Here's a little secret...The method of buying foreclosures explained here is not commonly known among newer real estate investors. It is a sophisticated tactic, but one that should be seriously considered by the determined investor.

It is an attractive way to acquire properties with much less competition than some of the other ways. And you can rest assured it is much safer than bidding at a foreclosure auction sale. Here's how it works...

There are two loans on a property. A homeowner has stopped making payments on both of them. The first loan is a mortgage of $100,000 held by a bank. The second loan for $20,000 is held by a small or private lender. This second loan is "junior" to
the first loan.

Since you are a clever investor, you check county records and you find the name of the junior lender. You contact that lender...

You explain that the property is facing foreclosure and his mortgage could be wiped out at a foreclosure sale. You make a discounted cash offer to buy the junior loan right now and lift the risk of the foreclosure sale off the shoulders of the second lender.

The junior lender, fearing his lien will be wiped out by a foreclosure sale, agrees to sell you the loans promissory note and trust deed at a substantial discount. Oh boy this is getting good!

When you buy the loan you step into the shoes of the junior lien holder. You now have the right to bring the payments current
on the first loan, which will stop the foreclosure. You then begin a foreclose action of your own on the property.Yes, you can do that!

As part of your investigation of every potential foreclosure deal you will check public records to learn if there is more than one mortgage lien on the property, if there is you may have found an exciting opportunity.

If you are negotiating to buy a property from a homeowner who is facing foreclosure and he is unwilling to accept a sensible offer you can turn to a junior lien holder and use the tactic explained here, buy the loan at a discount and foreclose on the homeowner. In effect you get two shots at a property if there are junior lien holders.

The drawback to this tactic is that you need plenty of cash or someone who will loan cash to you for
three to six months.

* This series was written by an investor and not an attorney. Nothing here should be considered legal advice. If you have a question about any contract ask an attorney BEFORE SIGNING!

Foreclosures are at all time highs. Learn here how to
market to find motivated sellers & buy their homes for a discount. 
Everything you need to profit...Customizable forms included.

Short Sales - A Guide for Foreclosure Investors


Because of all the foreclosures, banks are willing to discount the
loan amount still owed. This is called a "Short Sale". Find out
how to get banks to discount up to 40% and you keep the profit.

How to FLIP Short Sale Deals - No Cash Needed

Learn how to set up the short sales above and then flip them
to investors. You get paid big profits and don't need any money.

Making Money with Short Sales


Comes with everything you need to close your next deal in
45 days or less!