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In response to my post from yesterday, Ryan Ward shot me an email discussing some of the finer points of investment real estate.  He asked an for an opinion and I fired back with a response based on what I know about the goings on in the area of Cobb County foreclosures.  I reviewed my answer, asked his permission, and figured others might enjoy reading a portion of our correspondence.

Ryan:  "So do you think that inventories are going to continue to rise and prices fall across the board. I know that condos and new homes are hurting pretty bad. What’s your prediction?"

Me:  "Just my opinion, of course, but this is what we are seeing in Cobb foreclosures.  The properties are being released quicker to the market as they scramble to liquidate…

First off, thanks to Ryan Ward for helping me to publish this chart.  I have been collecting this data for years and just couldn't figure out how to convert my spreadsheet into an image suitable for uploading.  The solution was elusive and he explained it in about one sentence.  Thanks Ryan.

OK, on to the data.  We were looking forward to a slow May at the auction, but you can see that it will be anything but slow.  There aren't as many investors as in past years, but it certainly isn't due to the supply of foreclosures in our county.  Most people don't have the means to participat in a Georgia non-judicial foreclosure auction since the purchaser must pay for the property in cash. 

This limitation gives birth to the notion of wholesale investment…

Here is a quick summary of the article in case you just don’t have the time.  Too many people are going straight into foreclosure without even attempting to sell their home.  If you get it, then no need to read further.  For the rest of us, here is the long version:

I get more calls than you might believe from distressed home owners wanting to know the ramifications of bankruptcy or foreclosure on their credit.  The short answer is that it is devastating (actually, that will work for the long answer as well).  After some probing questions, I can usually figure out if a foreclosure is forthcoming or if it is something that can be put off for a while.  Most of the time, with some guidance, it can be postponed for more favorable alternatives.

There is no…

This can best sum up this entire article, “if you don’t pay your mortgage, you will lose your home.”  That’s pretty much it.  Sorry. 

If you are in need of help, please read on.  This should at least be a good start on what NOT to do and might even help prevent you from slipping even further into debt.

Understand that there are several scams out there looking to take the very last dollar in your wallet, while promising to save your home from foreclosure.  Sound too good to be true?  Guess what I am about to say… anybody?  It is too good to be true!

There is no magical document that will hide your identity (Land Trust) or remove you from liability to the lender (Quit Claim Deed).  Mortgages are perfectly legal so don’t bother paying for…