Foreclosures are rising rapidly during recent very difficult economic times, as public and private debt mounts. You can profit by investing in any offering that can be found in today’s real estate environment among the growing community of homeowners in default. It will greatly simplify the problems for the other parties involved (the owner and the lender) if there is a larger pool of buyers available to offer an alternative sale to struggling homeowners.

A rising default rate is not good for the banking community, which is stuck with larger inventories of foreclosed homes that don’t bring in revenue. A homeowner who has seen their property values ​​depreciate to the point where they are in a negative equity situation (more is owed on the house than there is equity in the house) could definitely use a loan workout or , failing that, a buyer to negotiate a short sale to cure the situation of the overencumbered property. And real estate agents could also be relieved of the hassle of selling properties burdened with such problems in a slow market.

You can solve each of these aspects of the delinquency crisis by actively pursuing the purchase of foreclosed homes. The best way to do this is to first decide where you want to buy the properties (both in terms of location and in terms of a given case). Talk to lending sources to get your financing in place or “cash in hand” to quickly make a good offer on a promising home. Consider working with agents to help simplify seller hiring and paperwork completion. Finally, gently approach the owner and inspect the premises, to verify that he can really help you once you know all the details. Through this process, you can obtain a bargain property while relieving the bank and the owner of a financial headache.