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California Foreclosure Institute


									                                     Lloyd Segal

California Foreclosure Institute: Well, it depends. What do you enjoy doing the most?
If you enjoy foreclosure investing and feel you can replace your full-time income by
handling three or four more foreclosures deals each year, why wouldn't you? If you feel
you could put more money in your pocket by handling five or six more foreclosures (and
again, you enjoy the work), so much the better. So if you enjoy foreclosure investing and
you can earn more, why not?
Lloyd Segal: You may notice that a couple of these options could result in you not buying
the house. But that’s okay, because in order to act with integrity, you must accept the fact
that you may not always get the deal. Sometimes just helping people should be your
priority. So always do the right thing. Ideally, you want to create win-win situations;
situations in which the homeowner rids themselves of an unwanted house and you buy a
property below market. But if that’s not possible, help the homeowner anyway.
The mortgage holder can usually initiate foreclosure at a time specified in the mortgage
documents, typically some period of time after a default condition occurs. Within the
United States, Canada and many other countries, several types of foreclosure exist. In the
U.S., two of them – namely, by judicial sale and by power of sale – are widely used, but
other modes of foreclosure are also possible in a few states.

California Foreclosure Institute

Aside from bringing payments current or selling the property, the only other way the
homeowner can stop the foreclosure is by declaring bankruptcy. As soon as the
homeowners files, the Court issues an “Automatic Stay,” which basically freezes
everything, including the foreclosure. Creditors (including the foreclosing lender) then
file motions in court to have the stay lifted (released). If the court lifts the stay, then the
foreclosing lender can proceed with the foreclosure. So ultimately, nothing has been
gained. Bankruptcy used to be good idea for homeowners because this process took one
to two years. It was though the home was lost in purgatory. But with the new bankruptcy
laws and the fast track process, the automatic stay lasts no more than one to two months.
So bankruptcy is no longer the panacea for homeowners it used to be.
The number of foreclosures on the market (especially those with steep discounts) is
directly proportional to the area's progress toward real estate market recovery. For
example, Southern California experienced an 18% increase in home sales in October;
therefore, it may be harder to find steeply discounted foreclosures in this area.
Lloyd Segal: But don’t get me wrong, it is not easy. If it were easy everyone would do it!
Investing takes work. But if you’re willing to do the work, I’ll give you the knowledge.
And if you use the techniques in this book, you’ll become a successful foreclosure
investor. So read on with the confidence that you’ll be learning investment secrets that
most real estate veterans never share, and most novice investors never learn. As the
saying goes, knowledge is power. The knowledge you will gain by reading this book will
empower you to invest with confidence.
More information: California Foreclosure Institute, Lloyd Segal.

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