Investing in Foreclosures in and around Kingwood Texas

Real Estate Attorney with Law Office of Bryan Fagan

"One man's loss is another man's gain.This is an old Latin proverb that has been used for centuries. A savvy investor can turn those difficulties into a waterfall of financial chances for his or herself,despite the compassion for another person's difficulties.

Foreclosure investing in the last decade has been great at improving your portfolio. The era of easy credit standards has finally come full circle, which means the adjustable-rate, subprime mortgages handed out so readily in the past few years will be shifting up to a higher interest rate. Investment analysis firm, Fitch Ratings, estimates that twenty percent of all residential mortgages can be described as sub-prime, which means that a significant number of home owners who are now holding on to their properties by the skin of their teeth may have to let go of their homes sooner than anyone expected. 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.

The best option for those in the real estate business, right now, is foreclosure. Simply put, banks are in the business of money. Any bank will put a house on the auction block to get rid of it quickly. Usually the only requirements are that the debt owed is paid off with cash. That generally means a big savings to investors who have the means to pay outright for the house at auction. 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.

Moving prior to foreclosure is one feasible alternative to battling with the hundreds of foreclosure investors in your area. This also provides an opportunity to get a conventional loan for the property purchase rather than having to have cash upfront, giving the more casual investor a chance at a good deal without having to pony up a lot in the beginning of the process. A "pre-foreclosure" purchase is the type of transaction that deals directly with the homeowner, prior to the homeowner completely defaulting on their loan. Few investors bother with this kind of opportunity as it's not as big of a price-cut as buying at auction, which cuts down considerably on the competition. You can find a list of pre-foreclosures at your county clerk's office by looking for titles with "lis pendens" notices that were filed by the lender.

Before placing that call to make an offer, make certain that you have financing in place. You don't have extra time with these deals, a couple days and the property can be sold. Additionally, working with a real estate buyer's agent with experience in foreclosure sales will provide security that your interests are well looked after. 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. As with any type of real estate investment, foreclosure investing has many different options, and each should be carefully measured before moving forward with the sale, to find the best fit for your needs.

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)

Katie McBride
RE/MAX Executive Realty - Hopkinton, MA
The McBride Team

Good information.  These types of sales can be difficult to navigate.

Feb 03, 2010 09:41 PM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Being ready to buy with the money in place before getting ready to buy.. good advice

Feb 03, 2010 10:01 PM