Tuesday, January 8, 2008

Pre-foreclosure One on One

The leading short sale and pre-foreclosure expert Nation wide is Jeff Kaller. His students have really done well in our Michigan Market. If they do well in Michigan depress real estate market you know Jeff Kaller is doing a great job of teaching the short sale business. This is one of his interviews for your reading. You can find great value from his workshops and his free reports and CD’s:

Check out his workshops- Jeff is doing them all over the country http://www.JeffsWorkshop.com (LA in January)
Pre-foreclosure One on One
By: Jeff Kaller Republished by: Ralph Marcus Maupin, Jr.
Homeownership is becoming an ambivalent reality for more and more Americans across the nation. Over the past seven years, homeownership numbers reached almost seventy percent, even with critical mortgage issues looming, the increase reflects the highest rate ever. However there are remains many Americans don't realize that homeownership and investments are still within their grasp.
We sat down with preforeclosure expert and real estate entrepreneur Jeff Kaller to gain some insight into the preforeclosure market.
Reporter: How do you explain the current real estate market?
Kaller: As interest rates rise, more and more homeowners are falling into foreclosure situations. Clearly this reality prompts flood of bargain-hunting investors in every real estate market and courthouse auction across the country.
Reporter: Is there general advice as to what to invest in first?
Kaller: Professionals specialize in niches, such as low-income housing or condominiums. Less-seasoned investors should stick with single-family homes in lower-middle- to middle-class neighborhoods, where resale likely will be easier
Reporter: Can you give us a working definition of preforeclosure short sell procedure?
Kaller: Sure, its really very simple, a procedure in which the borrower is allowed to sell his or her property for an amount less than what is owed on it to avoid a foreclosure. This sale fully satisfies the borrower's debt.
Reporter: What is your advice to investors regarding timing?
Kaller: The great thing about this market is that investors can get in the game before or after auctions, too. It’s also possible to try to buy directly from homeowners beforehand or from lenders who is successful in the auction.
Reporter: As an investor, are there general legal issues that stand out?
Kaller: Here is an important pitfall: Some states give foreclosed homeowners time to reclaim their property by paying the auction price, often plus an additional percentage. For example in Colorado, homeowners have 75 days (though the state is set to eliminate that grace period). So you could spend tens of thousands of dollars remodeling a house, only to have the original owner grab back the newly improved home.
Reporter: It appears professional training is the key for a profitable investor venture. Can you give a few “no brainer” reasons for preforeclosure investing?
Kaller: Absolutely, for one, “Instant Equity,” many properties have equity available due to a purchase price below market value or ‘short sale’ on the part of the bank. Second, new construction is standard for many foreclosure properties due being one to two years old with builder warranties still in place. For investors, the property is ready to rent, such as preforeclosures; the sellers are often interested in renting the home as a tenant. This gives them time to repair credit and perhaps re-purchase the home in the future and if you are seeking the home for yourself, it’s ready to move in for owner occupied. The most important feature is you get more house for less money.

No comments: