Investing in Foreclosure real estate in Kingwood Texas

Real Estate Attorney with Law Office of Bryan Fagan

Trash becomes treasure in the eye of the beholder.And with reason,this Latin proverb has been around for a very long time. Someone else's difficulties are another persons financial chances.

Among the biggest portfolios builders over the past ten years or so is Foreclosure investing in Kingwood Texas. No longer is the era of easy credit standards, meaning that the adjustable-rate, subprime mortgages that were so easily obtained these past few years in Kingwood Texas will now be shifting to a higher rate of interest. With those subprime loans making up nearly a fifth of all home loans according to Fitch Ratings, an investment analysis firm, a large number of people tenuously holding onto their properties right now in the Kingwood Texas real estate market will probably be losing their grip completely sooner rather than later. In the currently decimated real estate market in Kingwood Texas, investors will find that there are more opportunities than ever to return to basic marketing skills and fill in the holes.

Foreclosure purchases seems to be the way to go,everywhere one looks in the real estate investing game. Banks are not set up to be landlords, so they often auction off the houses as quickly as possible, with their only requirement being that the amount the house sells for covers the amount owed, and it be paid in cash. The investor gets large savings since he is paying for the house outright. This means, of course, an extremely competitive field, in which most investors prefer paying the bank the lower cost, as opposed to purchasing the investment property outright.

Rather than engaging in direct competition with the hordes of other foreclosure investors in your area, you can make your move before the foreclosure occurs. This also gives provisions for obtaining a conventional loan rather than requiring cash upfront, benefiting the casual investor who does not have a large amount of money to put down.A "pre-foreclosure" purchase is the type of transaction that deals directly with the homeowner, prior to the homeowner completely defaulting on their loan. Very few investors mess with these opportunities because it is not a large price-cut like it is at auctions. Pre-foreclosures in your area can be identified by titles filed by the lender with a lis pendens, or suit pending, and are kept at the Office of the County Clerk.

Do not contact a potential seller until your own financing is set and ready to go. These types of real estate transactions are time-sensitive, meaning that just a few days delay could mean that the auction houses lose out on a great opportunity. Also, use the experience in foreclosure sales that a real estate buyer's agent will have, you will gain security and know that your interests are important. There are very few things that can beat the thrill of going to a foreclosure auction. As exciting as that may be, there are safer ways of securing investment properties below market price, without going up against professional investors through the pre-foreclosure sale. Foreclosure investing, like all types of real estate investment, has a number of faces, and choosing which is best for you involves careful deliberation before moving in for the sale.

For More information about Kingwood Real Estate in Texas or Humble Real Estate in Texas feel free to contact me or check out my website at 

Comments (2)

Team Honeycutt
Allen Tate - Concord, NC

Foreclosures are very popular here, There seem to be really good investments on our market now.

Jan 01, 2010 05:32 AM
Dawn Workman
Veracity Real Estate Group, LLC - Camas, WA
Camas Real Estate Expert, MBA, 480-540-8100

Foreclosures are hot and you can get some amazing deals!

Jan 01, 2010 05:33 AM