By now most Americans are very aware of the fact that real estate foreclosures are at an all time high. In many states and metropolitan areas, foreclosure rates have doubled and tripled since the beginning of 2006. A lot of American homeowners, though, still are not clear on exactly what the foreclosure process is or how it unfolds. In a typical case, when a homeowner is 30 days late on its monthly mortgage payment, the lending institution will place a phone call to the home-owner, reminding them to make their monthly payment. The Lender will follow up with another phone call and usually a written reminder after 60 days of non-payment.

Once the homeowner is 90 days behind on their mortgage, the lender will invariably send the homeowner what is called a “pre-foreclosure letter.” This letter explains to the homeowner that they are in default (violation) of the terms of their mortgage agreement and if payment of the past due amount, including late fees and interest, is not paid immediately the lender will file a foreclosure lawsuit seeking to ‘re-possess’ the house.

Once the lawsuit is filed, the homeowner is also responsible to pay the lender’s attorney’s fees and the other costs of the lawsuit. As just one example, in South Florida, where the foreclosure rates are among the highest in the country, a foreclosure attorney’s fee of $1,200.00-$1,500.00, with additional court costs of about $500.00, is considered reasonable by the courts. Supposing the homeowner had a monthly mortgage payment of $1,500 and was six months behind in payments, the homeowner has to pay $9,000 (called arrearage) in past due monthly payments and additional $2,000.00 in fees and costs to stop the foreclosure lawsuit once it is filed.

Fortunately, there are several manageable remedies for homeowners in foreclosure. These remedies are known in the industry as ‘work-outs.’ The lenders would rather have the stream of monthly mortgage payments flowing in than thousands of re-possessed properties. As a result, many lenders allow the homeowner to pay one or two months worth of the arrearage, along with the attorney’s fees and costs, to stop the foreclosure. The rest of the arrearage is added to the loan and due at the back end of the mortgage. This is called a forbearance plan. Sometimes the lender will agree to a forbearance plan where the homeowner pays only the fees and costs up front and the entire arrearage is added to the back end of the loan.

Another type of work-out is the stipulation to modification plan, or ‘stip to mod.’ In this case, the homeowner agrees to make a certain amount of negotiated payments, generally about 1-2 monthly payments for a fixed period, generally 3-5 months. If the homeowner lives up to the deal, the loan is then modified in writing by the lender, to include a lower, fixed rate of interest, which substantially reduces the amount of the mortgage payments going forward .

“The lenders and banks simply can’t afford to sit on a huge inventory of foreclosed homes, so they have started to bend over backwards to give homeowners workouts,” advises Richard Rolland, who runs Home Safe Arbitration near Ft. Lauderdale, Florida. Home Safe Arbitration is one of hundreds of companies throughout the nation that specializes in negotiating work-out plans between homeowners and their lenders.

“A company like mine will almost always work out better terms with the lender than the homeowner will for themselves,” Rolland notes. “We talk the language all day long, know what info the lenders focus on and have relationships with the lender’s work-out departments due to the sheer volume.”

Rolland further advises that homeowners also hire an attorney to represent their legal interest in the lawsuit and to ensure that companies like his have enough time to negotiate the work-out. “In Florida, a good attorney can prevent the house from being re-possessed for at least five to six months,” says Rolland, “That is usually enough time for us to finalize a fair work-out plan for the homeowner.”

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Basically, the government tax foreclosure houses are those real estates that have been repossessed by the government agencies and the government banks. The government agencies or banks owing to the fact that the borrower of the loan or the mortgage amount had defaulted in repaying the capital sum that he availed from them seize these real estate properties. So, the agencies or the banks seize the debtor’s property to recover their fiscal losses that they have incurred. Although, before the government tax foreclosure, the debtor is duly informed and granted a certain time period to repay at least the minimum amount of money to keep his/ her property safe from repossession. When he’ she still fails to make any payment, government banks and agencies, to reimburse their losses, sell these properties off to the potential investors and prospective buyers.

The government agencies and banks put up an auction to sell these tax foreclosure houses. All the interested buyers and investors are sent a word regarding the auction and are invited to bid. The investor or the buyer, who makes the highest bid, earns the custody or the possession of the house. After all the legal formalities, he/ she become the owner of the concerned government tax foreclosures.

The reason why these are available at such incredibly low prices is that the agencies/banks have a lot of other jobs to cater to, so they try to sell these foreclosure homes as soon as possible. They are fundamentally bothered about recuperating from their capital sum and thereby choose to ignore the profits that they can easily make from the selling of these foreclosures. More so, they are not interested in making any repairs that the concerned government foreclosures may require. So, it is majorly because of this reason that these houses come at so cheap and affordable rates.

If you are also thinking to invest in real estate but are not really experienced in the area, then investing in foreclosures for sale can be a very good start for you. You can avail all the homes associated information from any good and experienced realtor. In fact, you can also get all this information online very easily. Availing this information online will greatly reduce your legwork and will be a very convenient option for you too. You can see the entire listings of all the foreclosure houses and after you have browsed through all the available options, you can make a wise and great choice.

Search foreclosures by state or get more information on government tax foreclosures at ForeclosureListings.

Kevin Simpson, GM Sales & Marketing, ForeclosureListings.com

The people you’re looking for are private individuals who have money to invest in real estate. Many of these people may currently keep their money in CDs, mutual funds, IRAs, etc.

Why do they put money into these types of accounts? They want a good return on their investment. If you can offer them a higher return than they’re currently getting on their CDs, money market accounts, etc., do you think they’d be interested in talking to you? Absolutely!

However, here’s one of the challenges. These people are not knocking on your door. You’ve got to go find them. Just like the creative real estate business is a numbers game, so is the ability to find private investors.

Are they hard to find? No. It’s simply a numbers game and it takes a little detective work to ferret out these investors–but you’d be surprised what can happen in a year.

In order to be successful, though, you’re going to have to put CONSISTENT effort into finding this type of person. If you’re not putting in the effort of finding funding partners, you’re probably in the wrong line of work. However, if you’ve got the attitude of I know I can, I know I can, I know I can, and will take massive amounts of action to find these private investors, you will do very well in this business and you will find your investors. And as long you continue to find properties that are profitable to the private investor the money will stick around. You’ll even start to get calls from these investors wanting to invest in you and your business if you are successful.

Private investors are relatively easy to find. You can find them by talking to people and telling them what the type of investor you’re looking for. Believe me, if you offer the type of returns that the creative real estate business can offer, the word will spread like wildfire that there is a person out there who can give above average returns on investments in a very short amount of time.

One of the easiest ways to get in front of private investors is to meet with all the private professionals that you know. Do you have a doctor, a CPA, a lawyer? All of these people are great to start with. You’d be amazed at the amount of money that your CPA deals with on a daily basis for his clients.

You may say to yourself, “I don’t have the experience or track record to find private investors. Why would these people give me any money?” However, if you can offer them X amount of return on investment, secured by at least 70% to 80% loan-to-value on real estate, you’re going to find these people. Money follows opportunity. And in this case, you are the opportunity.

Show your potential private investor that you’ve done your homework. Provide them with the details they need to see. Provide them with the projected profit, and give them the peace of mind that you know what you’re doing. Believe me, if you continue to produce returns that excite them they may offer you more and more money and they will have friends that will do the same. It just takes time.

Just remember that most private investors who lend you money are interested in a return on their investment. If you happen to make more money than you thought you were going to make on a deal, throw the private investor a little extra. Put a little more on the top. Whatever it takes to start using a private investor, use one.

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Paul Wells has been investing in foreclosures full-time for more than 5 years. To ask Paul a question, go to his Foreclosure Investing blog here: http://www.AskPaulWells.com

So why aren’t more people snatching up houses at rock bottom prices like a kid on a Toys R Us shopping spree?

Well when they take the next steps to transforming this dream into reality they find out that most mortgage lenders currently will not allow you to have more than 4 mortgages to your name if you are applying for another. When translated, this means that you can only have 3 additional mortgages on your credit report if you have one on your primary residence.

You would think that people would go out and get their four properties, maybe even have their spouse get another four too. Instead we see people deciding that if they can’t buy ten next month in their own name, they won’t get involved at all.

I know a lot of people that are buying Michigan Foreclosures and are using creative strategies to work around the 4-property and high-down payment obstacles. Here’s one that works well.

Use commercial funding to refinance your investment properties. If the properties were bought right with significant positive cashflow, then it shouldn’t be too difficult to package three rented homes together into one commercial loan. This frees up the funds that were used to acquire the property (either from a line of credit, straight cash, or other sources) so they can be re-invested in purchasing an additional three properties.

Commercial loans are different from standard mortgages. They often come with 10 year amortizations and have to be refinanced every five years and because of that it’s usually best to select the right type of investment homes that have such a high cashflow rate that they can account for it.

This translates into buying very inexpensive properties. Houses that can be bought and fixed up for $30,000 or less and will rent for $750-$950 per month match up well to being rolled into commercial loans.

This is why smart real estate investors from across the nation are turning to Michigan foreclosures and properties in other areas that can be had for a bargain price. The financing is still there to keep buying more properties while prices are at record lows. Even after the published declines brought on by the credit crunch and mortgage meltdown, other markets on either coast as well as Florida have values averaging well over $150,000 which don’t mesh well with commercial financing.

So if you want to buy a lot of properties at great prices that cashflow well in a short amount of time, then real estate investing in Michigan foreclosures is the way to go.

Michigan foreclosures bring a unique benefit not found in other real estate markets…namely that homes can be bought at such low prices, but they still command high rents.

Further more, with new methods to collect rent automatically each month and great property managements companies to take care of the occasional leaky faucet; it’s easier than ever to invest from afar.

Do some research and I’m sure you’ll agree that Michigan foreclosures may be just the type of alternative investment you are looking for. It might even be able to help you turn around the losses the stock market had dealt to your other investments and get on track where your finances and retirement goals are concerned.

Brian Kurtz is a licensed Realtor who invests in Michigan real estate and shows people nationwide how they too can take advantage of the unique Michigan foreclosure market without ever leaving their own home town. Sign up for Brian’s Hot List of wholesale investment properties at http://www.PremierRealEstateInvesting.com

First time investors, without experience, and looking at purchasing properties in foreclosure, can seek the assistance of any number of real estate agents or real estate brokers. Many realtors have access to large databases of information, giving potential investors a larger picture of what is available in and around the area. In addition, agents normally have access to information from local banks with different listings. Using an agent will allow purchasers to tap into the agents training and knowledge, so the purchase and subsequent financial transaction take place correctly, including obtaining real estate loans. Brokers have the same function however work with sellers and buyers on real estate transactions. Both types of professionals can assist investors, on important legalities like verifying no liens are placed on the property.

Real estate developers, referred to as real estate investors, are also beneficially used by first time first time purchasers of foreclosed property. Such professionals have the ability to assess any existing damage on the home, and examine the total amount needed to finance the purchase of the foreclosed property. Professionals of this type, verify that investors receive the best possible property, for the amount purchased, and have a good knowledge of the cost of renovations. Purchasing a foreclosed property is not the same as purchasing a stereotypical piece of investment property. Many times the previous owners have demolished the interior. Investors without any mechanical ability are best served by a developer who can advise potential buyers of the cost of renovation. This service is beneficial, because it gives prospective buyers a larger picture of the total cost of purchasing a repossessed property.

For financially savvy first time foreclosure investors, with a good knowledge of real estate trends, it is possible to privately purchased properties taken back by the lender. Using a broker or real agent is advantageous however purchasing a property without assistance is obviously more financially advantageous. Banks are ready to unload foreclosed properties at low prices. In a tight economy, banks need the revenue from the sold property. Depending on the loan on the property in foreclosure, investors can purchase the property according to the stipulations of the original buyer’s lender. For example, government loans require prospective buyers to submit written information with a bid, and the highest bidder receives the foreclosed property. Private lending institutions obviously have in house rules, and prospective buyers, of the foreclosed property need to check the lenders policy on purchasing real estate in foreclosure.

Chris Robertson is an author of Majon International, one of the worlds MOST popular internet marketing companies on the web. Learn more about Puchasing Foreclosed Real Estate.

Investing in foreclosures is a sound move. According to real estate experts, putting your money on foreclosure is one of the most profitable ways of earning profits for your investments. However, raising the money to invest in such properties is another matter. Don’t worry, it’s not that difficult. Here are some ways to do it.

1) Assume the loan obligation of the property seller. This option has several advantages for both the seller and the buyer. Taking over the existing loan of the seller will solve his problem. The property need not go into foreclosure and the seller’s credit rating will remain intact. For you, the buyer, you assume the payment for future loan obligations without having to go through a long process of applying for a mortgage or seeking one. You also avoid the fees and delays that usually accompany initial mortgage applications.

2) Use other investments. Borrowing from a retirement fund or life insurance policy is also a reasonable strategy to finance a foreclosure. The buyer can get a huge sum of money without having to go to a financial institution for a loan. This technique has less hassle and also has lower risks.

3) Get loans from banks and other lending institutions. If the buyer does not have cash, a life insurance policy or a retirement fund, then he can opt for a more traditional method of financing – getting a loan from a bank. If the buyer is in good credit standing, getting approved will not be a problem.

4) Accumulate smaller loans. However, if a buyer is not in good credit standing, getting loans from banks and other financial institutions will be a problem. Another chance lies in smaller loans. A person planning to buy a foreclosed property can get for himself several smaller loans to raise the money needed to pay for the property.

5) Find a partner. If a buyer cannot raise the money on his own or borrow from institutions, then he can always consider finding a partner who has the money to purchase the property. The profits will be divided and they might not be as high as profits from a solo investment, but the buyer will still earn from the venture.

6) Home equity loan. An investor can also use the equity of his own home to secure the money needed to finance the foreclosure. Using a home as a guarantee usually speeds up the process since lenders are more willing to issue loans if the borrower has something tangible to offer.

Foreclosure financing is not that difficult. However, an investor should always explore every available option and weigh their pros and cons before venturing into foreclosures.

Read more information about finding Foreclosure Lenders and government foreclosure listings for available properties at => http://www.findforeclosurepreventionhelp.com