What is Foreclosure?
Foreclosure is the process of terminating the rights the homeowner has in regards to their mortgage. It becomes the court process in of default in reference to the vesting of the mortgage. Essentially it is when someone loses their home to the bank because of defaulting on their loan.
What is the foreclosure process in Memphis?
The foreclosure process in many states is long and tedious, however in Memphis, Tennessee, this is not the case. I Tennesseee the process is quick. The state does not force lenders to go to court to foreclose. Typically mortgage lenders start the foreclosure process until a homeowner is several months behind on the mortgage. Additionally a title search must be performed along with a notification of liens. When these steps are complete, the lender advertises the foreclosure in 3 weekly notices in a general circulation paper in the county where the house is located. The sale follows. This can happen in as short of time as 22 days.
Many times the speed of the process takes people by surprise. People used to file bankruptcy to stop the process. Now with the new bankruptcy laws, there are additional requirements in order to file. Many attorneys will not take these cases on at the last minute like they used to. - David Flawn, Memphis Commercial Appeal
Why invest in Memphis foreclosures?
Investing in Memphis foreclosures can be profitable for many reasons. First, in most cases you are purchasing the home at a substantial discount. It is possible to buy investment property in good rental areas for 40-70 cents on the dollar in Memphis. It is likely though the property will need repairs. Much of the time, the homeowner has left the property in disrepair. So you will take some risk when investing in foreclosures as these are typically sold in "as-is" condition. However with the large equity spread in the property, you are likely to get positive cash flow after your mortgage, property management fees, repairs, taxes, insurance, and other expenses. Essentially you have more risk but higher rewards. This is opposed to say buying properties using a traditional real estate agent that gets you a slight discount and you have minimal positive cash flow. Most of the properties we buy, sell, and own in our own real estate investment portfolios are foreclosures.
How to invest in Memphis foreclosures?
Investing in foreclosures in Memphis can be difficult and time consuming. First you can utilize publications like the Memphis Daily News to locate the foreclosure notices and actually go to the courthouse to try to purchase them. Or you can utilize a traditional real estate agent to find deals, gather rehab quotes, and make offers for you. Unfortunately it seems that the people in the know get most of these deals. Additionally you would have to be using an agent that is an expert in rehab quotes, identifying rent ranges, making tons of offers to get a good price, and willing to be in the trenches working hard for a 3% commission on low priced deal. It will be difficult to find an agent that is going to work very hard for you to earn a 3% commission on a $30,000 deal.
Investing with our group solves most of these issues. Essentially when you invest in real estate with our firm, we will do all of the above for you. We make 100's of offers a month and work directly with many banks and sources of foreclosures to purchase them at extremely low prices. Additionally, we have contracting experts we work with that will provide solid bids of any work that is to be completed along with detailed photos, time lines, and draw schedules. We know how the process works because we have bought and sold 100's of real estate investments in Memphis. We encourage you to contact us directly to get started investing in Memphis foreclosures.