Beach Front Foreclosure: Ins and Outs

When it comes to investing in foreclosure properties, beachfront foreclosure makes an excellent choice. However, before you proceed and invest your hard earned money, you must take into considerations a few things that play a vital role in the success of a foreclosure business. Let me give you a few examples. You must have a strong grasp of market values in your area and must have a thorough understanding of the legal requirements associated with beachfront foreclosure in your state. Again, make sure that you have significant money to invest and you know how to follow up on real property information. These are just a few examples. In fact, there are many such things to consider. In case, you are new to the foreclosure business, and do not have much experience in the field, it is always prudent to spend some time learning and understanding such things. The following information intends to give you a concise but clear overview of what all you need to know in order to make money by investing in beachfront foreclosure. 

Understanding Foreclosure

This is the basic and the most important thing that you should know. After all, you are going to jump in a foreclosure business, so you must have a clear understanding of what a beach front foreclosure is, and what are the reasons that leads to such a foreclosure. Well, it mainly happens because of two reasons – first, helplessly and second, purposely. When I say helplessly, it means when a homeowner is not able to make a timely payment on the mortgage, the property is taken away from the owner by the bank or the lender. Again, sometimes, beachfront foreclosure happens purposely. This happens in a situation, where the cost of the property is no longer sustainable for the owner. In such cases, he/she purposely places the property into foreclosure. 

Approaching the Homeowner

Keep in mind that in most cases, state laws prevent you from approaching the homeowner directly. Therefore, if you are planning to approach the homeowner, you must make it sure if the law allows you to do so. In case, it does not (in most cases, it will certainly not), the alternative way to get the essential information regarding the beachfront foreclosure property is to go into the neighborhood. Contact the neighbors and find out if the homeowner is suspected of being living a low standard life. If so, you must be alert, as it likely means the property is a mess inside and might not be worth bidding on. However, the final decision will depend on your extensive research. 

Beach Front Foreclosure Advertisements

In most cases, the beachfront foreclosure properties are advertised twice - once in the local paper and once at the courthouse. However, in some cases, it is also possible that the advertisements appear only at the courthouse. Therefore, be ready to do a bit of research. The foreclosure advertisements carry various pieces of information, such as homeowner’s name and address, and a legal description of the property. However, the most important information for your consideration is the legal description. Do not forget to visit the office of the Registrar of Deeds in order to find out the Platbook and determine the physical address. Another important consideration is the information about all persons and businesses that have liens against that beachfront foreclosure property. Do an extensive research how much these liens can cost you. Remember, it is not about how small or big are the liens. All that matters is the cost you may have to bear. Sometimes, smaller liens can add up to bigger bucks than the bigger liens and you will be responsible for all. Therefore, research is the keyword while you are analyzing the information in a beachfront foreclosure advertisement.

Understanding Other Bidders 

In order to succeed in any business, you must keep a close eye on your competitors. Beachfront foreclosure is not an exception. Your competitors here are other bidders, who are bidding on the same property. If you are new to the place and they are local, you need to be more alert because they might know something that you do not. Again, analyze what other bidders in the market are doing. Try to learn from their successful strategies as well as mistakes. 

Overall, you must have a thorough knowledge of the ins and outs of a beachfront foreclosure before you proceed and invest money in the same. Your knowledge, expertise and experience, and most importantly an extensive research are the core components that determine your success in a foreclosure business.

 

Do you own real estate articles or stories and want to share with other investors? 
You have chance to win $100 Amazon Gift Certificates. We will give away 3 prizes for top authors each month!

Email your articles or stories to:  articles@buyincomeproperties.com

 

© Copyright 2001 - 2010 by BuyIncomeProperties.com               

 

 

Visit Real Estate Forums for every real estate investing topics!  Enter Here

    

Top of Page