Foreclosure investing is actually quite another world when people have finally taken that risk and go for it. This really applies to anything else in life. Remember all those late nights where you’d stay up and watch those “how to make millions in your sleep” commercials. Or perhaps you remember all those times you went to the book store and purchased tons of real estate investment study guides.
In fact you probably have a impressive home library and collection of real estate, investment, and how to get rich quick type books by now. Some people may get a feeling of being overwhelmed after wading through those thick books and studying all the complex terminology.
The truth is, if you are a naturally goal-oriented and self-disciplined person than you can probably achieve a full-time income in real estate within a year with the right system. So how do you choose the “right” system when everyone and his uncle says they are an expert or guru within the real estate domain?
One thing you might want to consider doing is to align yourself with a acquaintance or relative who is already successful in real estate investment or at least in the branch of real estate that you are interested in doing. Don’t be shy, definitely get in touch with them.
It may be a friend from high school or university, or perhaps even a former room mate that you knew when you were just getting started with your own life and needed someone to share the rent costs with in order to have your own place, etc. I am sure that if you brainstorm for a bit, you may even surprise yourself at how much opportunity there is in your own circle.
That is actually a very good idea- the number one way to get into real estate successfully is to have a mentor or at minimum someone that can really show you the ropes and provide feedback in real-time. No matter how well written the courses you’re looking at is, nothing really compares to a trusted friend or adviser that can actually walk you through this process step-by-step.
Even if it isn’t step by step, it’s still great to be able to call someone up and ask for advice on what you are doing as well as to add some motivation to the process. Folks this relationship is priceless. You can save hundreds of hours of time learning things on your own, and also save thousands upon thousands of dollars in costly mistakes.
Ultimately you will have to walk the path yourself in order to learn and profit from this wonderful industry. But the initial first steps will furnish you with the momentum to be able to soar on your own two wings.
When you hear about foreclosures on the news or read about foreclosures in the newspaper, you will see that most of the attention is placed on the homeowner in trouble. Unfortunately, it seems as if renters have simply just been forgotten. That doesn’t, however, mean that they are exempt from foreclosure related evictions. If you are a tenant of a rental property, foreclosure should be a concerned of yours.
The most common fear of renters is coming home to a sign on the door stating that they must be out within twenty-four hours. Typically, this will not happen. Many states have laws that are designed to prevent this from happening. Although it does vary, depending on the state, banks are usually required to post foreclosure notices on the building within twenty days. These are notices that you should be able to spot.
Another way that you can know if your rental unit is headed for foreclosure is by regularly examining listings. These foreclosure listings are easy to find online. Properties in foreclosure should also be listed and be available for viewing in your local city, town, or village offices. Although you may want to refrain from outright asking your landlord if he or she is facing foreclosure, especially if no signs are showing, it may help to calm your fears.
Even if your building is being foreclosed on, you may not necessarily have to start packing your bags. Some states make it so that your lease trumps the foreclosure. This protection often occurs when a new owner is unable to afford their mortgage. For example, is your one or two year lease with the previous owners? If you entered into the rental agreement before the mortgage in question was obtained, the buyer of the foreclosed property may have to honor your lease.
Renters are also provided with a small amount of foreclosure protection when they rent from a rent stabilized unit or when they are a part of a federal housing program. In many states, those on Section 8 cannot be evicted from the rental unit without reasonable cause, even when ownership is transferred. Some states and local governments also state that foreclosure is not a good enough reason to evict those in rent stabilized housing units. Since these exemptions vary depending on local and state governments, be sure to verify this information ahead of time.
Although you may be offered some protection as a renter, the new owner of your property may have other plans. Know that you cannot be threatened or forcefully removed from the premises until a proper eviction notice has been served. In most areas, this is not something that just happens overnight, so you should have some notice. Until that time arrives, you should not have your locked changed, have your belongings moved from the premises or have your utilities shut off. In the event this does happen, contact the authorities and a lawyer. In the event your utilities are shut off, the health department can and should be notified.
Another concern that renters have, concerning foreclosure evictions, is their security deposit. Since most rental properties require the payment of a security deposit, those forced to move unexpectedly are often left in a pinch. In all honesty, it doesn’t matter how well clean or cared for you kept the rental unit, you may have difficulty recouping your security deposit. New owners are often exempt by law from having to pay it. You can sue the previous owner, your last landlord, but this process can be time consuming and costly.
As you can see, you do have multiple options when facing foreclosure, as a renter. For more assistance, you will want to consult with a housing counselor that is approved by HUD (The United States Department of Housing and Urban Development) or a lawyer. If and when you consult with a lawyer, select one that has experience handling legal matters that concern housing and tenant rights.
Much attention is placed on homeowners facing foreclosure. Yes, this attention is well deserved, but it appears as if many media and news organizations have forgotten about the impact foreclosure has on renters. If you are a renter living in a property that is facing or is in the middle of foreclosure proceedings, you may not know what to do or where to turn. For you, it may seem like you are at the end of your rope.
When facing foreclosure, many renters will simply just cut their losses and relocate. This may mean having to move without recouping a security deposit. Unfortunately, there are some renters, possibly you, who cannot up and afford to relocate, especially without getting your security deposit back. When renting a new apartment, most landlords require a security deposit and if you weren’t prepared to move, you may not have the money.
There is another serious issue that renters forced to relocated are facing. Foreclosures are on the rise. What does this mean? It means that an unprecedented number of homeowners have no place to live. This often turns them into renters. Unfortunately, this lessens the availability and rental choices for renters, like yourself. It may mean that you have to pay more in rent or move to another city or town.
As previously stated, many renters decide to throw in the towel and relocate. If you are unable to do so, you may want to wait and see what happens. Of course, during this time you should take steps to protect yourself. Save enough money to cover your moving expenses, including a new security deposit. You will be prepared in the event that you are legally evicted from the property. You should, however, know that eviction from a property in foreclosure is not something happens overnight. You usually have a few days or even a few weeks to make alternative living arrangements.
Before making a decision, all renters are urged to look at the property in question. Are you renting a unit from an apartment complex or a multi-family home? If you are, you may be able to stay. Investors at foreclosure auctions often purchase rental units. These investors want to see a return on their profit. The way to do this is to make sure their rental units are filled with quality, on time paying tenants. With that said, if you are renting a single-family home, you may want to prepare to relocate. Unlike with rental properties, single-family homes are often purchased in foreclosure auctions by those looking to live inside.
Despite the fact that some new rental property owners may be willing to work with you and let you continue to rent, there is no guarantee that the property will sell. When low bids are received at a foreclosure auction, the original lender often steps up to the plate and buys the home. In this case, the home is no longer considered a foreclosure, but a REO (real estate owned) property. Unfortunately, this doesn’t always workout well for renters. With REO properties, lenders, who are also known as investors, may start the eviction process right away. Many cannot or do not want to become property managers, even just for a month or two.
As previously stated, foreclosures can occasionally come as a surprise to renters. Your landlord will receive multiple warnings and notices, but they are not required by law to share them with you. Renters usually become aware of foreclosure proceedings when notices are placed on the building. At this point in time, you should contact the lender in question. See what your options are. Can you buy the property yourself? If you can prove that you have a stable income, the lender in question may be willing to work with you.
As a recap, foreclosures are having a significant and usually negative impact on renters. If you are a renter who lives in a property that is facing foreclosure or if you fear foreclosure is looming, you may want to start making preparations to ensure that you are well prepared for what is to come.
