Reaping repo rewards
Want to brave the wild world of foreclosures? Follow this advice.
NEW YORK (Fortune) -- As home prices continue to skid and foreclosure rates soar (up a further 38% since the third quarter of 2007), some investors are on the lookout for outrageous bargains. Think you're ready to jump in?
Some transactions require that you close within days. That's not enough time to get a bank loan. A so-called hard-money loan is an option, but you'll pay 15% plus points, and you can't count on refinancing right away.
Foreclosures are typically sold as is, where is, but you can inspect the property before you bid. Even after you put down a deposit, you can change your mind and get your money back. Private auctions typically offer a bigger window for deliberation than public auctions on the courthouse steps.
You don't care how much the lender has discounted the note; all that matters is how much the house is really worth. Only an appraiser can tell you that. Could cost you a few hundred dollars to find out. Could save you a few hundred thousand dollars once you know.
Instead of foreclosure, Scottsdale real estate advisor Robin Reed often advises what's known as a short sale - a negotiated transaction involving you, the bank, and the homeowner prior to formal foreclosure. You'll have more time to arrange financing - and since the lender has fewer costs to recover, you may get a better price. Check public NOD (notice of default) listings for prospects. 
-
Senior account execs at Salesforce.com take home an average $249,607 annually. Who else offers big money? More -
There's a new No. 1: tech powerhouse SAS. Yes, some firms still dole out perks like onsite saunas and fun classes. Meet this year's top 100. More -
Gold, oil, stocks, and bonds - all are seeing prices well beyond their historic averages. More -
The Revlon chairman has battled exes in court. But then he tried to sue his ex-father-in-law. More -
Good guy? Bad guy? Either way, the controversial broadcaster is looking for his next big gig. More -
Studies suggest that raises will be scarce in the coming year. But starting salaries in some fields are rising. More -
These Best Companies are remaining loyal to their workers, even in a downturn. See how they do it. More
