Foreclosures

Buying a Foreclosure With Tenants

Purchasing a foreclosed home can be a great investment opportunity. Whether you’re taking occupancy yourself, or leasing the home to tenants, you’ll most likely see some gains from your purchase. But, what if the foreclosure already has renters taking up residence?

If you’re considering purchasing a foreclosure with tenants, you’ll first need to decide whether you’re going to live there, or continue renting it. Depending on the location of the home, there may be some state and local laws in place that will determine how you proceed. If there is a lease, tenants may be protected in a foreclosure situation.

Currently, Georgia allows renters to be immediately evicted, whether you’ll occupy the home or not. Some other states afford grace periods depending on how the property will be used. If you’re outside of Georgia, and there is an established lease, you may have to continue the terms until the lease expires. If the tenant is in a month-to-month situation, you may also have to give certain notice to vacate.

In most cases, the current tenant has been abiding by their lease and paying their rent, so they’re probably under the assumption that the bills are being paid. Unfortunately, the tenant becomes a victim in these matters, and finds out too late.

It may be a good idea to give notice to the tenant, especially if they’ve been following the lease terms. Angry tenants can set your goals back by possibly damaging the property, filing lawsuits, or even refusing to leave. Protect yourself by carefully following the eviction laws for your state.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan […]

Fulton County Tax Foreclosure Sales (and How to Find Them)

In the state of Georgia, it’s legal for the government to seize property, such as homes and land, for the nonpayment of taxes.

According to the Georgia Department of Law, a homeowner’s obligation to pay property taxes is backed by the property itself.

If a homeowner fails to pay, the county tax commissioner can sell the home to raise the amount due back in taxes. Often these homes sell for exceptionally low prices—but how does the whole process work?
How Does a Property Get Seized?
When a homeowner’s property taxes are past due, the tax collector can proceed through a non-judicial tax sale or a judicial tax sale. (The former doesn’t go to court, but the latter does.)
Non-Judicial Tax Sales in Fulton County
After the tax commissioner warns the owner and the payment deadline passes, the commissioner turns the case over to the sheriff’s department, issuing a writ of execution. The writ orders the sheriff to sell the property at auction to the highest bidder in what’s known as a sheriff’s levy and sale.

The sheriff must send out written notice and publish an official Notice of Sheriff’s Sale in the Daily Report.
Judicial Tax Sales in Fulton County
A judicial tax foreclosure sale, which is less common than a non-judicial tax sale is, requires the tax commissioner to go to court. The tax collector can take action exactly one year after the property taxes are due.

You’ll find properties up for judicial tax for closure sales in the Daily Report, as well.
Where to Find Tax Sales in Fulton County
Many REIs use the Daily Report’s online “Public Notices” section to find information on affordable properties that may actually be gold mines.
Do You Need a Hard Money Loan in Atlanta?
If you’re looking for a […]

Cashing in on Short Sales and Foreclosures

When you find a “diamond in the rough” house or commercial property, you must act quickly! Day after day, investors are hunting for houses and commercial properties—and they probably have their eyes focused on the same prize. Discovering a spectacular property at the right price is the name of the game.

If it is a short sale or foreclosure—you need to act right away. Banks are around to lend money and make money. They are not in the business of property management and most certainly want to dispose of the property as soon as possible. When a building or house reverts back to the bank, the lender then becomes responsible for things such as maintenance, insurance and property tax. Again, this is not their forte—so you must work fast!

After you decide that this is the right investment for you—what will give you an advantage? Cash in hand is still king when it comes to real estate. Considering that time is of the essence—a traditional lender will not be able to accommodate a fast turn-around—causing you to miss out on the deal of a lifetime. In addition, you are probably going to need some extra money to get the house or property back in tip-top shape, and the banks actually make it more difficult for you to qualify for a loan on a distressed property. Banks have stricter requirements for investment and commercial property loans.

Foreclosed properties aren’t going anywhere and investors are in the position to make this work in their favor, provided they move quickly. A hard money loan can get you the money you need to purchase the property—as well as fix it up—in less time than the traditional loan process.

If you need to […]

HUD Auctions Explained

Housing and Urban Development (HUD) homes are residential properties that have defaulted on a Federal Housing Administration (FHA) loan. It is a special type of foreclosure where the property becomes owned by government by extension of the HUD division. These properties can go for cheap, but are they worth it?

Generally, yes. However, HUD homes require a little more patience because these types of auctions deviate from the norm. There are two periods of a HUD auction – a time period where only owner-occupiers may buy, and then a time period where real estate investors may buy. If you submit your bid during the owner-occupier period, then you must live in the home for at least 90 days after the title is transferred to your name.
HUD Auctions and Earnest Money
Earnest money is basically a fee that secures your bid. It is typically around $500, but in some cases, it’s more. If your bid does not win, you will get this money back. If you are unable to follow through on your winning bid, one of the penalties is that the HUD division keeps your earnest money.
The Pros of HUD Auctions

Pre-appraisal. HUD homes have already been evaluated by credible government appraisers. These appraisals also have the added benefit of taking into account the repairs needed.
Special discounts. Depending on your profession, you may be granted you exclusive discounts. For a full list of those eligible, click here.

The Cons of HUD Auctions

Special checks. HUD auctions will take into account your income and credit score. These checks can be waived, however, if you have obtained funds from outside sources (such as a hard money loan).
No special financing. The HUD division does not provide any type of loan options, which […]

Could Hard Money Help You With Foreclosure?

If you have a foreclosure in your credit history, a hard money loan may be the best way to begin bouncing back. While your credit scores are important with this type of loan, they aren’t the only factor hard money lenders look at when choosing whether to extend you credit.

Hard money lenders typically lean on the fact that the house will be used as collateral, which means we’re often more likely than a conventional lender to understand that a foreclosure doesn’t necessarily mean you can’t handle credit.

Bank lending is generally very inflexible, and it doesn’t appear that that is going to change anytime soon. If your credit has suffered a major blow within the past several years, a hard money loan may be the perfect solution for you.
Could a Hard Money Loan Help You During Foreclosure?
In some cases, hard money loans are the perfect choice for people who need quick financial solutions. Generally, these types of loans are used by people who cannot wait for cannot qualify for conventional lending. Although real estate investors are the primary hard money borrowers, people who are actually going through foreclosure proceedings may benefit from taking out this type of loan.

A hard money loan may allow a homeowner to get out of foreclosure and give him or her the option of selling the home or securing new financing through a traditional lender.
Are You Facing Foreclosure?
If you are facing foreclosure, or if you have a recent foreclosure in your credit history, a hard money loan may be the appropriate solution for you.

Call us at 404-814-1644 or get in touch with us online. We may be able to help you get the financing you need so you can move forward […]

How to Get the Best Deals on Foreclosures

 

As a real estate investor, you know that you’ll make more money on a flip when you can buy as low as possible. In many cases, that means shopping the foreclosures.

But how can you be sure you’re getting the best deal possible without wasting time throwing low-ball offers that no bank will accept?

Choose the Right Day

Making an offer on a foreclosure that just hit the market is no way to score a bargain. Every bank has its own guidelines on when they’ll make a price drop—or accept a lower offer than list—but there are certainly some good windows of opportunity to find a bargain if you know when to act.

The trick is to strike when the bank is ready to negotiate but before other investors realize that fact. Most banks wait until 90 days have elapsed before they’ll budge, but others may review their unsold listings every 21 or 30 days. If you’re looking for a price break, consider making an offer on day 22, 31 or 91 after listing.

Research Quickly

Striking fast doesn’t mean going in blind. As soon as you see a foreclosure listing that interests you, quickly do your research to determine if it would be a sound investment. If it is, you’ll be ready to make an offer the moment you see a price drop.

Write a Clean Offer

There’s always the risk that you’ll be up against a competing offer. Banks want to liquidate their foreclosures quickly. A clean, cash offer will always carry the most weight.

Do You Need a Hard Money Loan in Atlanta?

If you need a hard money loan because you have your eye on a great investment property, call us at 404-814-1644 or get in touch with us online. We’ll be […]

Best Places to Find Real Estate Investments in Atlanta

If you’re an investor, how do you find the best deals?

Chances are that you’re always on the lookout for new sources. If you’re just starting out in real estate investing, you could probably use a nudge in the right direction – so here’s a comprehensive list of where you can find the best real estate deals.
Search the HUD Website for REI Opportunities
The U.S. Department of Housing and Urban Development maintains an extensive list of HUD homes for sale in Georgia. Using their website, you can access foreclosure listings from HUD, the Department of Veterans Affairs, and several other sources, including:

Customs
The Department of Agricultural Rural Development
The FDIC
The General Services Administration, or GSA
The IRS
The U.S. Army Corps of Engineers
The U.S. Marshal Service

It’s not uncommon to find multi-family properties alongside single-family homes, so depending on your investment level, you can find several options that may meet your needs.
Properties Through Lenders
Banks and mortgage companies typically have extensive lists of REO properties. Because of the large volume of these types of properties that most lenders deal with, they often work with brokers and REO listing agents.
Working with REO Listing Agents
REO listing agents work directly with lending institutions. They’ll have lists of all the bank-owned properties in the area, and if you can find out who handles a lender’s REOs, you’ll have a connection that can keep you in the loop as soon as new properties become available.
Securing Financing to Buy Your Investment Properties
If you need a hard money loan in Atlanta, we may be able to help. You can learn about the hard money loan process, get answers to your questions or fill out our online hard money loan application – or, if you’d like, you can call us […]

Hard Money Loans for Atlanta Foreclosures

Foreclosures in Atlanta and the rest of Georgia are higher than they are in the rest of the country, on average, and they have been for several months.

So what does that mean for you?
Atlanta Foreclosures: Good for Investors
Because Atlanta foreclosures are higher than usual – they’ve been on an upswing since January – that means there’s more opportunity for you, as an investor, to take out a hard money loan and pick up a property that you can flip. The selection is better, and you’ll likely spend less money than you would when properties are few and far between.
Is Foreclosure Investing Right for You?
Investing in foreclosures isn’t for everyone. In fact, many experts recommend that you gain some experience in traditional real estate investing before you dive in headfirst.

Here’s what you need to know:

There are three ways to buying foreclosures: from a property owner before it’s foreclosed (known as a pre-foreclosure), at an auction, or from a lender after the property has been repossessed.
Buying a property that’s owned by the lender may pose less risk to you than buying a foreclosure in the other stages.
You always need to check the title before you buy any foreclosed property; if you don’t, you could be taking an unnecessary risk with your money.

Need a Hard Money Loan to Invest in Atlanta Foreclosures?
Getting a hard money loan in Atlanta may be easier than you think. If you’re ready to invest in a foreclosure and you already know what it entails, give us a call at 404-814-1644 or fill out our easy hard money loan application. We may be able to get you the funding you need to make the investment of a lifetime.