Here Are 8 Easy Steps To Making Big Money With

Business.

Mortgage business faces crisis - your big money opportunity - the federal deposit insurance corporation( fdic) stated that. as of august 2007, the percentage of noncurrent( delinquent) loans was up 36% from one year ago. In general, the mortgage business is in a whole lot of trouble.

They further stated that net charge - offs( the amount of. money lost due to unpaid loans) rose 51% from one year ago( as of August 2007) . - the number of. homes in the us' in foreclosure' has risen 58% in the first six months of 2007. and that percentage is continuing to rise at an alarming rate. That. means, the more bad loans they have, the more money they have to have on. hand( that they cannot loan) . Federal regulations exist regarding the ratio of bad loans a bank. can have to the amount of liquid reserves the bank has on hand. Of course they also usually lose money. when they foreclose on properties. This all stacks up to big bucks for anyone who. knows how to cash in on the situation.

What all this means is that the banks have a. whole lot of bad loans that the banks would very much like to get rid of and. they' re willing to pay dearly for it. - the key to making money from this. situation is knowing how to get the mortgage banks to sell you their. bad mortgages at a discount - a deep discount. Sale. This is known as a Short. Here are 8 easy steps to making big money with. Every County in the US has a records. department. Short Sales: Find properties that are currently in pre - foreclosure: You can find these properties very easily.

When a bank begins foreclosure proceedings they must record a. document stating their intent. - in florida, a lis pendens is recorded. Different States are governed by different laws. so you' ll have to learn what documents are recorded in your State. Find the Lis Pendens recorded for this month and you. find all the properties that have gone into foreclosure this month. Keep watching the records and. find out when the foreclosure auction is to take place. Don' t. bother contacting the owners, it' s too early. Contact the owner about. a month before the auction.

Get the owner to sign an agreement to purchase. the property( a purchase contract) with you. - by then, they really know they' re in trouble and. they' re ready to' talk' . Be sure to include a clause. stating that the contract is contingent on a. ) the buyer being able to. negotiate a Short Sale with the lender( s) and b. ) the buyer is satisified. with the results of a property inspection. You need to get the owner to sign an agreement to that effect. Get an agreement to discuss the loan with. the lender: Before the bank will begin negotiations with you they. require that you have authorization from the owner( borrower) to discuss the. loan. Also, quite often, it' s a good idea to get the owner to talk to the lender with you. on the line.

Department. - begin negotiations with the lender: when you. call the lender you want to talk to a decision maker in the mitigation. Almost invariably you' ll get a lot of run around before. you can actually talk to someone with the authority to approve a short sale. Sometimes they will tell you on the phone. You need to find out what specific criteria is required to submit a proposal to. purchase the loan. Be sure to take. notes and get the instructions exactly correct. Occasionally they' ll want you. to make an offer right on the spot.

Usually they have a written. document that spells out the criteria required. - try starting at 50% of the loan' s current. balance. Include a cover letter stating. the purpose of the packet. Send the lender a Short Sale Packet: Prepare a packet of information for the lender. Include formal estimates from contractors on. the cost of any repairs that may be needed. Include a. financial statement of the owner( borrower) and a statement from the borrower. stating what circumstances prevent them from being able to bring the loan. current.

Include pictures of the. property if you can come up with pictures that make it look bad. - include your offer. Make sure you send the packet to the person in the. mitigation department who has the authority to make a decision on the loan. You might start negotiations at 50% of the current. balance of the loan. Continue negotiations until final: Keep close. communication with the lender. Then make another offer just below. that number.

If your offer is rejected ask what is the. lowest offer they would consider. - continue negotiating until you either have a deal or conclude that. they will not accept an offer low enough to be worth your while. Secure the money: This is where most. people panic and it' s the easiest part of the process. Do NOT. purchase properties where the total final price is more than 70% of the actual. market value minus repairs. Go to your favorite. If you' ve got a good. deal you can easily acquire a short term loan for 100% of the. finances needed, repairs included. Internet search engine and type in' hard money lender' .

If you' ve got really bad credit you might. have to hunt just a bit, you can pretty, but even still easily secure. money if the deal is good. - generally, you' ll work on this at the same time that you' re negotiating. the deal. If you don' t want to borrow hard. money, you might opt to use a home equity loan, find a' partner' like a friend. or relative and cut them in for a percentage of the profit or even use a credit. card. Get your ducks lined up. Talk to them about the closing. Close on the property: Just find a local. title company that your seller is content with.

For a very small fee, they' ll handle everything. - sell the property: if you decide to sell the. property, market it at 85% of the current market value. At the closing you' ll use the. money you borrowed to pay the discounted price you negotiated with the lender. for the mortgage. Be sure to get the. repairs completed as quickly as possible. Don' t try for even close to 100% of. the market value in this market( 2007) unless you' re prepared to wait a. long time to get it sold( often over a year these days) . New paint, carpet and landscaping go. a long way toward getting a property sold. Optionally you could. just rent the property( you' d probably have to arrange longer term financing) .

That is, a Lease. - you might even consider leasing with an' option to purchase' . Option. That' s it! You can get a much bigger deposit( actually a down payment) and it' s. generally a good bit easier than selling the property outright. Real estate investors are raking in millions of. dollars doing exactly what is lined out in the steps above.

Did you know that some people made fortunes as a result of the Great. - once in awhile some. tragic thing happens in the economy that actually provides great opportunities. Depression? Will you answer? Opportunity knocks.