Can anyone explain me about foreclosure real estate investing????

[magma]

My regards to the community, I would be seeking your advice on some matter. I have some interests in real estate and have read that foreclosure is an efficient way to gather up profits. I would like a little more thought on this…as to how does the whole thing work and how can we invest properly in pre-foreclosures to earn secure profits.

[Russ]

It would be pleasureful for me to generate counsel to you on this topic, however this type of investment practice is not existing in Costa Rica. 

This sounds a little odd shall we say?  I would be careful before getting into any investment scheme of "pre-"? foreclosure, especially if someone contacts you to do it.


In Costa Rica there isn't much foreclosure property on the market.  Banks are very careful in their lending practices and don't give you much more than 75% of the market value, because they tend to come in low on the appraisal value. Read here to get more information on lending by the banks here: Costa Rica mortgages

Which means that people aren't in a situation where it makes more sense for them to walk away than to continue paying their loan, or that the loan value is higher than the current equity.

So we don't have a big market here in foreclosures, although the banks do occasionally foreclose and there are property auctions that some investors attend.

[Barry]

Hi Magda , most foreclosures happen when the owner cannot sell a property so most are located in the middle of nowhere .
There are occasionally good properties from private banks but the managers  call around and make sure their friends or relatives get there first.
We even have companies who have opened business  to do this but all failed . 
You do a lot better asking brokers and get in on absent owners , owners near foreclosure or divorcies . You also should be prepared to do some remodeling or decorating as they could be in bad condition .
Also most homes do not have any mortgage on them .
Hope this helps .Sounds suspicious .This in nothing like the US .