"California Foreclosure Activity Hits Three-Year High," as reported by DataQuick Real estate news.

"Second quarter California foreclosure activity rose at the fastest pace in at least 14 years, the result of waning home price appreciation."

A Reckoning With Risk. "Will adjustable-rate loans lead to record foreclosures? Here's an article found in August's edition of U. S. News & World Report.

Buying real estate for a song is alluring, but there are pitfalls that could spell disaster.

"Nationwide interest has spawned an industry of foreclosure mavens as well as countless Web sites, infomercials, how-to books and seminars."

I had the oppostunity to attend one such seminar on Forecloures and Short Sales that was offered by Finanicial Title Company last week and wanted to share some insights.

"Such auctions may have piqued the interest of novice investors anticipating a rise in interest rates and the inability of some owners to meet their financial obligations.

"Yet while there is a tantalizing possibility of getting a deal, people who are intimately familiar with foreclosure auctions — lawyers, mortgage bankers, brokers and former auction regulars — advise steering clear of them."

"Success is not impossible, but to even set foot in the ring you must put in hours of due diligence and overcome myriad obstacles, including competing against auctiongoers who have mastered the art of the bid."

"You really have sharks at these sales," said Bruce Bronster, a partner in the Manhattan office of Dreier L.L.P. — his litigation group has handled more than 3,000 foreclosures. "You're a guppy. And you're going up against very seasoned and sophisticated guys."

This is from an article entitled; "Foreclosure Auctions: Bidder Beware," by Stephanie Rosenbloom of the New York Times.

"You don't know exactly what you're getting," said Melissa Cohn, the president of the Manhattan Mortgage Company. "That's the biggest risk."

For a better understanding of the foreclosure process, here are some links to review, compliments of Financial Title Company;

Foreclosure Timeline - California

Short Sales - Real Estate Preforeclosure
"The forclosure rate is soaring in most areas of the country presenting incredible opportunities for preclosure real estate investors! There are a number of ways the informed real estate investor can profit from homes facing foreclosure and one of the most lucrative is the pre-foreclosure.... SHORT SALE!" What is a Short Sale? Read the entire article HERE.

Trustee Sales - High Risk - High Payoff?
Keep in mind some of the risks and do your homework.

Post Foreclosure - REO Many properties are not sold at the trustee sale. If the minumum bid is not met, the bank becomes the owner of the property, REO (real estate owned).

Top Three Foreclosure Scams and One That Isn't

To Find a Bank's REO/Loss Mitigation Departments Phone Numbers; www.scotsmanguide.com

Labels: DataQuick, Foreclosure, Real Estate Cycles, Short Sale, Trustee Sale, U S News