Real Estate Deals Gone Bad

Real Estate Deals Gone Bad

Cheap Real Estate - Ten Reasons Why

Why is there cheap real estate? Is it just that some sellers don't know what their property is worth? Sometimes this is the case, but only rarely. More often a seller is willing to sell for less because it means selling faster or more easily. In other words, sellers will trade a little equity for a fast sale or peace of mind, as in the following situations.

Ten Cheap Real Estate Motivators

1. Death - After the death of a loved one, family members may want to sell any real estate cheap to be quickly done with the bad memories, or to get their inheritance faster.

2. New Job - A job transfer or new job can give a person a lot of motivation to sell fast, and therefore sell cheap. Often, the seller will end up with two payments, and you will be helping by taking one off his hands.

3. Divorce - When people divorce, sometimes they need to sell to settle things, and the faster the sale, the sooner they get to be done with it all. Also, sometimes neither one can afford a home that was being paid for with two incomes. A fast sale prevents late payments and credit problems.

4. Behind in Payments - If a seller is already behind in payments, he or she is facing possible foreclosure. Selling to you at a discount is preferable to losing a lot more equity in a foreclosure.

5. Back Taxes - In most places an owner has to be more than a year behind on property taxes before he faces losing the property. If he is close the the deadline, however, you may get a deal. Just be sure you take into account the taxes that have to be paid.

6. Absentee Owner - It is difficult to deal with a property from a long distance, especially rental units. These sellers often get to the point where selling fast and regaining peace of mind is more important than getting full market value.

7. Income Problems - Whether due to a lost job or declining business, a seller may no longer have the income necessary to keep his home or other real estate. He may need to sell fast to avoid further financial problems.

8. Negative Cash Flow - It doesn't make sense to lose money on real estate every month, so sellers with negative cash flow may drop the price to sell fast. Just be sure that you have a plan to increase that cash flow once you own the property.

9. Damage - This is one of the most common reasons for cheap real estate. The walls have holes, the roof needs replacing, and the cats peed all over the carpets. Fixer-uppers always sell for less, and the scarier they are the cheaper they get. But be sure you know what you are getting into.

10. Sudden Cash Requirements - Sometimes a seller has a better investment or other reasons to need cash fast. For example, selling fast might prevent him from losing another property to foreclosure, or it might mean getting into an investment that will make him far more profit than the little bit of equity he loses selling cheap to you.

Other reasons people sell below market value include sickness, partnerships gone bad, bad tenants, excess debt, and any number of changes in people's lives. Remember, however, that the immediate reason for a lower price is to get a faster or easier sale. To get cheap real estate, then, make offers that close fast and easy.

About the Author

Copyright Steve Gillman. To see a photo of the house we bought for $17,500, and get a Free Real Estate Investing Course, visit: http://www.HousesUnderFiftyThousand.com

Real Estate Deals Gone Bad Questions

what type of lien can i file on someones property for non payment of debt?

real estate deal gone bad.
do i have to be a contractor in order to file a mechanics lien?
the loans remained in my name amd damaged my credit due t late payment. now the deed of trust and mortgage are no longer in my name but previous years tax bills have recently been mailed to me with nasty note from recorder. It seems I have no recourse if i can't attach the property i will never get what i am owed.
does consulting or being an appraiser qualify as a tradesperson?

Time to talk to a real estate lawyer. Many charge a small fee ($50-100) for an initial consult and often that's all you'll need.

Mechanic's lien is only if you are a contractor and have done work on the property.

If the deed is not in your name, you are no longer responsible for the taxes.

HOWEVER, if you carried back the mortgage for the new owner, you COULD lose your property because of unpaid tax bills. You need to talk to a lawyer and start eviction proceedings (if this is the case).

your best bet - talk to a real estate attorney.

Is it a good idea to try and purchase a foreclosed property?

People have been telling me that I don't have a sufficient income to afford a house over $90-100K, despite my tiny living expenses and plans to save up a good down payment. But when I check real estate listings for my city, the only houses available in this price range are either in dangerous ghettos or foreclosed properties. I am wondering if buying a foreclosed property is a good deal or if there's a lot of fine print and strings attached. I noticed quite a few foreclosed properties in the safe middle class suburbs outside my city, most of them starter sized homes going for $60-100K.

Has anyone ever done this? Are there generally good experiences or bad experiences with going this route? Would you recommend it for me? I am looking to become a first time homebuyer in mid-to-late 2009.

Let's take a step back. What "people" are providing this info on what kind of loan you can qualify for? If they're not lenders who have reviewed your specific financial data, what they think isn't important. When you are ready to buy a house, talk to some lenders to get some accurate numbers.

When you're buying a house, it's always important to think about resale. Why do you think homes in undesireable areas are priced so low? It's because few people want to live there so sellers attempt to entice buyers with price. If no one wants to live there, how will you get rid of the house when you're ready to move on?

My personal home was a foreclosure, but I did not set out to buy this type of property. It just happened to be the right house. From what I've read here and elsewhere, I seemed to have had a fairly easy time with my purchase, although it didn't feel like it at the time.

I had a buyer's agent, and whatever you do, do not purchase a home without one. My buyer's agent is the one and only reason I got my house. My first offer was rejected with no counter offer. A week later, I offered more and they wanted to reject me again. My buyer's agent did a great job of finding out why the bank didn't like my offers and working with the seller's agent to get her to see how to talk to her own clients to get them to play ball.

In any home purchase, an inspection is an absolute must! Banks usually sell as-is so they're not going to fix anything, but you need an idea of what all needs to be fixed before you take on the task. Surprises are generally not cheap.

I set out wanting a house that needed some work, and I got it, but I really didn't have a concept of how much time, energy, and money it takes to fix up a home. I really though it wouldn't be that hard to accomplish projects on eveings. What I've found is that work moves pretty slow when you're doing the work yourself and are committed to a full-time job. Be prepared to live in an on-going project.

Real Estate Deals Gone Bad Videos

Jobin Realty Oct 26

It has never been easier to shop for Real Estate Deals Gone Bad, So run don"t walk and pick up Real Estate Deals Gone Bad at bargain prices!

Incoming search terms for the article:

• real estate deals gone bad
• Real estate Tampa YourName@YourKeywords
• : YourName@YourKeywords real estate
• co-owner of property gone wrong
• property deals gone bad uk
• property deals gone wrong New Zealand
• YourName@YourKeywords
• YourName@YourKeywords lawyer