Fortune Watch

No question, foreclosures are at a record number right now. After a period of aggressive lending, more and more people are finding it impossible to meet their mortgage repayments. The banks and other lenders, in turn, are foreclosing on more and more properties.

I think the banks committed “foreclosure suicide” when they issued some of these adjustable loans and creative loan programs to people who really shouldn’t be getting those loans. They are now seeing the fruits of their labor. Given the crash in property prices across the nation… this means huge opportunities for the savvy real estate investor. So in this article I’ll outline the main ways you can make money from foreclosures.

Okay, so what is a foreclosure? Basically, a foreclosure arises where someone who has borrowed money from a bank or other lender to buy a property — and has given the lender the property as security for the loan — fails to meet their mortgage repayment obligations… and the lender decides to repossess and sell the property as a result.

There are three main foreclosure investment opportunities, depending on the status of the foreclosed home in the foreclosure process.

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In today’s world, no one can afford to buy a home without applying for some kind of loan in the form of a mortgage. Mortgages are controlled by various lending companies which can include banks, credit unions, and even individuals. These parties make their money by charging interest on the loan.

A mortgage is the pledging of a property as a security for a mortgage loan. While a mortgage in itself is not a debt, it is evidence of a debt. It is a transfer of an interest in land, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the real estate when the terms of the mortgage have been satisfied or performed.

Because a mortgage revolves around the lending and repayment of money in order for lenders to make a profit, it is important that they loan to individuals who are as secure as possible; the general rule is that the more secure the individual as far as past and present money matters, the more money he or she will be lent. After all, the lender is taking a risk with his or her own funds, and will want them paid back.

The main way in which lenders will establish your security is by looking at your income and your past when it comes to credit. Most of the time this is all right, but what if you have filed for bankruptcy somewhere in the past? Will you still qualify for a mortgage?

How much time has passed?

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