Bank Owned Foreclosure- When a property is lost via foreclosure it goes back to the bank and then becomes one of the now thousands of bank owned foreclosures (or REO properties) on the market today.

Preforeclosure- Any time prior to a foreclosure auction, a property is said to be in preforeclosure, a time when you can work directly with property owners.
Short Sale- When a preforeclosure property is negotiated to be paid off for less than what is owed to the bank, this is referred to as a short sale. Massive profits can be earned with short sales because deals don’t just exist, they are created.

Lis Pendens- This is the initial filing by a lender that a loan on a property is in default and that they are pursuing foreclosure as a remedy. This is usually when investors can first discover that a property is in preforeclosure and worth pursuing. It is also when your competition (who include realtors, mortgage brokers, bankruptcy attorneys, and loan modification counselors) discover the same so you need to have a solid game plan in place to effectively operate in a competitive marketplace.

Real Estate Investment Training- This is any dedicated effort by an investor to learn the tools of their trade from those who have walked that path before them. Serious investors should consider real estate investment training (including training that is specific to foreclosures and short sales) as mandatory precursors to running a successful real estate investment business. Whether the training is of the free variety or through paid training services offered by real estate experts, the point is to do anything to avoid going into a new business unprepared.

While this is just a start, these foreclosures definitions should be studies and committed to memory because they will soon become the foundation for your business as a real estate investor.

In today’s market, foreclosures as much as part of real estate investing as any other part of the business. Make sure you have a steady source of leads and a professional team to assist you because the deals are out there to be had. Commit yourself to real estate training (including knowing the foreclosures definitions I’ve mentioned in this article). I wish you the very best in success in real estate foreclosure investing and in business as a whole.

D.C. Fawcett learned the real estate business from the ground up and now operates a world class investing business out of the Tampa, FL market. His training programs specialize in showing real estate investors how to achieve success in the real estate foreclosure market and have gained broad appeal around the country. You can learn more about D.C. Fawcett’s training philosophy and his programs by visiting www.dcfawcett.com.

With an unprecedented number of foreclosures sweeping the nation, there has never been a more lucrative opportunity for real estate investors. Specifically, there is an overwhelming number of homes being returned back to the bank because the homeowners can no longer afford the monthly payments, causing the current “mortgage meltdown.”

The most successful strategy in the current real estate market that helps all parties involved is the short sale. With a short sale, the bank agrees to takes less than the full amount owed on a mortgage that is currently facing foreclosure. When done correctly, the short sale creates a win-win-win opportunity for everyone involved: The bank, the homeowner, and the investor.

The bank wins by taking a discount on the mortgage rather than spending months being trapped in the foreclosure process. They get some money now, rather than going through the time and hassle of selling the house. The homeowner wins as they get out of a mortgage that they can no longer afford without going into bankruptcy and hurting their credit rating. And of course, the investor wins by selling the house and making a substantial profit.

Dr. Larry Litman, successful foreclosure investor and co-author of the Foreclosure Success Guide, explains, “I’ve personally picked up houses that were facing foreclosure for $60,000 with a short sale, then I was able to turn around and sell it for as much as $80,000 just a few weeks later. That’s $20,000 of profit for just five to seven hours of work”

However, without the right system, these short sale deals can fall apart before they even start. Working with the bank to complete a successful short sale is rather difficult without the right strategies.

Dr. Litman’s son and business partner, Mike Litman explains, “You’ve got to have a proven system and do it right to get those kind of results. The fact is there have been a lot of people entering the foreclosure market without the right plan, and they got burned. We’ve made our share of mistakes along the way, and we want to help people avoid making these same costly errors. The foreclosure epidemic is a great opportunity for those who are properly informed.”

A successful short sale investment involves several critical steps. First the investor must find qualified leads, usually homeowners who are facing preforeclosure. This means that they are behind on their mortgage payments, and the bank will soon begin the foreclosure process and seize their house.

Next, the investor negotiates the purchase price with the bank. In a short sale, the investor offers the lender less than the full amount of the mortgage, but because the homeowners can no longer make any payments at all, banks will often sell these houses at a discount. The negotiation process involves putting together a short sale package and getting a broker’s price opinion (BPO).

Finally, the short sale investor must sell the house for more than the price the bank negotiated for it. The amount that the investor sells the house for above what they bought it for from the bank is pure profit. With the huge number of foreclosures banks are dealing with, it is common for foreclosure investors to earn $10,000 for each short sale deal they do.

While the overall process is simple, there are several pitfalls along the way that may prove to be costly mistakes for novice real estate investors.

To help beginner investors avoid these errors, the Litmans have released a step by step walkthrough titled “The Foreclosure Success Guide” which offers foreclosure investors strategies on finding preforeclosure leads in their area, negotiating with the bank, and selling the house for a profit.

The guide also offers advice on automating the entire process, which the Litmans say takes only five hours of actual work from start to finish.

These foreclosure investing strategies have only be found in expensive real estate training courses and seminars until now. The new report called the Foreclosure Success Guide can be downloaded entirely for free at http://www.foreclosuresuccessguide.com.

With all the real estate foreclosure investing options out there, I think the greatness of the current market also can be risky for the investor because, without the proper short sale training or even basic foreclosure training, you run the risk of not really knowing what you are doing. Profits can be lost and so too can foreclosure opportunities when you lack the proper real estate foreclosure investing training.

Real estate foreclosure

investing is an amazing opportunity but there are many aspects to consider, especially if you are really going to learn real estate short sales. Good foreclosure training and good short sale training programs cover all the features you need to learn, including marketing, negotiations, and even the emotional aspect of the sale, a natural by-product of foreclosures that can often complicate short sale deals.

My efforts here are to assure you that there are indeed unlimited deals to be found within the realm of real estate foreclosure investing. Whether you’re just curious how to make money with foreclosures or really dive in and engage in serious real estate foreclosure investing (made easier with quality loss mitigation training), then you owe it to yourself to check out my Preforeclosure Cash Flow System and the many short sale training modules within it that cover how to really launch your career in real estate foreclosure investing.

In closing, the entirety of the foreclosure process is ripe with deals that are there for the picking. In today’s market, the short sale process is as much as part of real estate foreclosure investing as any other part of the business. Look at other types of foreclosures too and keep your eyes open because the deals are out there. I also suggest that you commit yourself to real estate short sale training, and your pursuit of real estate foreclosures, investing in them, and profitability will be more productive and more rewarding. I wish you the very best in success in real estate foreclosure investing and in business as a whole.

By D.C. Fawcett, Business Building Coach to the Foreclosure Industry

For more information visit: http://www.realestateforeclosuresinvesting.com

Investing in real estate foreclosures is an amazing opportunity but there are many aspects to consider, especially if you are really going to learn real estate short sales. Good foreclosure training and good short sale training programs cover all the features you need to learn, including marketing, negotiations, and even the emotional aspect of the sale, a natural by-product of real estate foreclosures that can often complicate short sale deals.

My efforts here are to assure you that there are indeed unlimited deals to be found within the realm of real estate foreclosures. Whether you’re just curious how to make money with real estate foreclosures or really dive in and engage in serious short sale training (sometimes called Loss mitigation training), then you owe it to yourself to check out my Preforeclosure Cash Flow System and the many short sale training modules within it that cover how to really launch your pursuit of real estate foreclosures.

In closing, regardless of timing or the nature of the foreclosure process in your area, real estate foreclosures provide opportunities that are there for the picking. In today’s market, the short sale process is as much as part of real estate foreclosures as any other part of the business. Look at opportunities with other types of real estate foreclosures too because the deals are out there. I also suggest that you commit yourself to the proper type of training, and your pursuit of real estate foreclosures will be more productive and more rewarding. I wish you the very best in success in real estate foreclosures and in real estate investing as a whole.

By D.C. Fawcett, Business Building Coach to the Foreclosure Industry

For more information visit: http://www.realestateforeclosuresinvesting.com