October 2009

Investment Exchange

An educational real estate newsletter

HOT MARKET

You already knew the housing market was hot. We're here to tell you it's hotter than ever.

Historically low home prices and interest rates, coupled with an $8,000 tax credit and other incentives for things like "green" renovations, means you can get in on a fantastic deal and still have cash left over in your pocket.

Foreclosure.com is here to help you navigate the exciting process of distressed property investment, but you won't have forever to make a decision.

New foreclosure rates are slowing. Housing prices are stabilizing in many parts of the country. The $8,000 tax credit vanishes in just two months.

What does it all mean? The time to act is now.

If you've been considering getting on the property investment train, you should know that there has never been a better, less risky time in history to find a property that you love at an incredible bargain. And, if you want, make an absolute killing on it in the near future.

It's time to get your piece of the pie!

Foreclosure.com has all the tools you need to get rich in the distressed property market, so visit us today and get searching for a fabulous deal in your area ... before it's too late. In the meantime, whet your investing appetite with our latest "Investment Exchange" installment, which details the "Hot Market" near you.

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Site feature spotlight

BROKERS DO THE LEGWORK

One of the most daunting aspects of getting your hands on a distressed property you love is the work involved.

It's not that you're afraid of a little hard work, but to-do's like finessing the distressed homeowner and negotiating with the lender can make you feel like you're in over your head.

Foreclosure.com's Broker Network is here to help.

With more than 9,000 brokers across the country, it isn't hard to find a great agent who's willing to do all the heavy lifting for you.

Qualified agents will:

• Help you find and evaluate homes
• Advise you on the neighborhood and community
• Talk to distressed homeowners on your behalf
• Negotiate pricing
• Approach lenders with researched offers
• Help you figure out growth potential

Remember, these agents are experts in their areas, which means if you want advice on the history of property values, quality of schools, crime rates, nearby shopping and entertainment, and more, they can help you.

Location is key. And an experienced broker can give you the inside scoop based on years of experience in an area. It's the perfect way to avoid buying blind in a neighborhood you know very little about.

To find the absolute best of the best in your area, be sure to look for Foreclosure.com's Certified Foreclosure Agent seal of excellence. This mark of distinction means that the broker you're looking at has completed one of the certified training programs at Agent University.

Agent University gives brokers the cutting-edge tools they need to get you into the distressed properties of your dreams. Look for the Certified Foreclosure Agent or Certified Short Sale Agent seals in the Broker Network listings or on the agent vCards on Foreclosure.com's listing details pages.

Get in touch with a broker in your area, whether you're dying to get in on a specific property or just curious about their expertise. You'll be pleasantly surprised by the number of resources your broker has available to help you seal the deal on the house of a lifetime.

Just pick a property that you love in a primo neighborhood. Let your broker handle the rest.

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Web site search tips

GOING ONCE, GOING TWICE, SOLD!

Buying distressed properties via online auction is becoming one of the most popular and profitable ways to get the investment deal of a lifetime.

Foreclosure.com has partnered with the industry's top real estate auction Web sites to bring you the quality, service and support you need to make the best purchase decision for your investment goals.

REDC is one of the most reputable auction companies in the United States, accumulating more than $5 billion in sales since 1990. This amazing number means that REDC has helped astonishing numbers of people become homeowners, quickly and affordably.

View auctions now.

RealtyBid, another outstanding auction partner, has attracted more than 30 million homebuyers to their auction Web site since its inception in 2001. These staggering numbers can be attributed to RealtyBid's reputation for excellent service and a streamlined auction experience.

View auctions now.

To search several of the hottest auction listings on the market right now we encourage you to visit our REDC and RealtyBid pages. October boasts over 1,000 properties waiting to be snapped up by smart investors.

That means you!

Both of these auction houses can also help you learn the ropes of buying online, including how to find the best auction in your area, the auction process and how to get your chance to inspect REOs that are on the bank's "must sell now" list.

You can also find these highly sought-after properties simply by doing an ordinary Foreclosure.com search. Once you select your desired state, a box at the top gives you the run-down of the types of listings available, including auctions.

Remember, you want to act quickly on any listings that pique your interest. These great deals never last long!

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Hot off the press

WE PUT THE 'SHORT' BACK IN 'SHORT SALE'

It's only been a couple of weeks since we had the official launch of QuickSale^SM, but the rave reviews are already pouring in.

QuickSale^SM is a new initiative designed to take the headaches and nightmares out of the short sale process. The result is a cleaner short sale that is what it's supposed to be: short.

How have we made the process so efficient?

Check this out:

• Aggressively-priced properties
• Sales close in as few as 45 days
• Centralized process keeps all parties on the same page
• All the paperwork stored in one convenient place
• Get the best terms on bank-owned homes, homeowners avoid foreclosure

It's a win-win, streamlined process that makes buying short sales quicker, easier and more valuable than ever.

QuickSale^SM properties are easy to find on Foreclosure.com — they are prominently displayed at the top of the page once your initial search results are returned. In addition, we have added a QuickSale^SM tab to our search navigation for even easier searching.

These homes are priced to sell quickly because they must close before the homeowner goes into foreclosure. That means you have to act fast on any property that catches your eye.

If you're an agent, you can register with us right here. If you're a buyer, you can start searching for great deals in your area right now. However, you'll need help from an agent to submit bids online.

Currently, QuickSale^SM has rolled out listings in Florida only, but the nationwide launch will happen soon, so check back often.

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Our success stories

HOME SCHOOLING

It took several months, but the results were worth it ... literally.

Jeanette Francis, an associate professor at Lynn University in Boca Raton, Fla., put Foreclosure.com to work to find that perfect property.

Her patience paid off.

"I looked at about nine houses before this one," said Jeanette. "And in one instance, the contract was approved and I had the home inspection done, only to find out the house needed more that $60,000 [in repairs] and the foundation was sinking."

She got out of the contract and kept looking until she found a gem in a nice, quiet neighborhood that suited her lifestyle and comfort zone.

For Jeanette, that's a gorgeous single-family home with granite countertops, hardwood floors and beautifully textured walls and ceilings.

"No renovations were needed because the bank had done it all prior to placing the house on the market," added Jeanette, who appreciated a move-in ready property in a fantastic location.

And the price tag? About $45,000 less than its current market value. Not a bad chunk of change to take to the bank!

When Jeanette's not enjoying her new home, she's shaping young minds inside the classroom. Her students' latest assignment is the Foreclosure.com scholarship competition.

The scholarship is for current and incoming college students. Their mission is to write an essay about how to solve the current foreclosure crisis in the United States. The top five essays will receive cash prizes and their plans will be sent to Congress and the President himself for consideration.

Jeanette is encouraging her students to participate in this exciting competition because she believes that it is in society's collective best interests to figure out what's going on in the economy sooner rather than later.

"Take advantage of the Internet and get to know the market very well," she advises. "That way you can make informed decisions that you're comfortable with, without relying solely on the advice of others."

It's an important life lesson that her students are lucky to be getting from both a great teacher and a happy new homeowner.

For more on the Foreclosure.com Scholarship Program click here.

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Real estate tips

THE CLOCK IS TICKING

Time is running out!

First-time home buyers have until Nov. 30, 2009, to get their hands on their new homes so they can take advantage of the $8,000 tax credit.

Unlike last year's tax credit, which was really more of a zero-interest loan, your $8,000 never has to be repaid. Even better, if your tax bill is less than $8,000, the government will send you a check for the difference.

That means that if you only owe $2,500 in taxes, you could have a $5,500 check coming your way.

To qualify for your $8,000, you must be a first-time homebuyer who has filed their taxes. You also have to hang onto your house for at least three years, or you'll have to payback the government.

It's a fantastic incentive that can make the below market value property you find on Foreclosure.com an even more amazing deal. You only have a couple of months, though, and it can often take at least that long to close a deal, which means the time to act is now.

More good news: the powers that be are also maintaining their low interest rates in an effort to encourage homebuying. The decline of property values has all but stopped and rock-bottom interest rates are being offered as a way to encourage you to buy in what is already a buyer's market.

No one knows for sure how long these great incentives are going to last, but one thing is certain: all good things come to an end. Get rolling right away so you can be one of smart buyers who gets an amazing property for a great price with an unbeatable mortgage and, oh yeah, $8,000 in your pocket.

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Deals of the Month

HOT FORECLOSURE DEALS!

Birmingham, AL
$233,900
4 beds/3.5 baths
3,500 sq. ft.

Benton, AR
$314,900
5 beds/3.5 baths
4,702 sq. ft.

Nampa, ID
$52,900
3 beds/2.5 baths
1,000 sq. ft.

Linda's Learning Lane

Oh where, oh where are the hottest markets?

That depends on what you define as hot.

If you are like me that would be anywhere the temperature rarely ever (or never) dips below 70 degrees. Accordingly, South Florida is scorching right now.

If you are interested in capitalizing on significantly discounted homes then now is the time to find a foreclosure or preforeclosure. We hear all the time about deals going for 60 percent less than the price advertised just a year or so ago, which gets me very excited about the possibilities.

You should too!

Not interested in South Florida? No problem. You can probably find a hot market right in your own backyard. Every neighborhood has its own hot deals. And there are plenty of ways to find them.

With basic knowledge and some negotiating skills you, too, could join those who are prospering in this buyers market. By searching Foreclosure.com, as well as scanning through the FREE email alerts that hit your inbox every time a new property is posted in the zip codes you are monitoring, you will be able to identify these great deals pretty quickly.

Here's a quick tip: Water properties will always hold their value — statistically 80 percent of the nation lives along the coastlines. So if you like water and dream of having that beach house someday, start laying out your strategy now to make that dream a reality.

Set a goal, create a master plan, and as I always say, get educated! Remember, knowledge isn't power but applied knowledge is.

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