Looking to inverst in a foreclosure

With 700,000 bank-owned homes on the market, and another one million in some state of foreclosure, you might be tempted to add a distressed property to your portfolio. Beware! Buying a home in foreclosure is not for the meek.

1) Whether you're looking to flip a home, buy into a neighborhood you couldn't otherwise afford or planning to rent the home, you must have cash on hand. Even if you have a renter lined up or have enough money for a 10% to 20% down payment, you should be prepared for the worst, a depressed real estate market for the next 2 or 3 years.
2) Bad loans that plagued the seller don't simply disappear when owners sell their properties. In some situations, outstanding fees, second liens and the like don't automatically disappear. Making sure a home has clean title is a critical step to a sound investment otherwise you'll just be trading places with the distressed homeowner.
3) However you do the math, the most important thing to keep in mind is the investment has to be worthwhile--even if you can't sell the home at your desired price for two or three years and the current housing market deteriorates a further 10% to 20% .If that's a model you can live with, it might be time for a subscription to my foreclosure list. Send me an email and I'll send you an updated list every week. And of course it's free, so what do you have to loss.