes thing appear simpler than they generally are, not to say that investing in New York foreclosed homes is not a good way to make money, it actually is. The truth of the matter is that homes are foreclosed upon because of the failure of a home owner to pay the required monthly repayments demanded by his mortgage loan. After his failure to pay three consecutive months worth of these, the lender institutes a notice of default, then legal foreclosure action. This places the home owner in a predicament where he and his family are going to be evicted from their home and have to seek alternative accommodation, and he loses his credit record. This is regardless of whether he has not paid his mortgage because of illness, death of a family member, unemployment, divorce, or simply because he could no longer afford it due to increases in interest rates. Not such a pretty picture is it? Unfortunately in the US at present this is very much a fact of life and though foreclosure laws differ from state to state the outcome is inevitable. The home owner loses his home!

While on one hand it may appear to be callous that investors are benefiting from someone else’s misfortune these are the facts. If a borrower lends money for a mortgage loan they are indebted to pay it back or risk the chance of losing their home. The one good thing is that the foreclosure market provides investors with a fantastic opportunity to make profits, and these homes are great investments. Although like the infomercials say, they are not sold on pennies on the dollar, good discounts can be negotiated with lenders and this is what makes them such worthwhile investments.

Investing in foreclosed homes means you are investing in a property which is already owned by the bank. This makes them a safe investment as all the processes and procedures have taken place, and while the potential for discounts is lower, so is the potential for risks. There are plentiful New York foreclosed homes for sale; it is a super state to live in as well as a great place to invest. The demand for rentals is higher than ever now that so many foreclosures are taking place, and this ensures that the wise investor will be able to rent out an investment property which meets all his expenses and creates positive cash flow for him.

Then again, for the first time home buyer, investing in foreclosed home is also key to success, chances are that buying a home which is cheaper than he is able to afford will mean that they don’t see any foreclosure filings coming their way in the near future.

In New York foreclosures for sale it is important to note that although non-judicial foreclosures are allowed they are rarely if never used. And although according to the law the timeframe for foreclosures is 120 days this also never happens it is certainly more like 12 – 19 months and even longer in many instances.

The lender is compelled to sue the borrower in a court of law using the Judicial foreclosure process and New York is a big state, the wheels of justice turn very slowly. Once a judgment of foreclosure has been obtained a referee is appointed to determine how the property should be sold and at what price. It is the period between the lis pendens being served and the actual court action which takes a very short while, generally about 20 day. However once the summary judgment for foreclosure has been granted and the referee files their report, the court will confirm the report and enter a judgment of sale and this is the period in the process which takes such a long time to process.

The fact that it takes so long to acquire a judgment of sale in a New York foreclosure does grant the home owner some breathing space to sell the property. However as a summary judgment of foreclosure has been issued, they would only be able to do this with the permission of the lender in the short sale. A home owner who is in default and has a foreclosure pending cannot of his own volition sell the property.

The short sale has the effect of placing the lender, the borrower and the potential investor in a win-win situation. In this way the home owner will not have to endure the full foreclosure process, the lender will get as much money as they possibly can out of the debt owed to them, without having to endure months of financial loss, and the property investor generally gets a good bargain. Another added benefit of the short sale is that the foreclosure process is stopped once this has taken place and home owner walks away with a credit record which is relatively in tact. In the case of a foreclosure being completed to its fullest extend the credit record of the home owner is irretrievably damaged for at least the next three years.

Short sales are not governed by any specific laws or statutes; they are merely well accepted business practices in this time when foreclosures are on an ever steady increase. For any new investor, new home buyer or first time home buyer who would like to venture into the foreclosure market to purchase a property. Never overlook the possibilities of a short sale, they can be extremely promising, and the beauty of it is, it’s somehow humanitarian as well, it helps the home owner to save something of their credit record, and sometimes even allows them to walk away with a little money in their pocket.

The term distressed property may hold connotations for some investors that means the property is in such a bad state of repair that it may note even be salvageable. However this is not necessarily true; and any investor looking for property in New York foreclosure houses would be wise to ignore this description and look a little further into facts surrounding the property.

Distressed property is a slight misnomer, because it often refers to the fact that the property has a clouded title, the actual physical state of the property may in be very good repair. When one thinks “distressed” one thinks that the roof is probably falling in and the plumbing has been stripped out. Never believe that this is the case, although on closer inspection there are often times when the description will prove correct.

The word distressed in real estate parlance mans a property which is either structurally damaged or is damaged legally. New York foreclosures are increasing despite government intervention and it looks as though this situation is not going to change for a while to come. Although this is seriously bad news for home owners who are already struggling to avoid foreclosure, it presents a fantastic opportunity of people who have the money to invest in New York City NY foreclosure houses.

Investors does not necessarily refer to expert real estate pundits, it refers to individuals who are keen to invest money in property for flipping, rehab or wholesaling, it means individuals and families who are looking for a new home and it means first time home buyers. The traditional property market is swamped with overpriced real estate that no one can really afford so foreclosure property makes a good alternative and great discounts can be negotiated.

Lenders do not want more foreclosures on their inventories and try as they might to avoid this scenario it is all too often inevitable. Too many foreclosures on the inventory of lender points to bad lending practices and this is unacceptable to share-holders as it affects the bottom line, and banks are after all in business to make a profit on lending money, not on playing landlord.

Banks classify these properties as being distressed and this is why the investor should never be put off by the title, it is merely a way of referring to them. Potential buyers should look more deeply into the reason why a property is being classified as distressed before they write it off as a potential investment or they could miss out on the deal of the century. By the same token, never be disappointed if you do get to look at New York City NY foreclosure houses, and they are truly physically distressed, this often happens. However if it is just a case of cosmetic repairs and the installation of new carpets and appliances you could be onto a winning ticket, so overlook these and you might well be on your way to owing a property which cleans up beautifully.

Learning to become a master negotiator when buying New York foreclosed homes for sale, is key to success in the real estate industry. First you have to understand about the foreclosure process and how negotiation helps in achieving discounted prices.

Firstly the home owner buys a house and then they become unable to make payments on their mortgage repayment. This is attributed to a variety of causes but the main one blamed at present is sub-prime loans, ARP’s and bad lending practices. However there are any number of other causes that can bring this state of affairs about and this includes, divorce, illness, unemployment and even a small financial crisis. US households are overburdened with massive credit debt and the smallest thing is able to trigger a home owner to no longer being able to afford to pay their mortgage.

Once the home owner has defaulted on three mortgage payments consecutively, they will be sent a notice of default. If they fail to respond to the notice of default, their lender will notify their legal department that foreclosure procedures must be commenced. When this happens the home owner is once again notified and if they still fail to take note of the fact that something serious is happening, the foreclosure process takes place. The courts give the lender permission to repossess the house and, this is what happens.

Now lenders are not in the real estate industry, they are in the money lending business, they do not want to foreclose on anyone it is an expensive hassle for them, however they have to recover the looses they have made on the bad debt. So they need to sell the property. The foreclosure process takes anything from 12 – 19 months in New York State and sometimes even longer. So the house will not have been taken care of by the home owner, they no longer care what is going to happen to the property as they know that they are not going to be the owner for very much longer.

Once the property is taken back by the bank if there is no bidder at the auction willing to meet their price, it becomes their problem. The previous owner is evicted and the house stands empty, it is subject to vandalism and may have already been subject to “buyers revenge” so it is looking shabby if not downright derelict.

This is where becoming a master negotiator plays a role. If you identify a property and want to buy it from the bank, they will have a price they want for it. However if it is in need of serious repairs you negotiate with them for a discounted price because you have to carry out much needed repairs, and this is where you as an investor make your profits.

There are numerous New York City NY foreclosed homes for sale and learning to be a master negotiator will ensure your success in this industry.

Bank foreclosures in New York, are pretty much like the rest of the country, on the increase! It is for this reason that potential investors are buying into the idea that money can be made from buying foreclosures, fixing them and reselling them, keeping them for rental or investment purposes or even living in them as a home.

For new investors finding out where to find these properties might be a problem, however there are many ways to skin this cat. The first place to look is where everyone looks for everything first in these modern times, in New York bank foreclosure listings on the internet. This is not the only resource however, the courthouse is a great place to look, but it is a cumbersome process. Looking at the lis pendens notices in news papers is also a good option, but then again you are going to have to wade through tons of properties and won’t really know if they suit your investment criteria.

Using online listing services a potential property buyer is able to detail exactly what their investment criteria are and the powerful search engines used, will weed out the wheat from the chaff on his behalf. These listing will be part of a multiple listing service where anything and everything available in this property market will be listed. Not only will bank foreclosure listing be available on an MLS, but HUD houses, VA houses, IRS houses and all other government agency owned foreclosed property. It provides a complete database of all information pertaining to foreclosed property, where it can be found, what it consists of and most importantly what price is required.

By means of an online New York bank foreclosure listing, a property buyer is able to identify which houses suite his investment criteria and short list them to see which he would like to pursue. Being a subscriber to an online listing service which is linked to an MLS also enables the potential investor to stay one step ahead of the pack. Believe me there are a lot of people out there making a great deal of money in the foreclosure market, so I won’t lie to you and tell you there is no competition. There is plenty of this and being able to stay ahead of them is vital.

Another important aspect for the potential investor is being pre-qualified for finance. It is a completely ridiculous to subscribe to an online listing service if you do not have the finance to back you up. As soon as a good bargain is found you have to be able to act fast. Being pre-qualified for finance it the only way to be in the lead in this market. Good bargains in New York bank foreclosure listings are snapped up at an alarming fast rate, and you don’t want to be left eating the dust of another investor who is only one step ahead of you.

Buying New York foreclosure homes in the current real estate market provides a great opportunity for investors to obtain low priced homes or other real estate. Anyone who has the fund to invest and a good credit rating is able to enter this investment market and let’s face facts, it looks a whole lot better than investing in the stock exchange at present.

Foreclosure homes and other property provide a genuine means of generating good and in many instances very profitable returns on investment. Government agencies, banks and other lenders have a great amount of this real estate in their inventories; they are required to manage these and are not in the real estate industry.

Many are allowed to fall into serious disrepair, but as long as this is only cosmetic, never turn down the potential of a house that needs appliances to be replaced, a lick of paint and a little landscaping. This can be achieved relatively easily and fewer products allow such a great return on investment.

As with any method of investment, buying New York foreclosure homes requires knowledge and research. The real estate industry is presently in a buyers market and many people are taking advantage of this fact. The more you know and the better equipped you are then the better you will be able to tap into the market and get in ahead of someone who knows a little less than you do.

You must understand that not every piece of real estate you come across is going to be a wise investment. Homes that are run down but are in a good neighborhood which shows growth potential are generally the most sound place to invest. Of course to make a profit they have to be sold at less than market value, but discounts are easy to negotiate when a property is run down, and as long as no structural repairs are required and the previous owner has not poured cement down the toilets there is some potential to make a return on investment.

Understanding the financial condition of foreclosure homes is also vital to success. You have to determine if the property has a clear title, as if there are liens and other expenses attached to the title this could work out more expensive in the long run. No one wants to buy real estate which carries another owners’ financial burdens. Buying a real estate owned (bank owned) foreclosure will generally preclude this, however if you are unsure a title search needs to be conducted.

Make use of listing services which provide accurate, up-to-date and complete information, and make sure that you have pre-qualified loan funding to make the purchase. If you don’t have this in place another investor is going to snap up that great bargain you found before you know it. Being able to act fact will lead to success and the seller is not going to wait while you arrange finance.

REO’s as they are more commonly known are bank owned or real estate owned property. This means that the lender has foreclosed upon a property owner due to their failure to repay their mortgage loan and this is happening more and more these days despite the fact that the Federal Government has tried to intervene. Queens County NY foreclosed homes are no exception and these too are on the increase.

The foreclosure process takes a long time in New York and is incredibly expensive as certain procedures have to be followed. However the process is inevitable and eventually the home owner will find himself no longer the owner of his property. This process presents three investment opportunities for property buyer. The first being buying in pre-foreclosure, the second at auction and third, is when the auction sale is over and no bidder met the price the lender had set on the property and it becomes the property of the lender by default.

At this stage the property foreclosure procedure is completed and it becomes real estate owned (REO). While many lenders farm these properties out to real estate agents to market and sell for them, others are not so actively involved and many of these homes fall into disrepair. There is also the chance that the previous owner if he has been handled badly, might partake of some revenge damage.

In some instances this may be quite serious while in others not so terribly. Revenge damage has seen owners pouring cement into toilets on their departure and this is a serious problem. But buying an REO will mean that you are able to view the property prior to making an offer. If you are planning to buy the property to fix and resell, some profits can be made, and these are in the low side.

Queens County NY foreclosed homes which are in the pre-foreclosure phase are another story entirely. This is best left to the more experienced investor, or at least if you are new to the business, partner with someone who knows what they are doing. While the risks are far greater, so are the rewards. If you are seeking investment property which will grow in value for resale, this could be the route to take as the profits will be better.

But you had better know what you are doing along the way. During this phase of the foreclosure, a short sale is also able to be negotiated and you will need to work with both the home owner and the lender. The third phase is the auction and this is even more of a risky prospect.

However the safest possible bet when looking at buying Queens County NY foreclosed homes is the REO. All contingencies are taken care of and it is really just like buying a property on the traditional real estate market. It is quick and simple and all you need is to have your pre-qualified finance in place.

Many people who are keen to invest in the real estate market are beginners, and they can become confused as to why exactly they want to get involved. There may be a dilemma regarding which area they wish to concentrate most in and this causes problems.

It is not just a simple matter of either or, there has to be some sort of delimitation criteria which falls in lines with the long term goals of the investor.

The two avenues which may be taken when investing in Nassau County bank foreclosures have different goals, one is to make large sums of cash money and the other is to grow a respectable income year on year. They choice of which route to take is personal for each real estate investor and some take both avenues at the same time.

Flipping property is a modern terminology which is used to describe the purchase of a property cheaply, and then reselling it quickly. This has to be done quickly if it is to be a success.

Investing on the other hand is buying a property cheaply, fixing it and keeping it to use as a rental to make money in the long term by growing equity, and rehabilitating or rehabbing is the term used for buying property, fixing it and then selling it.

Flipping entails wholesaling and rehabilitating property and is able to offer large sums of cash money at irregular intervals. Owning a property and renting it out offers the ability to make steady income on a very regular basis.

If you consider that foreclosure is a triangle, with investing and rehabbing as side edges of the triangle, then wholesaling is the base of the triangle.

It is the basis of real estate investing and this is what will ensure the investor receives large amounts of money at regular intervals. The triangle illustrates how it is ideal to start with a whole sale business then diversify into both investment and rehabbing.

By these means you will be able to have large amounts of cash to use for capital and make a success of flipping for large sums of cash and investing for rental income.

Flipping or wholesaling is the best possible route any investor can take to ensure that they have large income streams every 30 to 45 days. Flipping is considered to be one of the more interesting aspects of investing in real estate.

There are ample bank foreclosures available for flipping, and many people who are interested in financing these kinds of projects.

Wholesaling just happens to be a hassle free method of making a good profit in the shortest possible time frame. There is far less work involved and the time spend rehabbing a property allows to less time to wholesale it.

The absolute clue to what to do best lies in speed the faster you are able to buy and sell the more money you make and this is a very simple equation.

In New York foreclosures, knowing the law makes a difference for anyone who wants to invest in this market. In fact for anyone wanting to invest in foreclosures in any state knowing the law is vital. The foreclosure law Nationwide follows pretty much the same footsteps, however from state to state and even from county to county it varies a little.

Smart investors make sure they know what they are in for when they enter into investing in New York foreclosed homes, or any other foreclosed homes for that matter. For starters in New York both judicial and non-judicial foreclosures are allowed. The primary instruments for security are the Deed of Trust and the mortgage an the timeline is typically 120 days although in New York I have seen foreclosures which can take 18 – 24 months to wrap up. There are no rights of redemption and deficiency judgments are allowed.

Now if all this sound like legal gobbledy-gook to you, it is not really, it is all quite simple. In a Judicial foreclosure the lender has to take the matter to court to complete all the processes which need to be put in place and in a non-judicial foreclosure they don’t. An independent trustee is appointed who may sell the house on auction if the home owner defaults on their mortgage repayments.

Primary instruments for security are the legal documentation which decrees how a loan is paid back to the lender and what happens if the borrower defaults. If the borrower has a mortgage then a Judicial foreclosure process is required, if the borrower has a Deed of Trust then a non-judicial process is generally followed, and if the deed of trust contains a power of sale clause the trustee may auction their property in the case of a default, without the owners’ permission.

Default judgments are judgments which allow the lender to recover any shortfall in the debt owed by the home owner after the sale of the property has taken place and rights of redemption is the legal recourse that a home owner may or may not be granted to recover their property after it has been sold on auction. Of course anyone granted rights of redemption would have to be able to come up with the money owed to the lender as well as all legal fees and other costs and in some instances this can be for a period of as little as 10 days after the sale of the property, it as much as 1 year after the sale of the property.

In New York no rights of redemption are given, therefore any investor in this state would not have to be concerned about an irate home owner paying back all the money he owes to the lender and coming down on him to reclaim his former property. These are just a few of the very basics of foreclosure law, but they must be well understood by anyone becoming an investor in New York foreclosed homes.