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    You see bits and pieces foreclosure deals all around. The buzz is that they are very profitable. But what is really happening? How do foreclosure deals work?

    It all starts when a borrower misses a few payments. At some point the bank decides to foreclose and files the appropriate legal documents with the county. The clock is then ticking. The timing varies by state - some states have months and some states have weeks - between the official filing and the actual foreclosure auction. It is during this period that investors can help the defaulting homeowner by buying the property. The intention of the investor is to buy the house for the loan amount and let the home owners walk away without a foreclosure on their credit record and maybe some cash, depending on the eq

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    It all starts when a borrower misses a few payments. At some point the bank decides to foreclose and files the appropriate legal documents with the county. The clock is then ticking. The timing varies by state - some states have months and some states have weeks - between the official filing and the actual foreclosure auction. It is during this period that investors can help the defaulting homeowner by buying the property. The intention of the investor is to buy the house for the loan amount and let the home owners walk away without a foreclosure on their credit record and maybe some cash, depending on the e

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    county. The clock is then ticking. The timing varies by state - some states have months and some states have weeks - between the official filing and the actual foreclosure auction. It is during this period that investors can help the defaulting homeowner by buying the property. The intention of the investor is to buy the house for the loan amount and let the home owners walk away without a foreclosure on their credit record and maybe some cash, depending on the e
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    ctual foreclosure auction. It is during this period that investors can help the defaulting homeowner by buying the property. The intention of the investor is to buy the house for the loan amount and let the home owners walk away without a foreclosure on their credit record and maybe some cash, depending on the e
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    s to buy the house for the loan amount and let the home owners walk away without a foreclosure on their credit record and maybe some cash, depending on the equity in the house. This is great for all – the owners’ credit is still decent, they get some money to start over, the bank gets paid and the investor gets a house with built-in equity.

    Sometimes, however, the house is worth less that the loan amount. Then the investor, with the permission of the homeowner, works with the bank to take less money than is owed for the property. This is called a short sale. Why would a bank do that? If they continue through the months and months of the foreclosure process, the bank has funds tied up that they can’t use. That costs them money. Plus, once the entire foreclosure proce

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