California Foreclosures: An Easy Purchase?

Maybe not!

Buying a home is more than just a simple purchase, it's an investment! And with investments you have to plan accordingly:

1. 1. How much will it cost?


2. 2. What rate of return am I expecting and is that profitable enough for the risk I'm carrying?


3. 3. Do I have an exit strategy?

According to http://www.foreclosure.com/ there are currently 768 foreclosures and an outstanding 68,000 pre-foreclosed properties in the state of California. BUT..."Remember...everything that you do should contribute to a strategy!" -- RB So get your finances in order and prepare accordingly that way you don't run yourself into a bad situation.

The ol' Fix n' Flip strategy isn't as easy to carry out as it used to be. Homes simply aren't appreciating at the high percentage rates of prior years. Now you have to hang on to your investment for the longer term. Without proper planning and with limited investment capital, you run the risk of having your investment turn sour.

What do you do if you're the consumer interested in purchasing a foreclosure?

Conduct a proper Title search:

1. Who is/are the owners of the property? But more specifically, who is on Title to the property?
   


2. How many outstanding mortgages are on the land records of the property?
   


3. Are there any outstanding lawsuits against the owner(s) of the property?
   

Get Pre-Qualified:

1. Get appropriate qualification so that you have something solid to negotiate with. You'll be required to close expeditiously after obtaining a purchase contract.
   

Obtain a Purchase Agreement:

1. You'll need to evidence this to the lender in order to get an extension on the foreclosure process.
   

Ricardo Bueno, Your Residential & Commercial Investment Advisor
Ricardo Bueno is a Mortgage Advisor & Team Leader with Wilshire Financial, Inc. A diversified mortgage brokerage located in Pasadena, CA.