New York City Foreclosed Homes for Sale – Becoming a Master Negotiator

Learning to become a master negotiator when buying New York City foreclosed homes for sale.

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.

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Foreclosures for Sale Oct 23rd, 2009

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