Countrywide Financial reported Tuesday that borrowers with good credit are struggling: Payments were at least 30 days late on 4.56% of its prime home-equity loans in the second quarter of 2007. The delinquencies come on the heels of a record number of foreclosures.
WHAT TO DO:Investing in foreclosed homes can be profitable, but novices need to tread carefully. Generally, you can’t inspect homes prior to auction — a home in need of major repairs could negate a bargain purchase. Some may come with hidden liens or utility bills to pay. State and local rules vary, so understand the process before bidding and know the existing homeowner’s rights. Investors can find foreclosure listings at the county court clerk’s office or sheriff’s department. For a fee, Foreclosure.com and RealtyTrac.com provide up-to-the minute listings. A title-search company can help determine if there are any outstanding liens on a home. Also, consider negotiating directly with lenders to buy bank-owned homes. Countrywide, among other lenders, lists online homes it’s selling.
If you’re interested in learning more about investing in foreclosed homes, please send us an email or give us a call at 614.332.6984.
