Buying Distressed Real Estate Fresno CA

Real estate turning into a distressed property through being confiscated by the lender or mortgagee in Fresno due to the non-payment of taxes or mortgage amounts (loans) is an unfortunate outcome that no investor wants to happen. Read on to learn more tips on buying distressed real estate.

Future Realty & Mortgage, Life Insurance
(559) 255-1700
2050 N. Winery Ave #103
Fresno, CA
 
Jason Nenadov, Real Estate Agent
(559) 246-8991
1212 Van Ness
Fresno, CA
 
Fortune Associates
(559) 490-2500
680 W. Shaw Suite # 200
Fresno, CA
 
Stumpf and Co.
(559) 222-3058
2045 E. Ashlan, #102
Fresno, CA
 
Pacific Central Management Corp.
(559) 490-5668
6729 N Palm #105
Fresno, CA
 
Buckingham Property Management
(559) 452-8250
2170 N. Winery Ave
Fresno, CA
 
Guarantee Real Estate/Ellen Lorenz
(559) 269-6125
5047 N. Palm
Fresno, CA
 
Diversified Development Group, Inc.
(559) 225-6363
600 W. Shaw Ave., #160
Fresno, CA
 
The Community Housing Council of Fresno
(559) 221-6919
4270 N Blackstone Suite 101
Fresno, CA
 
G.L. Bruno Associates, Inc.
(559) 454-7744
855 M Street 10th Floor
Fresno, CA
 

Buying Distressed Real Estate

Provided By:

Author: Charles Petty

Real estate turning into a distressed property through being confiscated by the lender or mortgagee due to the non-payment of taxes or mortgage amounts (loans) is an unfortunate outcome that no investor wants to happen. However, when it happens the mortgagee or the legal authorities become the owners and the previous owner or the debtor has no say in any matter related to the property. The legal authority, for instance a bank, has all the right to hold back such properties and take absolute charge of it from the owner. These properties are later sold in the market by the bank holding it. The selling price of the property is much less than its actual estimate, but it helps the lender to recover most of its dues, occasionally giving them a little profit too. This is called 'foreclosure' or 'mortgagee-in-possession sale'.

People often think that buying such a property is always profitable. Yes, it is but only if you pay due attention to all its implications before you buy it. There are a lot of things and procedures that are to be kept in mind before investing in such properties. Here's how you can actually invest your money in distressed properties and expect good yields on them.

Searching and locating such properties:

Almost every bank faces such situations and have to resell properties confiscated by it. Keeping track of such banks and searching on the Internet could be important sources of your information. The best thing would be approaching a Realtor who has specialized in such properties. Actually, seeing such properties for yourself gives you a comprehensive idea of the property. You can picture the situations the previous owner was in and situations that can occur. For example, if you assume that after you buy a certain held-back property you would give it on lease, you very well have to forecast the leasing prospect. There is a possibility that the property is not worth renting and that's why the previous owner could not pay the dues . Maybe you would like to live on that property or start a new business there. Again, you would have to evaluate the surroundings and neighborhood for yourself. Probably, it is not that exciting and could be the reason for the previous owner to incur the losses. Therefore, it is important to assess the neighborhood of the property by seeing it for yourself.

Hiring a specialized Realtor:

A Realtor always has the best knowledge about these kinds of deal and can very well guide you on buying such properties. Paying him his commission for the deal is always worth. He knows the true worth of such properties because he has links with lending banks and other financial institutions who hold properties like this.

Analyzing the paper and documents of the properties:

Be very cautious while reading through the documents. The documents will tell you why the previous owner fell back on paying the charges. Secondly, they will give you the outstanding amount details, square feet area of the property, owner's name, what was done on it, etc. These are very important details one mustn't ignore.

Take a second opinion:

If you are in a dilemma about buying such properties, preferably take a second opinion. This could be from a friend, another agent (Realtor) or a Realtor from the neighborhood of the property. This will help you clear a lot of mental cobwebs and come to a definite decision.

Buying the properties:

After you and your Realtor have analyzed the papers thoroughly, you can now negotiate on the price with the authorities who are the new owners of the property, if you are the sole/first buyer. However, if the property is to be bid, the highest bidder would have the right to take it away. Remember, always make your payments in the form of a check. Besides, make sure that the previous owner has no more links with the property and the previous owners or mortgagees have cleared their names from the property and you are the sole legal owner now.

Written by: JS
Date Written: 04/07/08
Reviewer Assigned by: David
Reviewed by: HS
Quality Control: AG

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Quality Control Completed on: 07/07/2008

About the Author:

Virtual Real Estate Investing Experts Kim and Charles Petty have been involved in over 700 real estate transactions in the last 9 years and are the creators of the Ultimate Turn Key Virtual Real Estate Investing Systems for investors all around the world who want to take advantage of the awesome profit opportunities in today’s real estate market. They are the worlds leading experts on Virtual Real Estate Investing.Go to http://www.VirtualRealEstateInvestingProfits.com or call 1-800-311-9228.

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