When Buying Foreclosures, Loan Modification Equals Free Profits

When Buying Foreclosures, Loan Modification Equals Free Profits

Article by Jason Loucks

Everyone knows that there is money to be made when you buy foreclosures. However, many people limit the ways that they buy these properties by not exploring all of their options or settling for one method of foreclosure buying when there are many different options to choose from. If you take the time to learn about all the different ways that you can buy foreclosures, you’ll find better deals and more profits than you might have ever imagined.

Loan modification will allow you to buy properties with no cash up front. You can finance the loan so that all the past due payments are either added to the monthly payments or the end of the loan, and assume ownership of the property subject to the loan of the owner to make the payments. Then, when you sell the property for more than what is owed, you get to pocket that money without investing a single cent. Here’s a breakdown of how it works.

First off, loan modification is also known as recasting or streamlining. It doesn’t matter what you call it, because this is how it’s done. Most banks are willing to offer this service to their customers because they just want their money and want to avoid the hassles of foreclosure as much as the owner does. They’ll either tack payments onto the end of the loan to make up the balance, thereby extending the loan, or they’ll add it to the monthly payments so that the defaulted amount is made up over a span of many months by paying more than you normally would. You can take over that debt, take over the property, sell it for more than what is owed, and your profit is the difference. And you can do all of this without a dime invested into the process.

Loan modification isn’t the only way to buy foreclosures without money upfront. However, it is probably one of the easiest and best ways to do it. When the bank modifies the loan, you’re left to pick up where the payments left off, and can carry on for as long as you’d like. Once you’re ready to sell (you’ve got all the time in the world since you brought the property current in its payments) you can list it for whatever it’s worth. Say you sell a home for $ 268,000 when the loan is only for $ 240,000. Everyone wins, including you, because you walk away with a profit of $ 28,000 for investing absolutely nothing!

For more great Foreclosure Investing secrets from Jason Loucks and a FREE CD on how you can start profiting from Foreclosures, Preforeclosures, Short Sales, and REO’s for yourself, go now to: http://www.PreforeclosureFortune.Com










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