The foreclosure process is not very difficult to understand. There are several stages during which the homeowner has an opportunity to bring the loan current and avoid foreclosure.

After about three to six months of missed payments, the lender orders a trustee to record a Notice of Default at the County Recorder's Office. This puts the borrower on notice that he is facing foreclosure and starts a reinstatement period that typically runs until five days before the home is auctioned off.

If the default isn't corrected (the loan must be brought current) within three months, a foreclosure sale date is established. The homeowner will receive a Notice of Sale, and this notice will also be posted on the property. In addition, the Notice of Sale is recorded at the County Recorder's Office in the county where the property is located. Finally, this Notice of Sale is also published in newspapers local to the county in question over a three-week period.

The foreclosure Trustee Sale typically occurs on the steps of the county courthouse in which the property is located. The time and location of this sale are designated in the Notice of Sale. At the Trustee Sale, the property is auctioned in public to the highest bidder, who must pay the high bid price in cash, typically with a deposit up front and the remainder within 24 hours. The winner of the auction will then receive the trustee’s deed to the property.

Foreclosure Auction
At auction, an opening bid on the property is set by the foreclosing lender. This opening bid is usually equal to the outstanding loan balance, interest accrued, and any additional fees and attorney fees associated with the Trustee Sale. If there are no bids higher than the opening bid, the property will be purchased by the attorney conducting the sale, for the lender.

If this occurs, and the opening bid is not met, the property is deemed a REO or Real Estate Owned. This typically occurs because many of the properties up for sale at foreclosure auctions are worth less than the total amount owed to the bank or lender.

When you purchase property at a foreclosure sale, all junior liens other than property taxes are wiped out. Priority of liens is determined by the date of recording. When you purchase a Bank REO, you will typically receive the property with a clean title.


For more insightful information into the foreclosure process read our new ebook at
www.howtomakeakillinginrealestate.com

Preview of Chapter 1: Overview of How to Make a Killing in Real Estate

Chapter 1: Introduction

Real estate is one of the greatest wealth building tools in the world. Unfortunately, many people think that building wealth is tied to how much money they can borrow and how large a mortgage they can attain. Well after the real estate and bank crash the reality should now be settling in that all that glitters is not gold. True wealth is not built by accumulating houses through debt or by the number of platinum credit cards in your wallet.

A prime example of this is Donald Trump, a multi-millionaire who has filed numerous corporate Chapter 11 bankruptcies with his real estate empire. Even though he still has his own television show and is well respected in the business arena he is proof that buying things on credit is not always beneficial in the long run.

True wealth means having no debt and at least twenty-four months living expenses stashed away in cash savings. This means your cars are paid for, your house is paid for, and you have no credit card balance that rolls over month after month. True wealth is not tied to your FICA score. It means that if you lose your job, you don’t have to worry because your house is paid for and you have other investment income that is bringing in money. Your wealth is not tied to your job or your car, or your spouse as all of those things can change.

This e-book will teach you everything that you need to know about buying a real estate property and making a profit in the first year, doubling your investment in the second year, and eventually selling it when the market rebounds.

This book is meant to be an educational tool to get out of the poverty trap and into true wealth. In this book you will learn from my mistakes as a real estate investor and benefit from the things that I learned as an average woman with very little disposable income.

When you have real wealth you can choose when you want to work and if you want to work. You can decide to stay home and see the kids through their growing years or sit back and take the winter off and travel to the Caribbean, Dubai, or Europe. The world is your oyster when you have nothing to tie you down.

The real estate market represents a prime wealth building situation that everyone should take advantage of but you must do your homework and you must know when to hold them, when to walk away and when to run! I have learned all of these things and I want to share them with you. This information is not something that you will hear on the radio as most people want you to be in debt and stay in debt. Most people will teach you how to have good credit and keep good credit and how to qualify for the house you really can’t afford.


Not many people will recommend buying a house for cash or if they do it may seem insurmountable especially when you are barely making ends meet, but it can be done.

There are pockets of areas throughout the United States where you are able to purchase real estate for under $40,000 in decent neighborhoods. One area that we have researched extensively is the metro Atlanta area. This area is unique in that it has sales in some areas of Atlanta as low as $7000 and as high as $10,000,000 making it difficult to establish an average.

We have also researched the Orlando Florida area with its rich resources and favored city status it is a prime choice for investors. In Orlando you can find property that was purchased for $160,000 in 2008 now listed at $22,900 in 2010.
In Chapter nine, there is a case study on the Orlando Florida real estate goldmine with step-by-step instructions on finding property goldmines.

Real estate investment has produced more millionaires than any other industry and it has proven to be a genuine wealth builder for centuries as well as a wealth destroyer. How many a fine investor has bought a house with a mortgage and then lost his job and was unable to pay? He was just two weeks notice away from bankruptcy and poverty. Well that does not have to be you. Real estate investment is a long term investment and while it is possible to buy a house for $20,000 and renovate and sell it for $100,000 this usually takes time. This type of return does not happen every day, but if you select the right type of property in the right area this can happen. I have seen it happen more times than I care to mention and in this market it can happen in less than two years.

Rental income can also be very lucrative if you know how to get solid tenants and keep good tenants. I learned the hard way how to tell when a tenant is lying and will give you the secrets to the trade and make sure you don’t get duped. Real estate investing can be the path to financial freedom but it is not easy it takes perseverance, education, and hard work. This book is an eye opener so sit down, relax, and take notes.