Foreclosures

How to buy foreclosures, bank owned and short sale properties

Buying or investing in properties that are in the foreclosure process is your wealth building opportunity!

Did you know that NOW is the best time to invest in foreclosure properties?

Many people are interested in investing in properties that are in the foreclosure process, but are unsure of the steps to take to get started. 

 The market conditions of today have converged to create a “Perfect Storm” of opportunity for the savvy real estate buyer or investor.  The opportunity is there to purchase your next property at discounts of 20-50% under today’s market value.  Never again will the same market conditions exist that precipitated our current liquidity crisis, stock market crash and subprime mortgage meltdown.  The opportunity to take advantage of this unprecidented market is now!  If you are qualified, committed and motivated we will provide you with an inventory of efficient and profitable assets to meet your short and long term financial objectives.

Come and learn how to “Never Pay Retail” again and purchase real estate at 50-80 cents on the Dollar!

Some of what we will cover in the workshop

• The foreclosure process and timeline
• Recent sales data and market statistics for the region
• Foreclosure trends and market analysis
• Lien priority in Washington State
• Investment Strategies to maximize your return on investment (ROI)
• The importance of establishing an exit strategy before you buy!

  

Foreclosures Surge in March

A recent article on MSN Money describes the surge last month in foreclosure activity around the country.  March 2009 saw a 46% increase over March 2008. 

Much of the increase is attributed to lenders lifting temporary moratoriums and resuming legal actions against delinquent mortgage holders.

To read the full article click here

Locally, the total number of properties in some stage of foreclosure has been steadily increasing the past several months.  Currently in King, Snohomish & Pierce county there are a total of 7,877 homes in foreclosure.

King County Foreclosure Auction Statistics for December 5th 2008

Of those 203 properties:

• 11 were picked up by 3rd parties at the auction
• 51 reverted back to the bank
• 141 were cancelled/sale off

Since we started the week with over 300 properties on the list, there were aslo over 100 postponements granted as well.

We specialize in foreclosure auctions, short sales, REO/bank owned properties

Will Dec. 5th 2008 be the Biggest Foreclosure Auction Ever in King County

The foreclosure auction set for December 5th in King County, Washington is set to be the largest in County History.

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Fannie Mae & Freddie Mac Temporarily Suspend Foreclosures

Last Thursday the twin mortgage giants Fannie Mae and Freddie Mac announced they were suspending all foreclosure sales and pending evictions beginning on November 26th through January 9th 2008.  Shortly after the announcment I started receiving calls from associates and clients asking me what affect I thought this would have locally on foreclosures.  My answer was not much at all.  Even though Fannie Mae and Freddie Mac own neary half of all loans originated in the U.S., the number of loans in their portfolio that are in foreclosure is actually very small.  It only represents about 2-3 percent of their entire portfolio.

The end result is that approximately up to 10,000 homeowners will have their foreclosure stalled for a few weeks in order to allow time to work out modifications with them.  For those homeowners, this is certainly good news, especially considering the upcoming holiday season.

Many of the people I spoke to were surprised to learn that so few homeowners would be affected by the announcement.  The reason is simple however, the majority of homeowners in foreclosure took out loans that Fannie and Freddie would never dream of purchasing.  They were the no income, no asset, no credit check loans that are the root cause to our current financial market’s collapse.

And no amount of bailout or releif programs are going to be able to help most of those borrowers.  When they couldn’t verify income or assets in the first place, it is highly unlikely they will suddenly be able to now, and one of the major tenants of all of the announced releif programs are that the borrowers must show they are able to qualify for the new loan terms.

Forbes Ranks Seattle #1 Real Estate Market to Rebound!

Forbes.com recently posted an article listing Seattle as the #1 real estate market in the country most likely to rebound.  An excerpt from the story says “Seattle has a reputation for nurturing brainy industries like aerospace and software. That should help it weather the coming financial storm. Seattle also stays strong because of its vibrant, livable downtown where rents are going up and tenants are likely to stick around.”

It’s nice to know that the people at Forbes and the 700+ real estate professionals they surveyed for this piece echo the same sentiments that we at Real Estate Investment Firm have been saying for several months now.  When you look at the fundamentals of the Seattle area real estate market and the local economy, there is no better place to be to position yourself to make large gains when the turn around occurs.

You can read the entire article here.

Purhasing Foreclosures – Is It Hot Or Not?

Occording the Matt Steel, the owner of Real Estate Investment Firm, “this is the opportunity of a lifetime.”

As reported in a Seattle Weekly article on November 12, 2008, Steel talks about the current foreclosure market and how his company plays a part in it.  Helping thier investors find the “Hot” properties at auction each Friday or helping clients who are behind on their monthly mortgage payments find a buyer, through a short sale, to avoid foreclosure all together.

To see the full article in its entirety, go to http://www.seattleweekly.com/2008-11-12/news/foreclosure-vultures/

Join with REIF in Giving Back to the Community!

GOAL: The primary goal of Toys for Tots is to deliver, through a shiny new toy at Christmas, a message of hope to needy youngsters that will motivate them to grow into responsible, productive, patriotic citizens and community leaders.

OBJECTIVES: The objectives of Toys for Tots are to help needy children throughout the United States experience the joy of Christmas; to play an active role in the development of one of our nation’s most valuable natural resources – our children; to unite all members of local communities in a common cause for two-three months during the annual toy collection and distribution campaign; and to contribute to better communities in the future.

We treat people with kindness and respect, and we give without regard to race, creed, sex, lifestyle, residence, or other discriminatory consideration.

          Real Estate Investment Firm Cares   

                       GENTLY USED COAT DRIVE

Did you know that 90% of homeless adults need a new, warm coat each winter because they have no place to keep one over the summer months? But it’s not just homeless people who need our help; thousands of families are forced to make a choice between buying a winter coat and putting food on the table, or meeting other basic survival needs.

This year REIF Cares want to collect gently used winter coats and distribute them to thousands of men, women, and children who would otherwise go without.

Happy Holidays & a Joyous New Year

REALESTATEINVESTMENTFIRM

16300 Redmond Way, Suite 202, Redmond WA 98052

Please contact LoAn at 425-214-6744 with any questions or for drop-off information & locations. 

Why you should be buying foreclosure properties at the King County foreclosure auction

The month of October has proven to be a memorable one when it comes to buying foreclosure properties at the King County and Snohomish County Foreclosure Auction.  The deals that are available today at the trustee foreclosure sale are the best I have ever seen.

The roller coaster swings of the stock market, the federal bailout package, the collapse of WAMU, Fannie Mae and Freddie Mac and much, much more have created what I can only call the perfect storm of opportunity to buy these properties at discounts of 30-45%.

With such a small amount of liquidity available these days, the investors of a year or two ago can no longer play in this arena.  Since there are no more stated income loans, little or no down loans, etc. many real estate investors are forced to sit on the sideline and a new breed of investor has emerged to capitalize on this unprescendented opportunity. 

Today’s investor is likely to work at companies like Microsoft, Google, and Boeing, etc.  They do not see real estate investing as the path to overnight riches and a lavish lifestyle.  Rather they see real estate investing for what it should be.  What they do see though is opportunity. 

With the banks taking the radical ^{(Yes that is sarcasm)} position that for a person to qualify for a home loan they need to be able the document the following items:

1.  A steady and verifiable source of income (ie. they need to have a job)

2. Verifiable liquid assets (money in the bank)

3. A history of paying back loans (good credit)

many would be buyers and investors have been frozen out of the market.  This seemed to reach its peak during the beginning of October when you had the Dow Jones dropping like a lead balloon and Congress unable to come together at first regarding the bailout package.  This caused uncertainty and resulted in a 90% drop off of properties that get purchased by 3rd parties at the foreclosure auctions.  When 3rd parties don’t buy, the banks in turn end up with even more REO properties and they quickly realize that unless they act dramatically they will end up taking back even more of the foreclosure properties that go to auction.  When this happens the only real remedy the banks have is to stimulate 3rd party interest in the properties again.  The only way they can do that is to dramatically drop their opening bids down to levels that will assure that the foreclosures end up getting bid on at the auction instead of reverting back to the beneficiary.  THIS IS EXACTLY WHAT THEY HAVE DONE!  Lenders have begun to discount their opening bids by as much as 50%.  This equates to several hundred thousand dollars in some cases.

One example is a West Seattle property one of our clients purchased at the foreclosure auction on October 24th 2008.  The foreclosing lienholder was a first mortgage with a balance owed of $636,000.  Late Thursday the lender posted an opening bid of $311,000.  Our client was able to purchase the property at the King County foreclosure auction for $326,000.  The current market value of this custom built 2003 home is $500-550K.  That represents over $200,000 in instant equity for the buyer. 

This is just one example of many in the month of October.  November is traditionally a very busy month at the foreclosure auctions.  Don’t let this opportunity slip away. 

You can register to attend our free workshop, “Never Pay Retail” held every Tuesday at 5:30 in our Redmond office.  There you will learn how you can participate and profit from buying foreclosures at the foreclosure auction.  Sign up today!

If You Want To Invest in Foreclosures – You Need to Understand Lien Priority

Real Estate Investment Firm is a full service real estate investment company dedicated to assisting our clients create long term and lasting wealth through real estate investing. We specialize in Foreclosure Auction Purchases, Short Sales, and REO/Bank Owned properties. We invite you to attend our weekly "How to Buy Foreclosures" workshop held every Tuesday evening at our downtown Redmond, WA office. For more information or to register go to www.realestateinvestmentfirm.com

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