Real estate foreclosures include many problems from several perspectives to be sure. However, as is frequently the case, where there are obstacles there also are opportunities, and with respect to real estate foreclosures, those opportunities are numerous indeed! But, are the available foreclosure profits to be gained from such opportunities gold mines or mine fields? Well, the answer to that question is clearly, “Both!”
There are many ways that one can seek to profit from home foreclosures, but they really stem from the three main time periods associated with any given foreclosure:
1) the time period before foreclosure,
2) the time period from beginning to end of the actual foreclosure process, and
3) the time period that follows the foreclosure.
Each period contains ample chances for achieving great monetary returns, and catastrophic disasters.
During the pre-foreclosure period, viable home owners should have some equity left in their properties to permit a short sale. On the benefit side of these opportunities are two complimentary components. First, the investor who can inventively and diligently work his or her way through the process during this period can earn major rewards. Second, having bought the property at a very favorable price and sold it successfully for a good profit, the property seller can be given some extra cash from the sale making it a win-win deal.
On the liability side, transactions during this period can take longer than normal property purchases because loaner.