Purchasing Foreclosures – Pennies on the Dollar

I’m often asked the question – Can you really purchase a bank foreclosure for pennies on the dollar? The answer is yes and no.

The reason why it’s no is pretty obvious. Let’s assume you own a house for $200,000, would you sell it for $5,000 – $10,000, of course not. You might sell it for $160,000 – $170,000 to sell it quickly, which works in today’s market. Banks are the same, they’re not going to let their homes go for 5 – 10 cents on the dollar, when they can sell them for 70 – 80 cents on the dollar. This is all pretty much common sense.

I just told you that banks will not sell you a home for pennies on the dollar, then you might be asking who does? The answer is the government. The government is in control of many types of homes including:

1 – VA Foreclosures – You can purchase for $0 down using VA financing and you don’t have to be a veteran. This is America’s best kept secret.
2 – USDA Foreclosed Homes – $0 down using their financing.
3 – HUD Homes – As low as $100 down. (Only in certain states)
4 – Fannie Mae Homes – 3% down using their financing. Use a grant to make up the difference.
5 – Freddie Mac homes – 3 1/2% down using FHA financing. Use a grant to make up the difference.

The best type of government home is a HUD home. In the past the government has run special programs, usually when a house is on the market for more than 6 months. You can get huge bargains, it all depends on what state you’re in. With the other government homes you can get a great buy but not as good as with a HUD home.

When we say pennies on the dollar we mean between 10 -25 cents on the dollar. If you’re looking for anything under 10 cents on the dollar you have to look at tax sales, which is rare and complicated to do. (You have to foreclose on the person on the Deed of Record.)

One of the best programs the government has is called Best Offer. If you’re in a state where many people don’t know about this program, you can bid on a house and get it for 25 cents or lower on the dollar. Another program is called Neighbor Next Door, where HUD will take 50% off their list price (where the house is already discounted 10% – 30%) for certain occupations. Another one is the Dollar Program, but this is only for non-profit organizations.

The longer a house sits on the market, the better deal you can get. If HUD has many homes that have been on the market for over 6 months, and the more homes the better, then HUD will come out with a new incentive program to sell the homes quickly. And in today’s market where homes are just not selling as quickly as before, you definitely want to keep an eye on HUD for their opportunities.

Home Sweet Business From Home – Contemplating the Idea?

Dollars earned working from home sweet home. Sweet idea indeed.

More than ever before the idea of starting and managing a business from the warmth of your own home sweet home appeals to the subconscious entrepreneurial minds of the everyday average people. The sweet and total gratifying thought of being able to earn those home dollars working from home, inside what many consider their own and last refuge, pampered by familiar surroundings, and satisfying the ever present and increasing need of spending more time with loved ones, away from traffic jams, demanding bosses and tight schedules is pushing, almost obligating, these people to dig and dive, in a seemingly desperate manner, into their own reservoirs of ideas, natural or acquired skills, or even the occasional hobby, and turning them into home sweet based business.

These entrepreneurs continuously are trying to come up with new magical applications of all these ideas to convert them into those wish upon home business dollars. While the intention of these self-made entrepreneurs is to organize, operate and normally take the full risk in such business ventures, expecting to gain the home sweet profits on a continuous and expanding business activity, the reality is that all of these wishful ideas are most of the times not acted (up) on, and are instead accommodated in the waiting room of their minds, most frequently not because the Do Not Want To, but because the Do Not Know How.

It is in this unknown twilight zone that the home worker has to be very careful since there are a lot of scams out there that could potentially take out the Sweet from the Home, and in the process destroy the sweet dream of enjoying the independence of being your own boss.Every home based entrepreneur should proceed with extreme caution and do a little bit of homework before embarking blindly in the first idea or sales pitch that passes by. It’s strongly encouraged to search for work from home ideas and opportunities that have been tested and proven, have passed an intensive screening process and are above all legitimate. It is also believed and preached by many in the industry that you’ll better have multiple automated streams of residual income to make it in this business.

Please be also advised that a home based business could be not for everyone. For many people it will be only seen as a mere supplemental income source for retirement or a momentarily extra income for the family, but not as a home based business.

In fact, in a recent survey published by the SBA only 46 percent of home based and micro business owners cited that making lots of money was a motivation for starting their own business. Seventy eight percent of business owners stated that having more control over their lives was the most important reason, and 90 percent said they would go into business again.

So, even though you may not get your home dollars from such an endeavor, it may be worth the effort to try your home business idea out to see if it would be successful.

Remember if you are a home based entrepreneur working for your own, with a justifiable dream of becoming financially independent, you may not see a profit right away, it all will strongly dependent on the type of effort you put into your own home sweet home business.